9 important tips on how to hand over gold to a pawnshop without returning it

Financial difficulties in the family associated with a lack of money encourage people to go to pawnshops in order to hand over gold, exchanging it for banknotes. Pawnshops buy back valuables or accept them as collateral. This option may suit many people.

After all, not everyone has time to attend auctions or place advertisements on advertising boards in order to sell gold. However, before pawning gold in a pawnshop, it is important to first find out all the points associated with this kind of transaction.

Advantages and disadvantages of the decision made

The decision to transfer gold temporarily or permanently to an appropriate organization has its advantages and disadvantages.

The advantages include:

1. Possibility of quickly receiving money.
2. Minimum documents.
3. The contract is drawn up on the spot, without the need to collect various certificates and instructions.
4. If gold is transferred as collateral, then you can terminate your relationship with the pawnshop at any time. You won't have to pay any fines or fees for this. However, if due to the fault of the client there is a delay in payment or return of money (in the case of a secured loan), then the pawnshop has the right to impose fines. Most likely, they will be charged at double the rate.
5. When donating gold, its fineness does not matter.
6. The purchase can be considered as a place to store valuables if you need to go somewhere.

However, there are also disadvantages to this choice:

• pawnshops set low prices for accepted items;
• when valuables are given as collateral, the loan received will be small;
• the interest rate on the loan in this case is significantly higher than in a bank;
• The loan is provided for a minimum period - several days, weeks or months.

Drawing up a loan agreement

A person contacting a pawnshop needs to ensure that the contract is drawn up. Why is this so important? As a rule, things are handed over to a pawnshop in order to receive money. That is, a person takes property to an institution. This property becomes collateral. A certain amount of funds is issued against this collateral. If the client does not repay the loan, he will not receive the item back. It will be sold by the pawnshop.

However, it is possible to obtain the return of an item only if there is confirmation of an application to the pawnshop. This confirmation is the loan agreement. It also indicates the loan amount that needs to be repaid. It is beneficial for a person that the amount to be returned is fixed. Otherwise, the pawnshop may request a larger amount.

The rules for drawing up an agreement are prescribed in Article 7 of Federal Law No. 196 “On Pawnshops” dated July 19, 2007, as amended on July 13, 2015. It states that property can be transferred for a period not exceeding a year. That is, throughout the entire 12 months a person can return his item back. The loan agreement, based on paragraph 2 of Article 7 of Federal Law No. 196 , is drawn up in writing. It receives its legal force only when the property has already been transferred to the pawnshop. The content of the agreement may vary. It all depends on the needs of the parties to the transaction. However, it must contain essential conditions. They are listed in paragraph 3 of Article 7 of Federal Law No. 196 :

• Name of property.
• Amount of assessment.
• The amount of the loan issued.
• Loan interest.
• The period within which the client must repay the loan.

Registration is completed with the issuance of a deposit ticket. The second copy of the paper remains at the institution. A ticket is a strict reporting form. Its form is established by the Government of the Russian Federation. The form of the document is stipulated by Order of the Ministry of Finance No. 3n “On approval of forms” dated January 14, 2008. In particular, it can be found in Appendix No. 1 to this regulatory act.

The ticket indicates this information, based on paragraph 5 of Article 7 of Federal Law No. 196 :

• Name and address of the pawnshop.
• Borrower's full name, date of birth and citizenship.
• Passport details.
• The name of the thing and a description of its characteristics that allow the property to be identified.
• The amount resulting from the valuation of property.
• Interest rate.

The ticket states that if the loan is not repaid, the item will be sold. It must also be stated in it ( clause 7 of Article 7 of Federal Law No. 196 ) that if an amount exceeding the loan amount was received during the sale of property, it is transferred to the original owner of the thing.

FOR YOUR INFORMATION! Clause 8 states that if the loan agreement is concluded with errors, it will be considered invalid.

How to choose a pawnshop?

Before handing over gold to a pawnshop without return or transferring it as collateral, it is important to rationally and carefully choose a pawnshop. You should never run to the first sale you come across. There is a big risk of running into scammers or shell companies that will disappear immediately after you come to get your valuables back.

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In addition, “dug up” information about different pawnshops will help you choose the institution that sets the highest price for the gold it sells.

In order to make sure that the pawnshop operates on an official basis, it would be a good idea to ask its employees for a license and a certificate of registration.

When transferring gold, the following documents will be required for registration :

• an acceptance certificate with the signatures of the parties and an imprint of the pawnshop’s stamp (if it has a seal);
• agreement in two copies;
• If a loan is issued, then the client is given a security ticket.

If possible, compare the price set per gram of gold by the Central Bank of the Russian Federation. Having calculated the difference, you can understand that pawnshops have considerable benefits from carrying out such operations to buy this kind of metal.

