Whats the difference between coins shops vs pawn shops? Before you buy or sell gold or silver bullion coins, bars, ingots, or jewelry, it is important to know the difference between coin shops and pawn shops.

History of Pawn Shops

Both pawn shops and coin shops have been around for thousands of years. Pawn shops first emerged around 3,000 years ago in Ancient China. Early pawn pawn shops where established to allow short term credit to Chinese peasants. In Ancient Greece pawn shops evolved into credit sources helping small merchants establish shops. In Europe, during the 14th and 15th century, pawn shops started offering loans outside of lower class peasants and merchants. The interest early pawn brokers charged varied greatly. When the pawn business gained popularity during this time, many pawn brokers faced the problem of  selling stolen items. As a consequence, the Pawnbrokers act of 1872 was established. This act protected pawn brokers from criminal prosecution for unknowingly selling stolen good, and also regulated the legal amount of interest a pawn shop could charge. Today pawn shops exist throughout the world in every country

History of Coin Shops

One could argue that the first coin shop started when the first coin was minted.  The first mint was formed in Lydia in 7th Century BC. Since then, people have worded coins for the intrinsic value of gold or silver they contained. Coin collecting gained popularity during the Renaissance. Kings, Queens, and wealthy aristocrats started collecting coins as a sign of wealth and prosperity. The middle class started to emulate the upper class and followed suit in their pursuit of collecting coin. Consequently, the study of numismatics emerged. This is the study of rare coins and collectables. Today coin shops exist throughout the world, and have risen in popularity after the world adopted a global fiat money system. People seek out coin shops today to trade in precious metals and bullion coins or bars.

Concluding Coin Shops vs Pawn Shops

Who wins in the battle of coin shops vs pawn shops. Pawn shops are about charging interest on loans. Coins shops are about investing in gold and silver bullion coins, bars, or ingots. Pawn shops thrive off of short term loans to people in financial trouble. Coin shops specialize in trading precious metals gold or silver bullion, jewelry, and numismatics. Pawn shops specialize on loans of anything with value. On the other hand, coin shops specialize in trading precious metals.