Serving the Community of Reseda For Over 50 Years.
We are the oldest & best pawn shop in the Valley since 1954. We look forward to meeting you. Give us a call or stop by to see what Traders is all about! Jewelry and watch repair and appraisal done on premises. Fast confidential loans.
Top Quality JewelryTraders Loan & Jewelry has a unique selection of high quality watches, precious gems, wedding bands and other stunning jewelry. Why pay retail prices when you can buy beautiful jewelry at less? Don't forget those special occasions and holidays - diamonds are a girl's best friend!
The History of Pawn
Pawn shops date back to ancient times and are one of the earliest lending instruments. In the early part of the last century Pawnbroking was regarded as the main source of consumer credit. Today, Pawnbroking plays a vital role among people who need loans for short periods of time. These types of loans are too costly for banks to make. Traders Loan & Jewelry makes collateralized loans based on a percentage of the current market value. We are a non-recourse lender. We do not charge any points, credit reporting fees, or appraisal fees like other lending institutions do. Most loans are made in minutes. Today's pawnbroker is regulated by the State of California, and all transactions are monitored by law enforcement.
Unfortunately, Hollywood has not been kind to pawnshops and, to many people, pawn shops have an ugly stigma as a last resort.
When The Great Recession happened in 2008, pawnshops across the country saw a huge influx of the middle and wealthy class who became short on cash but were lucky enough to have high grade valuables to pawn.
In 2009, The History Channel debuted the reality show, Pawn Stars. It gave America a look inside the interworkings of the pawn industry which many, like Traders Loan and Jewelry, are run by hard-working families who like to help people.
Over the past six years, the pawn industry is reshaping its perception for the better although there are still some misunderstandings but we’re working hard to improve upon that.
Here are nine things you may or may not know about the pawn industry:
1) Most Popular Pawned Item
Although we will pretty much loan on anything of value, the most popular item that is pawned is. . . . you guessed it! Jewelry. Pieces of gold, silver and precious gems have a built-in value of quality and weight. As a pawnbroker, we are always aware of their fluctuating values and loan accordingly. According to the National Pawnbrokers Association, 80% of all customers do reclaim their items, however at Trader’s Loan and Jewelry, our average is more like 95%. Pawning jewelry is more personal than other items. They retain a sentimental value that keeps customers attached to them so they’re more apt to get them out of pawn and make his or her interest payments.
2) Pop Goes The Weasel Is Not Just A Nursery Rhyme
“Pop Goes The Weasel” has to be one of the most popular nursery rhymes of all time; however, this phrase wasn’t intentionally meant for children. Although the song itself has many different lyrics since the mid-19th century, they all end with “Pop! Goes The Weasel.”
If you ask, most people have no idea what it actually means other than when you get to the catchy phrase a clown pops out of a jack in the box type toy. There is a British version of the song that includes this verse which indicates it’s connection to pawn:
“Up and down the City Road
In and Out the Eagle
That’s the way the money goes
Pop! Goes the weasel.”
Upon closer examination of this verse, “The Eagle” is referring to London’s historic Eagle Pub where apparently many a patrons spent all their cash. Some say the term “weasel” is Cockney slang meaning coat. So when you put it altogether, the song is referencing having to pawn one’s own coat after spending too much money on alcohol.
3) Merchandise Redemption
The assumption is that if you pawn an item, you’ll never see it again. As I stated above, fact is the national average of 80% of goods that are pawned are reclaimed (source: National Pawn Brokers Association) and 95% redemption rate at Traders Loan and Jewelry. Many people don’t realize that the majority of people who pawn their goods are repeat customers often pawning and reclaiming the same item over and over again.
4) Stolen Merchandise
Pawn brokers like Traders work closely with law enforcement reporting all items pawned or sold to us. We also require identification and fingerprinting. We always turn in a list of merchandise along with serial numbers to local police who check it against reports of stolen items. We do not sell any item we accept into pawn for three months for two reasons. The first is to give the person who pawned the item enough time to repay their loan and reclaim their item; the second is to allow time for the police to investigate any unsavory transactions.
5) Reality TV
Reality shows like Pawn Stars have done many good things for the perception of pawn shops. It gives people an up-close and personal view of the interior of pawn shops; like the fact that they’re clean, well-lit with security. You’ll also see the hard-working, knowledgeable people and families that run them along with an inside view of the rare and unique finds sitting inside pawn shops. Although I’m sure reality shows are scripted to a point, the family unit and down-to-earth people who like helping people are real and that’s usually a good reflection of what you’ll find at a pawnshop.
6) The Pawnbrokers’ Patron Saint
Yes, there is a patron saint of pawnbrokers and, according to legend, he was one of the most generous people alive. His name was Saint Nicholas. He was known for his desire to good to others. Legend has it that he saved the three daughters of a poor man from becoming prostitutes by anonymously hurling three bags of gold through a window at night for a dowry so they can be married.
Variations of this story say that Nicholas didn’t throw the bags of gold through a window but instead dropped them off one at a time over three consecutive nights. During his attempt to drop off the third bag, the father of the three daughters tried to find out his identity but Saint Nicholas was clever and dropped the bag down the chimney instead to keep his identity hidden. Over time, the story changed with a few additions like reindeers, elves and exchanging bags of gold for bags of toys to create the one and only, Santa Claus.