Who goes to pawn shops?

Vasily is a student at Moscow State University. He is 21 years old and studies world politics. A couple of months ago I pawned a cross with diamonds and a chain. “I issued a deposit in the name of a friend, I didn’t have a passport with me. Now I came to pay interest with him - almost two thousand rubles a month. Of course I will buy them back. This is a gift from my godfather, and it is dear to me,” shares Vasily.

He needed money to repair his car - he borrowed it from a friend for a ride and hit it. “I urgently needed a large sum, I basically had it, but it wasn’t enough, so I pawned the cross. My godfather doesn’t know about this, no one at home knows - I wouldn’t want to tell them that I hit the car,” explains the student.

Vasily learned about this particular pawnshop from a “colleague in misfortune” who, like him, had once crashed a car. But the young man is already familiar with this method of lending. About three years ago he pawned an expensive watch. I needed money to make a gift. “It was worth it,” the student recalls and immediately clarifies. “By the way, I bought them.”

He planned to buy the chain and cross right away, within a month. But this is the second time he has only paid interest on the loan. “Money is somehow quickly spent on other things, you just spend and spend. But next month I will definitely return the entire amount,” the student says, as if making a promise to himself. True, the voice lacks confidence.

The first pawn shops opened in France. They were founded in the 15th century by moneylenders from the Italian province of Lombardy.

Visitors to pawnshops can be divided into two large segments, explains Alexey Lazutin, president of the National Association of Pawnshops. These are clients who take out loans from pawn shops for urgent needs, and migrants.

“The former are the majority, but it is very difficult to somehow distinguish by gender or age: these are both young people and older people. Migrants, who according to various estimates now number more than 10 million people, often in our country can only use a pawnshop as an institution of financial inclusion,” he says.

Barannik classifies his users a little differently. Some of the most frequent clients are businessmen. “Small and medium-sized business executives aged 35-55 often use pawnshop loans. For example, the owner needs to pay wages tomorrow or the day after tomorrow or comply with some other agreements, but money from contractors is delayed. And then some of his personal belongings are put on bail. And when the funds arrive in the account, he will simply buy them,” says the pawnbroker.

Another type is women aged 20 to 50+ who pawn household valuables and jewelry. “They should not be sold, they are not ready to part with them completely. But they are used as a financial tool to get a loan,” describes the pawnshop owner.

By the way, an appraiser from another pawnshop, Mikhail, spoke about such a client.

– She is a realtor and she periodically needs money for a specific transaction in order to process everything. And when an apartment is bought, she receives her interest and buys the collateral from it. But, naturally, since our economic situation may be different, the money for the transaction may not be paid on time. Well, it begins - she comes, re-pledges the item, brings other jewelry, for the next transaction. Then he buys them back and brings them back. We have been a regular customer for two years now.

Mikhail has about half of these regular clients: “There are clients who have been pawning the same things for years. One of them brings two rings for five years. At my last job I was retired. He loved to drink, and every month on the twentieth he pawned his gold chain and bought it back from his pension. And so on in a circle.”

Another category that I had the opportunity to observe personally is not entirely typical, but interesting: a woman aged 50+, who, apparently, was engaged in jewelry in the 90s and has since kept a certain “compote” of products: “Rolex” and various jewelry with precious stones.

She left the office, where the appraisers were looking at her things, upset and hurriedly headed towards the exit. “We were not interested in these things for collateral, not for purchase - they are of low quality, outdated. Such products need to be handed over only by the weight of the metal,” one of them later explained to me.

There are also those who bring gifts from ex-husbands or boyfriends. “She still had some valuables and gifts in her hands. She comes to us to evaluate all this. And as an option, he either sells it or mortgages it,” Barannik continues to list.

I came to the pawnshop twice. The first time I talked to the owner, I couldn’t find any clients then, the leather sofa and armchairs were empty. A few days later she came again and was “on duty” for about four hours. During this time, four people brought their products or, on the contrary, money for using the loan.

According to Pavel Barannik, influxes occur on Monday and Saturday. In general, here, like everywhere else, there are hot periods - in December, before the new year, at the end of spring and beginning of summer, when the holiday season begins, and in September, when it ends, the next wave comes. As one of the pawnshop employees clarified, on especially busy days 10-15 clients come.

Factors affecting cost

Perhaps it will not be a discovery for anyone that all pawnshops accept gold at a much lower price than its real value. But this is a kind of payment for getting money quickly.

In addition, pawnshop workers will not pay attention to the appearance of the product - scuffs, scratches, lack of stones.

