Today I want to tell a real story that happened to me in April 2021 about how pawn shops deceive people. At the end of the article, I will give recommendations on choosing a master jeweler and how to avoid falling into the trap. In addition, I will say right away that I cast all products in foundries that carry out internal assay control. That is, the products are given to me only after they have been checked for compliance with the sample (internal assay control).
History No. 1 (many instructive things. St. Petersburg)
I made 2 white gold rings for a client. They were cast with a difference of 2 months in two different large foundries in Moscow, with a good reputation. After some time, the client took the rings to the pawnshop for inspection. She decided to check them on the recommendation of her friend, who said that white gold did not look like white gold. She took my first ring to two different pawn shops. In both they said that the rings do not hold 585 standard, and they said that it was not gold, “but some kind of alloy” (quote). The client swore strongly and sent me back the rings demanding that I check them. But everything is in order. The pawn shop did the following:
1) They cut off a piece of metal from the side, which was not returned, and made a deep cut into the ring. I cut it so deep that the ring now requires repair and soldering, because... sawed almost right through. It was as if the pawnshop operators deliberately spoiled it so that the client would definitely hand it over.
2) The ring was checked with a reagent . The reagent darkens if the metal does not match the sample. The metal on my ring darkened, but this was because the operators tested the ring with a reagent that is designed for 750 gold. That is, they deliberately tested it with the wrong reagent in order to present pseudo-evidence.
3) Examining the color of gold, the operator assured that it was not white gold, but some kind of alloy . In general, many people do not know the color of white gold. They know the color of white rhodium, which is used to cover products and display them in large chain stores. This is the color you see and know from examples from a store or pawnshop. White gold is more of a dirty gray color with a hint of yellow, because the color of gold is naturally bright yellow.
4) If the product does not have a hallmark, then the pawnshop operators will simply swear that you do not have gold or gold of low quality. By the way, the test is given only because there is such a law in the Russian Federation. In a number of European countries, for example, they don’t test at all, like we do. A jeweler can make a product for you from good gold without hallmark. As I said above, large foundries give jewelry to the jeweler only after internal assay control.
White gold plated with rhodium on top, plain white gold below
The solution to the problem will be at the end.
History No. 2 (Moscow)
I made enamel on a large red gold keychain. A keychain from another jeweler, which had a state standard, the weight of the product is 12 grams. The buyer took the keychain to the pawn shop for inspection. This is what they told her there:
1) This is a fake sample , anyone can put these on special equipment
2) The sample was spark, in other words, applied with a laser. The operator said that such a test is not used for gold . Supposedly this is a sign of a fake. Spark tests have been performed for many years! This is a common procedure. An outright lie designed for an ignorant person.
3) They said about the quality of gold that it is gold, but with a large number of impurities and does not correspond to 585 standard. I determined it with a reagent according to the same principle as in Story No. 1. (reagent for higher samples)
4) The keychain was valued at 11 rubles. So that the reader understands, the cost of gold alone was 28,000 rubles. (just over 12 grams). This is the difference in amount that the pawnshop decided to take for himself by deception.
How to check gold when buying
In stores, they carefully check the gold standard and offer goods for sale only of the appropriate quality. But people often purchase jewelry from private individuals, since in such cases they offer products much cheaper. At the same time, there is a possibility of buying a fake that looks similar to pure precious metal. This practice exists in Russia, despite the strict control of authorized bodies.
A cheap analogue of gold is pyrite or gold-plated copper. They are similar to precious metals in appearance and physical properties. Counterfeits can usually be easily identified by visual inspection by an experienced professional. The most common mistakes made by scammers are poorly designed numbers on the stamp. The specialist will also immediately determine the costume jewelry and gilding, as well as the level of alloys.
If necessary, the master applies surface cleaning: if the jewelry is dirty, painted or treated with chemicals. In this case, the top layer is carefully cleaned using a scraper, needle file or file. Then a special substance is dripped onto this place and left for a certain time.
