Bob has an idea on how to make some extra cash. He pawns $30 at the local pawn shop for $15. Then he goes to the pub next door and sells the $30 pawn ticket to Jim for $20. It looks like both make money on the deal. Is that true? Who gets the short end of the transaction? Is it Bob, Jim, or the pawn shop?
(In reply to What is a pawn shop?
Perhaps the $30.00 that was hocked was old script or coins that were no longer legal tender (such as the currency of the Confederate States of America) but would still have value to a collector; and hence be acceptable by a Pawn shop for the $15.00.
Of course in this scenario, Jim may be a expert in numismatics and may know the real value of the pawned $30.00, and thus, all made a profit. Bob, who recieved $15 (from the Pawn shop) + $20 (from Jim) for, to him, valueless or near valueless paper/coins; Jim, who eventually sells the currency to a collector for a profit (let's say $100.00); and, for a the Pawn shop, who received $15 + (a small transaction fee, which Jim was happy to pay!)
Posted by Dej Mar
on 2006-04-11 17:06:03