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View Poll Results: Would a "welfare community" that provides fast cash in emergencies be a useful set-up
No, this is absolutely useless 0 0%
Yes, community buys at spot price 8 50.00%
Yes, pawnshop style collateral "loan" system 8 50.00%
I'm too dumb to be bothered 0 0%
Voters: 16. You may not vote on this poll

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  #11  
Old 17-04-2012, 11:43 AM
freeier freeier is offline
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i think you have to define exactly what is the difference between

- selling at spot (does this involves the rights to buy back at spot again later)

- borrowing with pawn collateral (what is the collateral level, etc).


you might say its premature but the definition of these levels are important.
there are actually two counterparty risks.. if the pawning is done at too low level, the lender can actually take off and not honor the buy back option held by the pawner as well..

overall honestly not a simple solution.

so just sell it off might be better. at the best price being offered.
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  #12  
Old 17-04-2012, 12:58 PM
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lim lim is offline
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I think this is not a good system as the group of people involve might not be able to "eat" so much metals ..
Also if this is among friends , even worse .. when chasing for 1% interest rate . I am looking at another perspective of course in this case .
The best is just let go of the metal to the highest bidder who does not take advantage of your situation. Be fair in life and life will be good to you .

Good breed Good .
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  #13  
Old 17-04-2012, 08:14 PM
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anlok anlok is offline
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The scheme actually encourges "pawning rather than selling. Similar to pawnshops, interest is at 1% per month. But we take in based on spot whereas Pawnshop goes below spot.

Benefits of Lender

1) Lenders have the choice to lend or not. Most probably when they lend, they are already aware of the "Risk" Pawner might not redeem & they are comfortable at coverting Pawn to Sell at the current spot price. In simpler terms, the Lender might be looking at buying from dealers even without the opportunity of Pawners approaching.

2) "Pawn" period is probably 6 months. If Pawner redeem the PM, Lender earns the 1% interest. If Pawner gives up, the Lender owns the PM at the spot rate they are already comfortable with, thus the movement of spot is Not a big consideration to Lender cos as stated in Point 1, they are already looking at buying with or without the Pawner's presence, so spot movement risk is calculated.

3) Lender can use the 1% profit per month ( assuming Pawner redeem ) to offset his own purchase from Dealers.

Benefits of Pawner

1) They get higher loan compared to Pawnshops cos we take in at Spot.

2) In the event they can't afford to redeem, they minimise loss as they are considered "selling" at spot.

3) Pawners pawn to obtain cash first while using the "pawn" period of 6 months to source for good offer (definately premium over Spot by at least 10%) for their Gold/Silver coins/bars which they might have bought at high premiums.

I believe Pawners won't sell on purpose as they could easily sell at Spot + 1% to private buyers.
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Last edited by anlok; 18-04-2012 at 10:18 AM.
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  #14  
Old 17-06-2012, 05:38 AM
Koala Koala is offline
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Default There should be a ready place for selling or pawning silver just like gold

Pawnshops for gold have existed for ages, its time that silver has such pawnshops too for those of us in need of cash in emergency situations, esp if silver is more rare than gold, I don't understand why is it that Sgp do not have such ready places for selling or even pawning?

Selling on ebay or GCA or even selling back to the respective places we bought the bullions are good, but in emergency situations, you cannot do that. We desperately need a ready place for us to unload silver just like for gold.
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  #15  
Old 17-06-2012, 08:49 AM
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Bear in mind that different operating models may have different legal implications and licensing requirements.
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  #16  
Old 17-06-2012, 11:42 AM
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anlok anlok is offline
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Quote:
Originally Posted by Koala View Post
Pawnshops for gold have existed for ages, its time that silver has such pawnshops too for those of us in need of cash in emergency situations, esp if silver is more rare than gold, I don't understand why is it that Sgp do not have such ready places for selling or even pawning?

Selling on ebay or GCA or even selling back to the respective places we bought the bullions are good, but in emergency situations, you cannot do that. We desperately need a ready place for us to unload silver just like for gold.
I started this thread quite sometime ago to consolidate views. This scheme is already in place within my Biz Community since then. Bro Chef is planning to start something similar to mine but more sophisticated & on a much bigger scale.
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  #17  
Old 19-06-2012, 09:24 AM
Koala Koala is offline
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Chef and anlok
Serious?! Wow! Seems like silver is going to have a ready market pretty soon! This must be good news to all silver enthusiats.
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  #18  
Old 20-06-2012, 11:07 AM
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Quote:
Originally Posted by Koala View Post
Chef and anlok
Serious?! Wow! Seems like silver is going to have a ready market pretty soon! This must be good news to all silver enthusiats.
Chef will be the one to save the Silver Community. Apparently within my small Biz Circle, only Gold is "trusted".
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  #19  
Old 17-07-2012, 01:29 PM
messagermanxxoo messagermanxxoo is offline
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Default Welfare Community

I am a buy and sell man. The at the spot price is more attractive to me.
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