State supervision of gold
In 1700, Peter I carried out a monetary reform, after which state testing of products made of precious metals began. In the 1720s, the first “assay tents” were organized in Moscow and St. Petersburg.
The State Assay Supervision Inspectorate (GIPN) acquired its current name in 1940.
GIPN is the only institution in Russia where it is possible to test and mark jewelry . Only the Assay Supervision Inspectorate will tell you what grade of precious metal alloy is in your product with an accuracy of thousandths.
Procedure
A specialist will tell you how gold is checked in a pawnshop and what is needed for this. It is recommended to carry out the procedure even if the owner does not plan to sell it, in order to ensure its value. The verification is free and fast. The result will be reliable, since the process is carried out carefully and standardly consists of several stages:
- Determination of gold standard. At the same time, the specialist correlates the numbers on the mark with international standards. If the mark is missing, the appraiser will use alternative verification methods.
- Determination of the sample can be carried out by cutting the product and exposure to a chemical substance with an acidic composition. The reaction of the precious metal makes it possible to identify the sample - if the crack turns brown, the gold has a sample value below 585. If there are no changes, then the gold is expensive and of high quality.
- Product weight. Mass is measured on special scales. The electronic device has an accuracy of up to 0.01 grams.
- Visual inspection. Carried out to identify possible damage. If the jewelry is broken, the value will decrease significantly. The products are assessed as scrap.
- Presence of stones. Gemstone inserts significantly increase the price.
Try
The sample will tell the appraiser the basic information about gold jewelry. This is the first thing pawn shop employees pay attention to when evaluating jewelry.
There are two hallmarks on gold jewelry. The first is applied by the Assay Office. A sample in the shape of a spatula indicates that the jewelry was legally sold in Russia. A woman’s head in a kokoshnik or a star can be depicted on the shoulder blade. Next comes the sample itself: 375, 500, 585, 750. This number will tell you the amount of impurities in the jewelry. Thus, a 585 sample item will consist of 58.5% pure gold, the rest being impurities. After the digital sample there may be a code of the assay office that carried out the control.
The second mark is from the manufacturer. It consists of three parts:
- Year of manufacture;
- Inspection code, similar to the first mark;
- Manufacturer code.
It happens that the sample is impossible to see, or it simply does not exist. For example, you bring as collateral an old, expensive item where the hallmark has already worn off. In addition, there is a possibility that the sample was tampered with. Then other methods of checking gold come to the aid of the pawnshop appraiser.
Gemstone Testing
Products with stones are most valuable. Knowing how to test gold, it is useful to familiarize yourself with the procedure for testing stones. In a pawnshop, the procedure is carried out according to the global 4C methodology for four indicators:
- mass of stone;
- color;
- purity;
- cut.
The weight of the material is measured in carats. Stones are small - less than 0.29 carats, medium - less than 0.99 and large - more than 1 carat. This indicator is determined by weighing and subsequent visual inspection using a magnifying device.
The color is clearly visible if you place the stone on a white piece of paper or plastic. In this case, gemological lighting with white rays is used.
The most important criterion for a stone is purity. To identify it, GOST tables have been developed. There are 12 purity values. Stones with severe damage are of least importance. Cracks that are visible at 10x magnification or with the naked eye are taken into account. Higher magnification is not used to evaluate purity. Scratches can be on the surface of the material or inside.
To evaluate the cut, a scale with graduations A-G is used. The methodology was developed by GOST. This parameter is subjective, since the same cut may attract one consumer and not appeal to another. But often a product is purchased based on its cut.
A complete gold inspection includes an assessment of the precious metal and stone, mounting option, appearance of the product, manufacturer and level of wear. How the gold is checked at a pawnshop determines whether the owner will be able to sell it at a decent price. At home, it is impossible to accurately determine the quality of the decoration. Therefore, it is worth resorting to the help of professionals.
Is it possible to carry gold from a pawn shop?
