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1. I imagine that a 14 year-old ring like this is worth only a few hundred bucks in the retail market due to depreciation.
2. I suspect that Pawn Contract would state that the shop is not responsible for a loss of pawned item through negligence . . . though it may not be enforceable.
3. I bet she doesn't have a homeowners insurance (with a jewelry rider) and, even if she did (a) the deductible is probably more than the fair value, and (b) the most she can recover is the fair value less the deductible. In other words, she'd only get a couple of hundred dollars from her insurance, best case. (see 1. above)
4. The best case scenario for the woman if she sues in a small claims court is few hundred bucks for fair value (less insurance proceeds, if any).
5. People who go to a pawn shop to borrow money are the same people who borrow money for a crappy used car at 24.9% APR . . . . they have no other choice if they must borrow money . . . . no credit, income or assets.
Mick
Theres no such thing as depreciation on precious metals. You pay retail for it, this retail figure includes profit to the retailer, you wont recoup this unless the metal prices greatly increase. Its just like the proverbial "drive a car off the lot and it goes down in value by X." You dont get to sell something for what you paid for it. Its also not WORTH whatever you paid for it. So many people fail to understand this. The other factor is the CURRENT precious metal price. This is also known as its melt value. Some places will pay you this or around this.
Basically your jewelry is only worth the melt value, whatever you paid above that was due to a variance in melt value over time plus profits to the retailer. This is especially evident in sterling jewelry which is a RIPOFF. Youre buying 2 bucks worth of sterling silver in that ring but paying several hundreds if it is "designer."
Theres no such thing as depreciation on precious metals. You pay retail for it, this retail figure includes profit to the retailer, you wont recoup this unless the metal prices greatly increase. Its just like the proverbial "drive a car off the lot and it goes down in value by X." You dont get to sell something for what you paid for it. Its also not WORTH whatever you paid for it. So many people fail to understand this. The other factor is the CURRENT precious metal price. This is also known as its melt value. Some places will pay you this or around this.
Basically your jewelry is only worth the melt value, whatever you paid above that was due to a variance in melt value over time plus profits to the retailer. This is especially evident in sterling jewelry which is a RIPOFF. Youre buying 2 bucks worth of sterling silver in that ring but paying several hundreds if it is "designer."
This however has nothing to do with replacement value, which is what the pawn store is on the hook for.
The replacement value is whatever it would reasonably cost to buy the same exact ring, perhaps with some discount due to it being used and not in the best shape.
It's not a $2000 ring. It's an $1100 ring, at the most. The ring isn't worth what she paid for it new. It is worth the depreciated value of the used item at the time of the loss/theft. I agree it's unlikely she was going to use the money on vacation, but I'm not so cynical as to think it was going for drugs. She was probably running short so she was using it to pay the rest of an oil bill of something. It sounds like the pawn shop is trying to make it right by getting her a similar/identical ring.
Diamonds don't generally depreciate in value. That's why when mine fell out of my engagement ring and was lost, my insurance company gave me the full appraised value, even though the appraisal was done when the ring was purchased, ten years earlier.
Something isn't right, nothing to do with the ring being lost.
I can't for the life of me understand why someone would pawn an item worth $2,000 for $90!? She needed the extra $90 for vacation? Just seems like a foolish decision.
Most shops will give 10% of the value....That's why the $90 puzzles me.
I don't feel sorry for people that bank atawn shops, pay day lenders, title loan places etc.
You should , believe me when anyone is at that level they are truly desperate .
NO one "banks" there . Jeez . That's a last resort or they are a thief unloading things quick .
Unfortunately the Pawn Shop looks to be the thief here .
Must be a nice enough ring , for them to pull a stunt like this .
On second thought ,, its not so much the $$ value at this point whether its 50.00, 2,000.00, or 50,000 it's that they have it , you know it , I know it , THEY know it .
...or pay your bookie. My engagement ring was pawned by my ex to pay his illegal gambling debts. Never got it back. Got rid of Mr. If-it's-addicting-I'm-gonna-do-it, too.
Status:
"Let this year be over..."
(set 17 days ago)
Location: Where my bills arrive
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Is this person up for a Darwin Award? Why would you pawn what you perceive is worth over $1500.00 for $90.00, it would be easier to get a $100.00 advance on your credit card........
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Does jewelry depreciate?
awn shops, pay day lenders, title loan places etc.
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