One Thousand Ways to Make Money by Page Fox

941. PAWNBROKERS’ PROFITS.--The pawnbrokers’ business has been largely

given up to the Jews, but there is no good reason why it should be. Pawnbrokers make immense profits. The amount of the loan is not above one-third the value of the article. The goods are frequently not redeemed. Then there are the pawnbrokers’ sales, at which the articles command at least one-half their value. The pawnbroker gets ten per cent. or more on money loaned, and if the goods are sold he gets the difference between one-third and one-half values; that is, if an article be worth $100, the loan is $33.33-1/3. The amount realized at the sale is $50. Pawnbrokers’ profits, $16.66-2/3. This is the reason most pawnbrokers get rich.