Buzz
Pawnshops have long carried a negative reputation as a place for the desperate to sell their possessions in times of need. However, since the 2008 financial crisis, there has been a significant increase in foot traffic from individuals across all economic backgrounds, including those who were once considered financially secure. Even wealthy individuals have turned to pawnshops to secure loans by parting with valuable items. In 2009, the History Channel introduced Pawn Stars, a reality television series that followed the antics of a Las Vegas pawn shop. The show became an instant sensation, drawing massive viewership and inspiring many similar shows. The pawn industry continues to prosper today, though its public perception remains clouded.
10. Stolen Goods
A significant risk that pawnshops face when purchasing or accepting items is the possibility that the item is stolen. It is nearly impossible to determine by sight alone whether a television, watch, or other item is illicitly obtained. As a result, pawnbrokers are required to meticulously document every item they accept, ensuring customers provide identification and, in some cases, even fingerprints to prevent the illegal practice of 'fencing.'
Pawnshops regularly submit a detailed inventory of their items, including serial numbers, to the police, who cross-reference them with reports of stolen property. By law, pawnbrokers must hold onto all merchandise for a specific period—usually two to three months—before selling it. This gives the original owner a fair chance to buy back their items, while also allowing the authorities time to investigate any suspicious transactions.
9. Queen Isabella and Christopher Columbus
For many years, it was widely believed that Queen Isabella of Spain funded Christopher Columbus’s 1492 voyage to the New World by pawning her crown jewels. However, this theory has been disproven. By the time Columbus was ready to sail, Isabella had already pawned most of her jewelry, including a pearl and ruby necklace given to her by King Ferdinand as a wedding gift, along with the crown of Castile. She had given these to merchants in Valencia and Barcelona to finance the campaign against the Moors and fund the Spanish Inquisition.
It is thought that Isabella may have pledged some of her smaller jewels to Columbus, and that this gesture helped attract additional investors. Among them was the Santa Hermandad police organization, which provided the majority of the funding for the Nina, the Pinta, and the Santa María to make their historic voyage across the Atlantic.
8. Pawn Stars
History Channel's Pawn Stars is arguably one of the best things to happen to the pawn industry. The show, which showcases three generations of the Harrison family (with the lovable, bumbling Chumlee) running the Gold & Silver Pawn Shop in Las Vegas, blends humor with the fascinating world of unusual, often extravagant items. Episodes have featured items such as cannons, a Batmobile replica, and even a cigar box once owned by John F. Kennedy (the priciest item on the shop’s shelves, priced at $125,000).
Like most reality shows, much of Pawn Stars is scripted and staged to add dramatic flair. The show features staged elements such as surprise guest appearances for purchases, frequent calls to experts, and even the cast's absence from the counters due to privacy laws (their fame has made them constant targets for photos, which can compromise the privacy of customers).
7. The Patron Saint of Pawnbrokers
Although some may view pawnshops as symbols of human greed, the patron saint of pawnbrokers has a reputation for extraordinary generosity. Saint Nicholas was widely admired for his kindness. In one well-known tale, he saved three daughters of a poor man from a life of prostitution by secretly providing them with three bags of gold to use as dowries, throwing the bags through their window under the cover of night.
In some versions of the story, Nicholas dropped the gold bags one at a time over three consecutive nights. On the third night, the man attempted to discover the identity of his mysterious benefactor, but Nicholas outsmarted him by dropping the final bag down the chimney. This story eventually evolved, with the inclusion of reindeer and the replacement of gold with toys, to form the cherished legend of Santa Claus. Saint Nicholas is also the patron of repentant thieves, the wrongfully accused, children, and pharmacists.