Information about the cost per gram of gold in a pawnshop can be obtained from Internet resources on official websites or during a personal visit to the institution. The price depends on the quality of the metal, its sample, and weight. The average cost today is set at 500-1500 rubles per 1 gram of gold. If 999 purity gold is surrendered, its cost will be 60-80% higher than the rest.

Most pawnshops accept gold for scrap and then sell it at a more favorable price. In this case, jewelry companies also benefit because they do not have to pay taxes and other deductions for purchasing scrap from pawnshops.

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Large pawnshops, which have been positioned on the market for a long time, work with such companies without intermediaries, directly concluding agreements for the sale of scrap.

How is property received?

First, the pawnshop employee is given a passport. Then he inspects the brought property. If the client brings jewelry, it is checked for authenticity and compliance with the sample. Weighing of values ​​is carried out on the basis of paragraph 11 of Government Decree No. 444. If the client agrees with the assessment made, he receives money.

FOR YOUR INFORMATION! The assessment is carried out on the basis of paragraph 5 of Resolution No. 444. It states that the assessment is carried out by agreement of the parties.

You need to make sure that the pawnshop gives you a receipt. The obligatory nature of its preparation is stipulated in paragraph 13 of the Resolution. The receipt contains this information:

• Company name or initials of the individual entrepreneur.
• Full name of the person renting the property.
• Deliverer's passport details.
• Product name.
• Name of precious metals, their purity and mass.
• Product weight.

IMPORTANT! Paragraph 14 of Government Decree No. 444 states that valuables accepted by the buyer will not be returned. However, this applies specifically to jewelry.

How to record property provided by clients as collateral

In order to prevent work at a loss, the pledged items must be highly liquid. Therefore, the main types of collateral are jewelry made from expensive materials such as gold, platinum, and silver. When valuables are not purchased by clients, they can be sold in bulk to procurement companies as scrap.

The state strictly regulates everything related to the handling, accounting and storage of jewelry. If pawnshops do not comply with the established procedure, they cannot avoid administrative liability. An accountant working with “jewelry” needs to keep records of it as part of the rest of the goods pledged, both by weight, and by quality, and by cost. A complete census of precious goods should be carried out twice a year.

The movement of inventory items, which are handed over by clients as collateral, is reflected in accounting as follows:

1. Dt 002 or 008 - reflects the value of the pledged property after its assessment.
2. Dt 58 or 76 Kt 50 – a sum of money was transferred to the client against property collateral.

The pawnshop cannot become the owner of those items that clients leave as collateral, even if they did not buy them back on time. Collateral property should be accounted for separately from the property of the organization itself.

Accounting for the costs of insuring collateral left by clients

Pawnshops need to insure property that the client provides as collateral or leaves for storage. This is produced:

• in favor of the client acting as the borrower;
• at the expense of the pawnshop.

The collateral is insured for the entire period while it is in the storage facility of a commercial organization. Insuring such items based on the full value of their valuation is a mandatory expense. Costs are taken into account in account 20. To do this, you should open a sub-account called “Costs for storing collateral.” Payments are included in the cost of services provided by the credit institution.

Taxation of pawnshop activities

Payment of taxes is carried out by pawnshops in the general mode. They cannot introduce simplification. UTII is also inaccessible to them, because organizations provide household services to the population. Taxation has certain features.

Payment of VAT when issuing loans

Depending on the type of specific work, the issue of paying VAT is decided.

• Tax is not paid when providing short-term cash loans to clients.
• Revenue for services provided for the safety of inventory, advisory or information regarding the assessment of collateral should be subject to VAT in the generally established manner.
• The sale of property pledged is another type of pawnshop activity. The VAT tax base is determined as follows:

The amount of the claim against the client-mortgagor is subtracted from the income received by the pledgee. The result is subject to VAT only when it is not returned to the client.

Income tax - how it is calculated

The amount of interest on debt obligations is non-operating income received by the organization. They act as the basis for determining and paying income tax and are recognized as having already been received:

• on the last day of each month;
• on the date of full repayment of the loan.

Income from services provided for the storage of expensive inventory items is also taxed. How exactly its amount is recognized depends on the period of the contract. Revenue from consulting services provided is recognized on the date of acceptance by the client. If inventory items are handed over for long-term storage (more than one reporting period), the amounts of income received are independently and evenly distributed.

Income from the sale of property not purchased by the client becomes such only after three years. And then, provided that its former owner did not turn to the pawnshop for the proceeds due to him. Cash converted into pawnshop income is classified as non-operating income. If, after unclaimed inventory items are sold and a loss is incurred, it is recorded as non-operating expenses and is not recovered from the debtor.