From a financial point of view, purchasing jewelry made of precious metal is reasonable and profitable. This is especially noticeable if the item is rare (for example, made to order) or from a set (when not the whole thing is given away, but only individual elements), and this can be a good gift. But in this situation, it remains unclear whether it is possible to wear someone else’s gold from a pawnshop. There is an opinion that jewelry accumulates the energy of previous owners. At the same time, such views on the purchase of gold rings, bracelets, crosses and other trinkets are just guesses based on esotericism, mysticism, signs and superstitions. They are characteristic of very impressionable people.
In fact, things made of gold do not have any different properties than those sold new on the Internet or in a store. Their condition will also be close to ideal, because appraisers do not risk accepting goods with a damaged appearance.
For the suspicious, there are folk tips on how to cleanse the energy field of jewelry. For example, the product is placed in a glass of water and left in the freezer for 24 hours. It is recommended to take water from a well or spring. When the time is up, the container is removed and as soon as the water has melted, the jewelry can be safely put on.
Also, as an option, you can melt purchased “scrap” into a new decoration, because superstitions say nothing about the memory of metal. You can also go to church with your purchase and ask for help from a priest or priest.
It is stupid in the 21st century to think about gold jewelry from a pawn shop in this way, because other things that were used do not bother anyone. But if superstitions are still stronger, then deciding whether you can buy a cross at a pawnshop or another item is a personal matter for everyone.
How to check gold in a store
Using special instruments you can also check the quality of precious metals. Their action is to measure the electrochemical potential.
Most often, the material is checked using electronic testers. Inside the device there is a liquid with which the product is processed and its compliance with standards is determined. If it is possible to conduct laboratory tests, the full composition of the alloy can be determined. In this case, the X-ray method and a spectrometer device are used. The jewelry is placed in a scanning chamber. The chemical composition will be calculated by the computer and displayed on the monitor.
As available tools for self-testing, the following are suitable:
- vinegar, in which false gold will tarnish;
- a magnet to which the precious metal is not attracted;
- porcelain, on which yellow traces of gold remain;
- glass on which no traces will remain if you run a precious metal over it;
- iodine, which leaves dark marks on gold.
It is advisable to carry out testing for each decoration. This will allow you to ensure its quality so that you can sell it profitably or wear it yourself.
about the author
Evgeniy Nikitin Higher education majoring in Journalism at Lobachevsky University. For more than 4 years he worked with individuals at NBD Bank and Volga-Credit. Has experience working in newspapers and television in Nizhny Novgorod. She is an analyst of banking products and services. Professional journalist and copywriter in the financial environment [email protected]
Is this article useful? Not really
Help us find out how much this article helped you. If something is missing or the information is not accurate, please report it below in the comments or write to us by email
Is it profitable?
Today in Russia there are approximately 4-5 thousand pawnshops. And this number is constantly growing. According to statistics, such a business has an annual growth of 15%. In fact, this is a big indicator, because the number of the same stores in our country increases by only 10-12% per year.
In fact, a pawnshop is a small bank, but with very favorable conditions. The client can apply for any loan there - from 100 rubles to several hundred thousand. The most pleasant thing is that this amount does not even have to be returned, although you will have to sacrifice your property. In this case, the owner of the establishment can dispose of it independently.
Such offices began to bring in the greatest profit not so long ago, after the start of the economic crisis, when citizens’ need for funds increased sharply.
For almost ten years now, opening a pawnshop has been considered an incredibly profitable activity that anyone can organize.
Why are pawn shops attractive to customers?
- The loan is issued in a very short period of time (from several minutes to an hour).
- It is possible to get almost any loan amount.
- Any person over the age of 18 can complete all documents to receive a loan if they only have a passport.
- The client has every right to pledge any property that is of at least some value.
The most popular and profitable business is buying jewelry and here's why:
- You have minimal risks, because the loan is equal to no more than 90% of the total cost of the products. Therefore, if the client does not agree to buy back his collateral, then you can sell it very profitably.