6. High-End Pawnshops
While most pawnshops focus on everyday transactions—where people exchange jewelry or electronics for a quick cash infusion to cover bills or rent—a new trend has emerged in recent years. High-end pawnshops, also known as collateral lenders, cater to wealthy individuals who find themselves temporarily cash-strapped. These clients typically need a large sum to launch a new business or cover payroll during a slow month. Loans can reach hundreds of thousands, even up to a million dollars, with collateral including luxury sports cars, priceless artwork, and rare jewelry that most people only see in museums. The interest rates for such loans can be astronomical—in Texas, for example, collateral lenders are allowed to charge 240 percent annually.
5. The Wes Welker Butterfingers Incident
When the New York Giants squared off against the New England Patriots in Super Bowl XLVI, few gave the underdog Giants a chance. Though the Giants had defeated the Patriots in a previous Super Bowl, many saw it as a fluke. The Patriots were hungry for revenge. However, late in the fourth quarter, with the game on the line, Patriots wide receiver Wes Welker missed an easy catch. The Giants seized the opportunity and went on to win, leaving Welker visibly upset and on the verge of tears in the post-game interview.
Seizing on the controversy as a marketing opportunity, Pawngo.com, the first online pawnshop in the U.S., staged a publicity stunt in Boston’s Copley Square. They dumped 400 kilograms (900 lbs) of Butterfinger bars on the ground, placing a sign over the pile that read “Thank You Wes Welker.” Predictably, the stunt backfired, and Pawngo’s CEO quickly issued an apology. The company was also fined for violating Boston’s commercial dumping regulations.
4. The Item Most Often Pawned
Pawnshops are willing to take almost anything of value (although some specialize in specific categories such as musical instruments, tools, or firearms). Common items that people pawn include electronics like televisions, video games, and laptops. However, many customers are disappointed by the minimal returns they receive. The truth is, technology changes rapidly, and last year’s gadget is often worth only a fraction of what it originally cost. Savvy customers tend to avoid items like used computers, as they may come with hidden issues that are not immediately obvious.
Jewelry is by far the most frequently pawned item. Precious metals like gold and silver, along with valuable gemstones, hold inherent worth based on their weight and quality. Pawnbrokers are always aware of the fluctuations in the value of these materials. Additionally, jewelry often carries sentimental value, which motivates the customer to return and settle their loan in order to reclaim their precious pieces.
3. Pop Goes The Weasel
The tune “Pop Goes The Weasel” has been around since the mid-1800s, or perhaps even earlier. It’s widely known as one of the primary songs played by jack-in-the-box toys. The song exists in many different versions, but all versions end with the famous line “Pop! goes the weasel.” The exact meaning of this phrase remains unclear, though one British variation of the song suggests it may be linked to pawnbroking:
Up and down the City Road In and out the Eagle That’s the way the money goes Pop! goes the weasel.
Breaking down this verse, “The Eagle” refers to the famous Eagle Pub in London, indicating that the song may describe spending all one’s money on drink at this establishment. The term “weasel” is thought to be Cockney slang for a coat, meaning the song could be alluding to having to pawn one’s coat after squandering money on alcohol.
2. Reclaiming Merchandise
Although it might seem that someone willing to pawn something as precious as an engagement ring would never be able to get it back, the National Pawn Brokers Association reports that, on average, 80 percent of items are ultimately reclaimed. Most pawnshop transactions involve repeat customers who frequently pawn and reclaim the same items, which is beneficial for the pawnbroker. It ensures consistent interest payments and a higher likelihood that the customer will follow through. However, in economically struggling regions, the reclaim rate can drop as low as 50 percent.
1. The Pawn Symbol
The internationally recognized pawn symbol consists of three gold spheres suspended from a bar. There are several theories about its origins. Some trace it back to the famous Medici family, who were known as bankers, monarchs, and even Popes. The legend suggests that an early Medici member killed a giant using three bags of rocks, hence the three spheres. This symbol was later associated with prosperity by merchants, who displayed it outside their shops. Another theory links the spheres to the story of Saint Nicholas and his three bags of gold. Today, those in the pawn industry humorously claim that the three spheres represent ‘Two to one, you won’t get your stuff back.’
