When I think of the word ‘Collector’, I imagine back when I was a teen, everyone had sports trading cards, there were shops that sold them, they had all sorts of signed gear for sale. Like-wise you might imagine someone who has a basement full of mint-condition comics. Yet it should not come as a surprise that the rich like collecting expensive things. Not only that but collecting things that go up in value. When it comes to collecting, here I am talking about luxury items, watches, antiques and, of course, artwork jewellery.
If I know a 2012 stainless steel Rolex Daytona can sell for a certain amount, I see it for sale for less than that, you know you have made a profit from it in the purchase. A lot of collectors jewellery traders make a lot of money buying from the public at auctions other events where their knowledge is greater than who they are buying from. This is why you should always know the value of your good before selling them.
Imagine you are a collector or a trader in luxury watches, you have been offered an item, you know that it is undervalued. There are many reasons for this, often, the person doesn’t have the contacts you do can’t obtain the same price. They want less profit just free up funds. They have had this item for years no longer value it aesthetically. If you had to get £20,000 in 24 hours, could you? Would you know what to do?
This is why collectors love pawnbrokers develop a relationship with one as a part of their business model. They need to have someone they can call pawn some other items from their collection to obtain the new one. You might be intending a quick sale, in less than a month, you have sold the item, repaid the loan redeemed your pledge.
Loan, Not Sell
One collector we work with is a well-known jewellery trader and, in the course of his trading, has built up a collection of around twenty luxury watches. Many of these were purchased many years ago have risen steeply in value.
He is offered good deals from the public during his business the course of the year. Rather than selling other pieces to buy more, he uses the collection or parts of it as collateral to lend against it thus add to it. He then gets a new watch to wear slowly pays it off as he feels, in a few weeks or months, but doesn’t have to worry about the hit to the bank account on the day.