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Pawn Stars Melts $50k of Gold & Silver Coins?!

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 Posted 03/03/2014  10:19 am Show Profile Bookmark this topic Add CelticKnot to your friends list Get a Link to this Message

Here's an article that combines two of our favorite topics: gold coins and Pawn Stars. Unfortunately, it also involves two of our least favorite topics: coin theft and melting of specimen coins.

http://www.8newsnow.com/story/24833...us-pawn-shop

Gold & Silver's official statement:

http://www.8newsnow.com/story/24833...er-pawn-shop

I agree with the former owner that it seems fishy that Gold & Silver would simply melt those coins when the numismatic value purportedly far outweighed the bullion value. So I imagine that one of the following happened:

1. The former owner vastly overestimated their worth/quality/grade and G&S melted the coins because they weren't worth anything more than bullion anyway.
2. G&S wanted to legally avoid a $12k loss by melting the coins.
3. G&S wanted to (legally?) avoid a $12k loss by saying the coins were melted and ultimately doing something else with them.

Or maybe a little of all of the above or maybe something else entirely that I haven't considered. In any case, that loophole seems like it needs some attention.

I apologize if this has already been posted but I didn't see anything recent about it here in the numismatic crime forum.

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 Posted 03/03/2014  11:07 am  Show Profile Bookmark this reply Add denco7 to your friends list Get a Link to this Reply
I read some other articles on it. The LVPD have said that Gold and Silver Pawn obeyed the law. It sounded to me like, the guy had over paid for some bullion coins and that he was basing his estimates on what he paid, not what they were worth. Like when someone buys a SEGS MS70 ASE for $90. To them, it was a $90 coin that got stolen, to the rest of us, it is worth $21.50.

These guys make millions per year from that shop. Their money is all based around their show and the shop. Does anyone really think that the Old Man or Rick are going to risk a multi-million dollar empire on a couple of thousand dollars?

All transactions in the store, in all the pawn shops that I have been in, are video taped, logged on a stolen item data base, require positive gov't issued ID and a signature.

As far as melting goes, where do you think they get the silver for the $70 Old Man rounds ?
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 Posted 03/03/2014  11:15 am  Show Profile Check nlp coins's eBay Listings Check nlp coins's eCrater Listings Bookmark this reply Add nlp coins to your friends list Get a Link to this Reply
If G&S finds it economically prudent to melt the coins they buy and cash in on the bullion value after wasting the cost of utilities, I think they need to tweak their business plan. That whole story wreaks of corruption. I wouldn't be surprised to see those fungible coins down the street in another B$M. nlp
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 Posted 03/03/2014  12:58 pm  Show Profile Check Libertad's eCrater Listings Bookmark this reply Add Libertad to your friends list Get a Link to this Reply
That's the problem with gold. It's a bit too liquid. If you make a gold statue with the meaning of life engraved on it, somebody out there will find a reason to melt it.

That's part of the trick with these gold places. They can have some junky coins and scrap in reserve to send to the refiners with the exact weight of what you have, then send it out to get paid. The evidence disappears and you still have something valuable. It's really the perfect criminal form of money - if you think about it it's very ironic that thieves steal "legal tender" and not make up their own form of pirate currency.
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 Posted 03/03/2014  2:10 pm  Show Profile Check CoinsKelly's eCrater Listings Bookmark this reply Add CoinsKelly to your friends list Get a Link to this Reply
From the article

First day: 7 coins for $2600 ($371.43 per coin)
Second day: 25 coins for $9300 ($372.00 per coin)

The article does not mention the number of coins for the third sale. While G&S numbers differ slightly, I have a tough time believing that they would melt valuable coins for bullion or that they would risk their store for a measly $12,000 (well measly to them).

If G&S sold the coins, wouldn't they have a record of that transaction that the authorities could check out? If that is true and there is no record of sale, then the owner may be over estimating the current market for his coins and they were bullion or G&S managed to sell them quickly under the table. I just do not see them throwing valuable coins into the melting bin to cover themselves.
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