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Big dog

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Here at Kamaaina Loan And Cash for Gold, we often brag about being Maui’s biggest pawn shop. But that’s big-frog-in-small-pond talk. DFC Global just announced it had bought a chain of pawn shops in Romania that will bring its total to  1,457.

Its press release says Romania has a long history of pawn loans, but the shops are quite small. 32 shops did a turnover of $9 million,  That’s less than $300K per shop. Even Maui’s smallest pawn shop probably does more than that.

DFC Global Corp. is a leading international diversified financial services company serving primarily unbanked and under-banked consumers who, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions.

 

Romanian pawn shops are similar to Maui pawn shops in that they primarily lend or buy gold, usually jewelry. However, they also make auto loans, which some pawn shops in America do, although not so much

 

Pawn 101: We buy (almost) anything

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So when a customer walked in with a box of old cannon balls and shells, Kamaaina Loan shelled out, so to speak.

Old ordnance has collectible value, but it takes an expert to identify the many varieties.

The collection we have is from the Civil War period and includes a Parrott shell (which was used in a cheap cannon that had a tendency to explode), some round shot and a mortar bomb filled with Minie balls (which are not balls but cylinders) rather than the usual round grapeshot.

As collectibles, cannon balls have the advantage of not needing gentle handling, unlike, say, Meissen china. On the other hand, shells, if filled with powder, can be dangerous. All ours are either solid cast iron or disarmed, so no worries.

In a pawn shop, you never know what will come through the door next.

 

An honest gold seller in India

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Bloomberg News has a story about T.S. Kalyanaraman, who shook up the gold jewelry business in India by putting pricetags on his products and teaching his customers how to test gold themselves.

Now he’s worth a billion (dollars not rupees) and is the first person in his state of Kerala to own a private jet.

India is the biggest market for gold. Brides are weighed down with gold jewelry, and it is considered auspicious to buy gold on religious holidays (often then presented to a temple).

“We don’t find it tough to sell gold; people love to buy jewelry,” Kalyanaraman said. “The only way to make your wife, sister or lover happy is to give them something that they love.”

In a separate Bloomberg story

Aishwarya Rai, a former Miss World and Bollywood star, is a spokeswoman for Kalyan Jewelers

, the government of India is raising the import duty on gold by 50% to help cover its current account deficit. The government feels it can manage this because the demand, and consequently the price, for gold has been rising, through good times and bad.

India, the world’s largest bullion buyer, increased taxes on gold imports to reduce a record current-account deficit and moderate demand for the precious metal that’s rallied for 12 straight years.

The duty on gold and platinum imports was raised to 6 percent immediately from 4 percent, Economic Affairs Secretary Arvind Mayaram told reporters in New Delhi yesterday. The tariff will be reviewed if imports moderate, he said. Gold climbed after the announcement.

Increased taxes may reduce gold demand in Asia’s third- largest economy after prices jumped 7.1 percent in 2012 as investors and central banks boost purchases. About 80 percent of India’s current-account deficit, the broadest measure of trade, tracking goods, services and investment income, is due to gold imports, according to the Reserve Bank of India.

And they say there’s no ham in hamburgers

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News reports say horse DNA was discovered in beef hamburgers sold in Ireland and England. Up to one-third in one sample, according to the Los Angeles Times.

This reminds us of an old joke.

During the Depression, a restaurant was famous for its rabbit stew. Then came World War II and meat rationing.

A loyal customer continued to order the stew but he became suspicious. At length, he asked the chef if there wasn’t some change in the recipe. The chef said:

“I wouldn’t admit this to anyone else, but you’ve been my most loyal customer, so I’ll tell you. Yes, it’s true. Because of the rationing, we had to mix in horse meat with the rabbit.”

But, he hurried to add, “But only 50-50. One horse to one rabbit!”

 

Pawn 101: Fender’s Pawn Shop series

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Pawn shops don’t get a lot of respect — tell us about it! — but from time to time there are indications that some people appreciate what America’s pawn shops bring to the table.

Perhaps the most unusual nod comes from the Fender guitar company, which now has a “Pawn Shop Series” of new productions, described as  “guitars that never were but should have been,” and as homages to the more eccentric models the company introduced (in modest numbers) in the ’60s and ’70s.

Fender doesn’t come right out and say so, but apparently the company is acknowledging that sometimes the only place you really can get what you want is a pawn shop. You can’t always get what you want, but if you try sometimes, you just might find, you get what you need — in the pawn shop.

Somebody said that in the ’60s, we recall.

That headstock isn’t a mistake. It’s the Fender Pawn Shop Super Sonic

We have weird stuff for sale

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For example, a 1963 silver dime that was irradiated at Oak Ridge.

And why, you ask, would anyone irradiate a dime? Is it still radioactive?

According to Oak Ridge Associated Universities, the dimes were a public relations stunt designed to show visitors how neutron activation created valuable radioisotopes that are used in medicine.

Silver was chosen because, in those days,  people had silver coins in their pockets, and neutron-irradiated silve-109 changed to radioactive silver-110.

Silver-110 has the convenient property of a short half-life — 22 seconds.

Visitors had their dimes put under a Geiger counter to show that they had, indeed, become radioactive. But by the time the tour was over, the radioactivity had declined to almost undetectable levels.

Amazingly, the silver-110 had also transmuted into another element, cadmium-110.

The lab encased the radiodimes in plastic. They are not particularly rare; about 250,000 were irradiated.

These coins are purely collectors’ items. They are no longer radioactive and have no practical use.

Our dime is priced at $9.99. Since it is 90% silver, its metal content is, at today’s price, worth around $5. The other $5 or so is curiosity value.

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=320980036292&ssPageName=STRK:MESE:IT

An irradiated dime