Pawn Stars: You can't pay out in Gold?

[cesariojpn]

If you haven't seen it, or were ignorant of it, a guy tried to sell a 1932 Lincoln KB Convertible V12 to Rick and the Old Man on Pawn Stars for gold. (Jump to 5:45).

http://www.history.com/shows/pawn-stars ... y-the-book

Interestingly enough, Rick claims that he is prohibited from paying out in Gold. To "circumvent" this, he pays the guy in cash, then after the guy "requests" Gold, then we have the gold payout. Anyone care to chime in what line of reasoning Rick is thinking?

And interestingly enough, is this analysis of the transaction correct?: http://community.history.com/topic/41327

Bluestab 06/08/11 13:32:39

I'm going to assume Phil was wanting full market value of gold (95k). If they were to give him what they buy gold at (30%) then he'd have come out better selling for cash money homey. Even devalued, 95k in dollars is worth more than 31k in gold. At face value, I'm fairly certain they went for 95k at that day's current gold rate. As far as the 5k he should make that back if gold continues to rise. They never give the seller what they want. In fact, they usually counter with 35-50% of what they want. At the same time, 5k is still less than what an auction fee would run....assuming he could get 100k bid for it. And yeah, Rick sold the gold for more than he paid for it. Most places buy scrap at 30% of the current rate so even at the most up to date price he's still only has around 32k in the 95k he gave the guy. Smart as hell in my opinion. Rick buys a car for 32k and Phil walks away with 95k worth of gold. It's like found money for Rick while Phil is still getting what he wanted.

[AGCoinHunter]

My bet would be something to do with taxes. If you trade an item for gold on hand, there is no record of the transaction I am sure the tax man wants you have to pony up for the sales tax.

[walt2727]

Similar thing happened to me last year here in central FL.
Converted numismatic coins to bullion coins and the coin dealer had to write up a purchase ticket and then a sales ticket.

[Market Harmony]

My best guess is internal bookkeeping. It's easier to show a purchase separate from a sale. It's a wash any way you spin it, but it is just easier to account for it with 2 entries than it is for 1.

[Mossy]

Yup. Taxes.

I doubt it's a legal problem, although a ticked off book keeper might end up arrested for beating someone over the head with a calculator.

[kidman232]

this episode just happened to be on again tonight. looks like the old guy is up about 20K on his deal with rick at spot prices

[njoElec]

I would NEVER do business with pawn stars. I see too many people on that show getting ripped off.

[cesariojpn]

I would NEVER do business with pawn stars. I see too many people on that show getting ripped off.

Someone doesn't understand the concept of selling items to a business.

[tractorman]

I wouldn't say that. Rick is in a position where he can pretty much pick and chose what he wants to double his money on and he's preying on the idiots. I saw one where he bought a Canadian (I believe) gold coin that they all agreed brings $4000 in an auction, and he got it for $2500. Hasn't that poor sap ever heard of eBay? I wouldn't ever sell anything to Pawn Stars either, its not because I don't like them, in fact I do, but I know way too much about the value of my possessions than they would ever deal with.

[cesariojpn]

I wouldn't say that. Rick is in a position where he can pretty much pick and chose what he wants to double his money on and he's preying on the idiots. I saw one where he bought a Canadian (I believe) gold coin that they all agreed brings $4000 in an auction, and he got it for $2500. Hasn't that poor sap ever heard of eBay? I wouldn't ever sell anything to Pawn Stars either, its not because I don't like them, in fact I do, but I know way too much about the value of my possessions than they would ever deal with.

On the flip side, people who sell to a Pawn Shop have the option to refuse the offer, try to haggle, and if they can't come to an agreement, they can just leave. He's not forcing them to accept. People only accept because it's fast cash in their pocket, and many don't want to take the effort to make more money for themselves.

[BlackOut]

I wouldn't say that. Rick is in a position where he can pretty much pick and chose what he wants to double his money on and he's preying on the idiots. I saw one where he bought a Canadian (I believe) gold coin that they all agreed brings $4000 in an auction, and he got it for $2500. Hasn't that poor sap ever heard of eBay? I wouldn't ever sell anything to Pawn Stars either, its not because I don't like them, in fact I do, but I know way too much about the value of my possessions than they would ever deal with.

agreed they could get a lot more of ebay, but I am sure most of these people are needed quick money, especially in vegas. If it were me, I would figure out a different way to go.