- For example, you don’t need a large room like you would need to open a car pawnshop. The most important thing is a safe, don’t skimp on it.
Comments: 0
Your comment (question) If you have questions about this article, you can tell us. Our team consists of only experienced experts and specialists with specialized education. We will try to help you in this topic:
Author of the article Evgeny Nikitin
Consultant, author Popovich Anna
Financial author Olga Pikhotskaya
How to open a pawnshop: step-by-step instructions
Here are the main points that will help you cope with starting your own business as quickly and easily as possible.
Explore the market in your city
As we have already said, the number of pawnshops is only growing every year. Several factors contribute to this: the abolition of licensing, the demand for quick loans from the population, the lack of large offices in some regions.
Carefully read the services and conditions of all buying centers in your city. What are they betting on? Try to find an area where you can differentiate yourself, such as setting a lower rate on certain types of property.
Decide on your work schedule and specialization
After completing the first point, it will not be difficult for you to find a gap in the system of this business in your city. Think about what citizens lack, what you would like to do. Did these points coincide? Many pawn shops are now open 24/7. Take this specificity into account when selecting personnel.
Calculate your investment
An important step. Before you open your business, be sure to make all deductions. Draw up a business plan and decide on all possible expenses. Calculate your income. Think about how much money it might cost to pay employees. Which expenses will be monthly and which will be one-time expenses?
Come up with a name
Naming is a whole science. Be sure to choose a name that will immediately become popular. Don't be afraid of creativity and brightness, but in moderation. This is especially beneficial in a highly competitive environment.
Choose a place
Give preference to small rooms in densely populated residential areas. Firstly, it’s easier to find clients, and secondly, rental fees in such areas are quite low.
Register as a legal entity
To do this, register an LLC or individual entrepreneur. If you are only going to issue loans, then the first option will give you more professional opportunities. Don't forget to choose the general tax regime. In the charter, indicate special numbers of OKVED codes that regulate the work of pawnshops - 67.13.5.\65.22.6\ 74.14.
If you want to carry out activities selling things, for example, open a consignment store based on the office, then choose an individual entrepreneur with a simplified tax payment system. You can learn more about how to do this here.
Get the necessary documents
After you have become a full-fledged legal entity, proceed with the preparation of the remaining necessary papers. You will have to register with the Assay Chamber, the Federal Service for Financial Monitoring, obtain a license and register your activities.
Purchase equipment
You will have some time, which you can easily spend on thinking through not only the design of the room, but also its technical component. All this just while all the documents are drawn up and approved by higher authorities.
Only you decide how much to spend on purchasing computers, MFPs, display cases, tables and chairs. There is an option to purchase used equipment and furniture, or, on the contrary, you can order an individual project from a designer and the latest equipment in another country. It all depends on the available funds and the chosen concept.
Consider purchasing dedicated software
Software is almost the most basic thing in organizing your business. It is it that takes into account and controls everything that happens with its finances and document flow. It is your real assistant, which is why you need to carefully consider the choice of security.
Looking for employees
You will have to spend time finding conscientious and experienced workers. It is best to contact a recruitment agency, they will help you find qualified specialists. For the first time, you need 2 cashiers and 2 appraisers working in shifts.
Prepare internal documentation
Before you start working, be sure to check that you have the following documents:
- Book of expenses and income.
- Magazine about TB.
- Order on rates.
- Responsibilities of each employee.
- Statement of the value of gold (if you are engaged in jewelry).
- Employment contract.
Take care of your safety
Your establishment will always be in some potential danger: money, jewelry, equipment - all this is of interest to robbers. Therefore, be sure to think about how to protect yourself. This could be a security guard, a panic button, or an alarm at the entrance.
Think over an advertising campaign
Bright banners, posters, outdoor advertising. You can make a video about your office and put it online.
Before the opening, it is best to hold a real celebration with a quiz and distribution of prizes. Don’t be stingy, because in order to attract customers, you need to make sure they know about you.
