Pawn shops a hot item in hard times

Large, sparkling diamonds in custom-made settings inside the jewelry counter at Family Pawn represent a sign of the times.

As people fall on hard economic times, they are looking to pawn shops to make quick cash, get a loan or shop for a bargain. 

Don Mayse, chief executive officer of five Family Pawn stores in Missouri including the one at 2805 W. Broadway Blvd., said he’s noticed more people selling high quality jewelry in the past year. 

“We’ve seen folks selling a few things they might have held onto in years past,” Mayse said.

The result is the “best selection” of jewelry Mayse has seen in his nearly 32 years in the business. Mayse may only keep two of 10 pieces, and the rest is melted for bullion or sold as loose diamonds. But the larger volume of jewelry coming in, with big, quality stones, has made for a better selection.

“The bigger the sample you get coming in, you can get more choosy,” Mayse said.

In the jewelry case, Mayse points to examples of items he used to see once a year and now has several — a custom-made ring with a large diamond in the middle surrounded by several baguettes, an old filigree setting Mayse bought and placed a high quality diamond inside, and a large gold and diamond broach.

The market price of gold and silver might also have something to do with the boom in pawning or selling jewelry.

“When gold gets high, and they can get more money, they think it’s time to sell,” Mayse said. “It’s price driven.”

Shoppers are also getting the best deal at the jewelry counter in the pawn shop, Mayse said. 

“We actually sell to the public at a wholesale price,” he said. 

A two-karat wedding ring that may cost $5,000 in any retail store would sell for about $2,500 in the pawn shop. 

Other popular items for shoppers are guns, DVDs (priced as low as $2) and musical instruments. The poor economy is also reflected in the shoppers.

“I’ve seen more people bargain shopping than in the past,” Mayse said.

Sales at Family Pawn are up in every category, he said. 

George Agnew, of rural Sedalia, frequents Family Pawn looking for gas-powered saws he can use for his firewood cutting business. He is “lookin’ for a bargain” and “once in a while they’ll have a big saw.” Agnew said Monday he can buy a used saw for $150 to $200, whereas a new one costs about $500. 

“I’ll take it. ... It’s better for my pocket than someone else’s,” Agnew said.

Agnew has also found deals on guns and a diamond necklace for his wife.

Joe Dirck, 39, of Sedalia, was also in search of a bargain Monday. He shops at Family Pawn and Vinson’s Pawn Gun & Ammo, 2700 S. Ingram Ave., for tools and occasionally a gun.

“You never know what you can stumble across,” he said. 

Dirck checked out a TIG welder priced at $1,625, which would typically retail for $3,000 to $3,500, he estimated. Tools at pawn shops typically already have the extra accessories, which can raise the price at retail places, Dirck said. 

“It’s basically already complete and ready to go,” he said.

People of social classes pawn and sell items to the store.

“All cross sections of folks borrow money for one reason or another,” Mayse said. 

Mayse said some people like to borrow against their belongings because there’s no credit application.

There are “very few things we won’t take” unless they are broken, Mayse said. 

Customers can negotiate prices. Mayse said “everything sells at some price” and he is conscious of how many items will have come out of pawn and how much he’s bought outright that day. He has to make sure there’s a good flow of sales, so he doesn’t get backed up on inventory.

It helps that everyone’s looking for a good deal these days. A guy who used to spring for the extra $200 to buy a new tool is deciding to save money by buying it used, Mayse said. 

“Our best sales and times will be when the economy is depressed,” he said. “People are shopping for a bargain.”