7) The Symbol of Pawn
If you look closely in, most if not all, pawnshops, you’ll see what is known as the symbol of pawn: Three gold spheres hanging from a bar. There are two popular theories about how this came about. The first is connected to the Medici dynasty in Florence Italy. The Medici’s were a family of bankers. The story goes that a member of the dynasty killed a giant with three bags of rocks that later morphed into the symbolic spheres. Local merchants adopted this symbol as a sign of prosperity and hanged it outside their own shops for good luck. The other theory is the one I mentioned above about Saint Nicholas and his three bags of gold. Which one do you think it is?
8) Pawn Shops Have A Lot of High End Customers
Pawnshops, known as the people’s bank, have catered to all economic backgrounds for centuries but on average, a typical pawn shop customer is someone who pawns and an item like a ring or a coat to get quick cash to take a trip, finance a business or buy a special item. Over the years, more and more wealthy, yet cash poor, customers, who need a fast method to get some capital, are going to pawn shops like Traders Loan and Jewelry. These types of customers are fortunate enough to have collateral they can borrow against.
9) Christopher Columbus and Queen Isabella of Spain
It’s been inked in the history books that Queen Isabella of Spain allegedly pawned her crown jewels to finance Christopher Columbus’ journey to the New World. This has since been proven incorrect. According to the new version, Columbus was already ready for his journey when Queen Isabella pawned most of her jewels. And the money she got from that went to the merchants of Valencia and Barcelona to pay for the campaign against the Moors to finance the Spanish Inquisition not Columbus’ journey to discover America.
Rumor has it that some of the money Isabella received from the smaller pieces she pawned was, in fact, pledged to Columbus and this backing brought in other investors that funded the trip.
If you deal with or are considering doing business with a pawnshop, look for one that has a brick and mortar store, has longevity, is friendly, is a member of their state and/or national association, has a lot of knowledge, integrity and who genuinely want to help people. You can find all this right here at Traders Loan and Jewelry in Reseda, CA since 1954.
Never been to a pawnshop? Thinking about making your first visit? You’re not alone. The poor economy has many people considering pawning items to provide short-term solutions.
“We’re seeing more and more people who’ve never seen the inside of a pawn shop walk through our door,” says Diane Taylor, owner of Traders Loan and Jewelry in Reseda, CA. “They’re looking for short-term solutions without having the sell everything they own,” Taylor continues.
Turning to a pawnshop is nothing to be ashamed about. It’s a great solution to help you get through rough patches. But there are some things that you should know before you visit a pawn shop.
Don’t believe the way Hollywood portrays pawnshops.
Pawnshops like Traders Loan and Jewelry are clean, well lit and family run. “For too long Hollywood and the media have vilified pawnshops as seedy, unscrupulous, dark and dirty,” says Taylor. “It’s simply not true. We are regulated by federal, state and local laws,” she added.
The Loan Transaction.
This is how pawnshop transactions work:
- Bring in an item that you own. Traders Loan and Jewelry will appraise it for you right there on the spot and if the price is agreed upon, we’ll offer you a loan on your item. If you accept our offer, we will keep your item in a secure vault until you pay off your loan. Once the loan is paid off, your item is returned to you.
- You can outright sell your item to us. We’ll appraise it and make you an offer.
- If you decide to pawn your item, you will get a legally binding contract, also known as a pawn ticket. It’s imperative that you put this in a safe place. It’s a receipt for your financed item and it also clearly outlines the terms of your loan such as fees, expiration dates, description of your item(s), etc.
Paying your loan back.
There are two options to pay back your loan. They are:
- You can pay the principal and the interest to pick up your item. Loans in the state of California are for four months.
- Or you can just pay the interest and re-write your loan for another four months. If you choose not to continue your loan, then it will foreclose and it becomes the property of the pawnshop. At Traders, you’ll receive a 10 day notice after your loan expires. Other than losing your item, there are no other repercussions. We are a non-recourse lender and do not report you to the credit bureaus. The national average of people who reclaim their items is eighty percent (Source: NPA). At Traders Loan and Jewelry, the average percentile of people who reclaim their pawned item is ninety-five percent.
Interest rates on loans.
Interest rates are set by the state of California for Traders Loan and Jewelry. Check with your state if you’re not in California. At Traders, we offer a special interest rate of 2% if you redeem your loan within the first month.
People come to pawnshops for all different reasons. For example, they’re in between jobs, they have something special they want to purchase, they want to buy a house, finance a business or want to take a trip. Also, over 30 million don’t have relationships with banks and rely on pawnshops like Traders Loan and Jewelry to meet their financial needs. (Source: NPA) We are the people’s bank.
Pawnshops are a great source of getting cash. Pawnshop fees are usually lower than taking an advance on your credit card and overdraft fees.
At Traders Loan and Jewelry, we clearly explain all fees involved with your pawn before we finalize your transaction. We also clearly list them on your pawn ticket.
What Pawnshops Will Buy And Won’t Buy.
We love anything of value whether it be jewelry, watches, coins, tools, art, furs, antiques, collectibles and musical instruments. If you think of you have something of value, it’s best to bring it in to Traders Loan and Jewelry in Reseda, CA to be evaluated.
Be prepared to show current government issued ID and to be fingerprinted as all items are reported to local law enforcement daily.
Loans are fast and confidential and when you deal with Traders Loan and Jewelry, you can be rest-assured your items are completely secure.
I would love to hear your thoughts. Have you been to a pawnshop? What was your experience? If not, do you think it's something you would consider in the future? And, as always, thanks for reading.