Comment by Apofis
He does have to turn a profit on what he's buying. You want spot price? Oddly enough, in California and maybe other states, a pawn shop will give you spot price.
He does have to turn a profit on what he's buying. You want spot price? Oddly enough, in California and maybe other states, a pawn shop will give you spot price.
I’ve gotten them to sell under spot once bc they mispriced their inventory.
Why California? Most pawn shops suck (see Pawn Stars where they offer like 1/3 of the value on most stuff), but you might find a few pawn shops that want to deal with metals and coins. The best thing to do is to shop around a bit when trying to sell anything.
Pawn Stars is semi-scripted entertainment, not necessarily representative of how real pawn shops operate. The actual prices were were negotiated before the episode was recorded.
But of course there will be a large bid / ask spread on collectibles and small quantities of precious metals. Dealers have to make a profit. Anyone who doesn't like the price is free to sell on eBay or at a local coin show or something.
Pawn shops can sell to large online dealers almost instantly in normal times. They can also sell on eBay easier than you can, as an established business. You can do those things too but maybe you don't want to deal with shipping and other hassles. I've heard really atrocious numbers (second hand) from pawn shops. To give you an idea, one guy went to a pawn shop and basically got offered $35 per oz on silver rounds when it was at $65. The coin shop offered him more like $55 if I remember right. This was in December, well before any big buyers stopped taking it or locking in prices. Even at $65 it looked high, because it was a record high, but tell your friend try to buy it immediately after you and it will be significantly over spot!
PS: eBay charges 14% or something. I also know very well that Pawn Stars is scripted, but the business side is true to life.
I’ve also found a few in various states that buy Eagles for spot - of course then they’ll sell them forwards at spot + 15% or something