1) Pledged gold (owner failed to reclaim) for options ??? Never heard ? Can the successful bidder used as pledged gold again for loan? My opinion Gold is a valuable tangible assets a bit resemble to property. 2) I opine loan can only granted certain percentage of the pledged gold, eg. 30%. So, is not a loss to the company in the event of default payment.
collateral from customers r guaranteed by gold a valuable asset now! better interest than banks n less hassles for customers! money n gold changing hands r quick!
stay tune next week for more swing! trade confidently!
It's a good stock. Co has covered themselves in every way. Profitable smart business always in demand !! . Depends on your style Short Term or Long Term,! Think some bigger financial institutions has now probably bought stakes in this stock. Watch announcements..
Ever think the loan given is so safe cushioned by collateral gold (30% of gold value). Interest on monthly charges unlike Bank per annum basis. Conditions for good performance - 1) posses vast customer base 2) good management - no hanky panky.
As the company does not give out unsecured or personal loan, most of its lendings are said to be safe. No raw materials, no inventories, only high premium securities are accepted. As this kind of business falls under Pawnbrokers Act in Malaysia, not anyone able to operate a legal pawn broking shop as it requires a licence.
After these years, pawn loan still one of the favorite financing option for Malaysian. Why? It’s an easier and faster way to get quick cash by compared to get a loan from a bank.
8899EL8899, Pawn shop is much better than Hire Purchase. If Hire Purchasers defaulted, the finance companies will have to repossess the lorries, cars or motorcycles or whatever until no parking space to keep them. Sometimes they have to sell of those things at a loss. Sometimes may sell with a profit if lucky. In the case of pawn shop it is much simpler. You don't need a big space to store the gold chains, rings or even gold bars pawned as loans. If the borrowers could not redeem the items, the pawn shops just auction them off. Normally pawn shops will make profits because they lend out at a very low margin unless price of gold drops drastically and unexpectedly. Sorry I am not a pawn shop owner. I have no licence I don't know exactly how to do it especially the valuation of gold. Hope to learn from PAPPAJACK. Haha!
8899EL8899 Another important aspect I want to learn is how to differentiate between genuine gold and fake gold. Don't know how much they will charge for the teachings? Just wonder whether PAPPAJACK can set up the schools all over our 13 states so can cater more jobs for those graduated with a certificate. Just my dream. Hahaha !
In time of war, gold is the most trusted medium of exchange for goods and in modern world gold is used for backing value of currency by placement of gold in world bank.
PAPPAJACK is a pioneer in the Malaysian Share Market that a pawn broking company is listed. PAPPAJACK will be the most popular and prominent household name in Malaysia.!!!
According to my eldest son, one of his good and bosom friends is a pawn broker. His pawn shop was originally set up by his father with initial capital injection of about RM10 Millions join venturing with family members, friends and relatives, with his father having a major share . Now their business is flourishing and raking in handsome profits . They have opened up branches one after the other. Hope that one day they too will apply for IPO. But I cannot reveal who he is ! No matter how ,Rome is not built in a day. They will not be able to achieve success without putting in any efforts. . They have to put in a lot of hard work and face a lot of challenges. Having said all that is just for your knowledge and information. Bearing in mind that this not a buy or sell call. Any decisions to buy or sell are entirely yours. So please don't put the blame on anyone. .
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
henry888
2,247 posts
Posted by henry888 > 2022-04-09 09:53 | Report Abuse
1) Pledged gold (owner failed to reclaim) for options ??? Never heard ? Can the successful bidder used as pledged gold again for loan? My opinion Gold is a valuable tangible assets a bit resemble to property.
2) I opine loan can only granted certain percentage of the pledged gold, eg. 30%. So, is not a loss to the company in the event of default payment.