Types of services	VAT	Income tax
1) Short-term loans	–	+
2) Preservation of inventory items. Consultations and information provision	+	+
3) Sales of inventory items (unpurchased)	+	+

Storage costs are subject to VAT. The accountant should carry out separate accounting of transactions, the amounts for which are subject to or are not subject to VAT.

Five most frequently asked questions

Question No. 1. How is the amount of interest on money lent calculated?

Interest should be accrued from the next day after the loan is issued until the last day of its repayment, inclusive. But the contract also allows for a different procedure. For example, you can provide a fixed percentage.

Question No. 2. The situation when a client does not redeem the item he pledged occurs frequently. Will it be enough to state in the order on the organization’s accounting policy that after the end of the period for returning the collateral, it is necessary to stop accruing interest?

This should be stated not only in the order on accounting policies, but also in the ST. The basis is the current general rule, according to which interest can only be accrued up to and including the day the loan is repaid.

Question No. 3. When does the loan agreement come into force?

It begins to operate from the very moment when the citizen received the money, and the organization received the pledged property.

Question No. 4. What document is used to document the loan?

The client receives a ST, the form of which is standard. One more copy remains in the organization.

Question No. 5. Does the amount of unclaimed property fall under the concept of UTII?

No, because the organization is not its owner.

What is the difference between a pawnshop and a purchase?

A pawnshop is a credit institution that has the right to issue loans. Buying or consignment stores can only sell clients' items - without entering into a credit relationship. There they can immediately buy the client’s goods, or they can give the money only after sale. This is the most important difference. The activity of purchases is not regulated in any way by the Central Bank of the Russian Federation; organizations do not have a license for lending activities.

Another difference is that buying accepts almost all types of goods. But a pawnshop that accepts everything is rare. Pawn shops often specialize in certain items. For example, on jewelry or household appliances.

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Features of receiving luxury jewelry

If you are planning to pawn an expensive piece of jewelry with diamonds, and at the same time count on an adequate amount, then it is worth spending time searching for a specialized institution that purchases luxury jewelry. This task is not easy, because there are few such organizations.

However, in standard pawn shops, jewelry will be valued only based on the weight of the materials from which it is made. With a high degree of probability, they will not take into account the rarity and purity of the stone, as well as the fame of the brand that made the jewelry. As a result, you will receive no more than 10% of the actual cost of the product.

In specialized pawnshops that work with valuable jewelry, the value of the product is assessed according to many criteria . In this case, factors such as:

• Size of stone . Products with large stones are priced more expensive. That is, you can earn more for a ring with one large diamond than for a product with many small stones.
• Quality and color shade . Pure colored diamonds have the highest value.
• Elite brand . Each piece of jewelry has its own manufacturer, but we are talking about the luxury of the brand. As a rule, these are foreign manufacturers. However, each pawnshop has its own list of preferred jewelry brands, and this information should be clarified in advance.
• Aesthetic value . The originality of the jewelry design is of considerable importance when assessing. This is especially true for antique jewelry. Earrings from a limited collection will be valued significantly more than similar products of a standard design.

Reference! In general, handing over precious stones to a pawnshop is not very profitable for the client, however, in specialized institutions that accept exclusively elite jewelry, you can get a very decent price for your jewelry - up to 70% of the cost.

Tip 1. Choose a pawnshop

Despite the fact that over the past 2-3 years the pawnshop market of the Russian Federation has become more civilized and cleared of openly fraudulent schemes, not all financial companies are equally reliable. We recommend working with network companies that have more than one branch to serve clients - they care about their reputation, constantly improve the quality of service, and ensure the maximum level of security for operations, property and personal data of clients. It is also better to avoid the services of pawnshops with a short history and carefully study the information on the corporate website - the presence of permits and licenses is a guarantee of the legality of all operations.

Restrictions

Pawnshops do not accept products and items prohibited by law as collateral, even if they have jewelry or other value. For example, it is prohibited to pledge:

• poisons;
• weapon;
• things with high background radiation;
• medals, orders, other signs of military valor;
• jewelry that is included in a special list approved by the state;
• food products;
• cultural and historical values, in respect of which the authorities prohibit the use of collateral to maintain state security.

According to Russian legislation, pawnshops do not have the right to accept real estate as collateral: houses, apartments, dachas and other buildings. They are also prohibited from doing business. Only issuing loans secured by valuables and consulting activities.

It is also prohibited to enter into transactions with minors. The collateral property can be collected either by the citizen himself who completed the transaction, or by another adult person with a notarized power of attorney.

Pawnshops cannot pawn items pledged. Institutions are also prohibited from using or renting out existing mortgages. In case of damage to the property pledged, the pawnshop is obliged to compensate the cost of the damage caused.

Funds issued by pawnshops can be used by the client for any purpose. All restrictions at this point are unfounded.