When is a chip set too valuable? (1 Viewer)

[MrCatPants]

Has anyone pawned a set of chips with another member publically?

I was thinking about a similar scenario - more a rental with a deposit. But I think it's too tempting for some/ too much risk. You could probably do a "set of the month" club but everyone would likely have to deposit like 5 grand to make sure bad acting (even among established members) is really discouraged.

 

[Burke]

What is the risk though? Both lender and lender come to an agreed upon pawn price and a reasonable time/repurchase price (interest)? Usually loans are given at less than the sale value.

If the original owner rebuys the set at the agreed upon markup then everyone is happy. If the original owner does not rebuy the set then the new owner just got the chips they were pining at a (likely) reduced price. Again everyone is happy.

I guess the risk is that the person providing the loaned cash then resells the set at a higher value before the duration of the loan ends?

 

[upNdown]

This might be moot because I’ve already established that there are some chipsets that are too expensive for me to justify owning. But there’s never been a chipset I wouldn’t put in play, and without regard to the players. Poker chips are for playing. That is self evident to me. If you own chips that you’re afraid to let people touch or splash or shuffle - I just can’t relate to that. It’s like owning an apple you can’t eat.

 

[BarrieJ3]

One other way of looking at something.

I've put custom samples together for years. Many of which are obtained via auctions bidding top dollar against the other 4-6 sample collectors.

I have 46 cases of samples. That's $700 just in cases. 46 cases would mean 276 samples. Let's say for simplicity samples are $35 shipped, that's easily over $10k on that wall.

Historically I've had someone here or there send me their sample gratis, rare. Recently, I've had more folks reach out and offer a sample of their own, and I so genuinely appreciate them, their samples are all that more meaningful to me. So now I have this mix of mostly paid top dollar for samples starting to mix with some fantastic fellow chipper gifts.

While I wouldn't have previously ever planned to sell, I knew that what I owned had a value attached, much like a keeper set. But it's value now is literally $0. Lol it has no value because it's literally unsellable, it's become a group project. I can't gather these together and then sell them one day.

So, for me, my sample chip collection is too valuable. I would never spend anywhere near this much on samples of chip sets, no chance. But, given time, lol I accidentally did. Come see me in 4 years when I've accidentally doubled it.

 

[MrCatPants]

What is the risk though? Both lender and lender come to an agreed upon pawn price and a reasonable time/repurchase price (interest)? Usually loans are given at less than the sale value.

If the original owner rebuys the set at the agreed upon markup then everyone is happy. If the original owner does not rebuy the set then the new owner just got the chips they were pining at a (likely) reduced price. Again everyone is happy.

I guess the risk is that the person providing the loaned cash then resells the set at a higher value before the duration of the loan ends?

Or keeps it. Let's say inflation runs rampant and chips go up in value again notably over another couple year period. People staring at a serious gain are more likely to find their gentleman's agreements unnecessary. Probably 98% of people would work this arrangement well without outside influence. If the chip set went up and ended up say 5K over the pawn price? I don't know what the number is, but it's less than 98% would still complete the agreement.

 

[CraigT78]

I have a bunch of different hobbies, and what I focus on changes with a summer breeze, so for me selling chips to fund my newest acquisition is where I gauge it. I wouldn't have $10k in hobby money sitting in my cabinet, so why do I still have these chips?

 

[Eriks]

At $80-120k, I'd probably sell. It would destress the wife and I could probably drop some additional money into my company to show my commitment to the startup. But even at this price, I'd probably rather offer it for 80% off to a local chipper with FROR.

All the power to you, but I think you would be in an extreme minority doing so and it, quite frankly, sounds a little stupid. Look at @David O ’s experience with a ”well known chipper” and FROR agreement. You never know..

 

[Burke]

Or keeps it. Let's say inflation runs rampant and chips go up in value again notably over another couple year period. People staring at a serious gain are more likely to find their gentleman's agreements unnecessary. Probably 98% of people would work this arrangement well without outside influence. If the chip set went up and ended up say 5K over the pawn price? I don't know what the number is, but it's less than 98% would still complete the agreement.

I guess I see. I think a relatively short timeline pawn agreement would help mitigate this issue. You're right about the trust factor. I'd still enter the agreement with many on here.

 

[BarrieJ3]

All the power to you, but I think you would be in an extreme minority doing so and it, quite frankly, sounds a little stupid. Look at @David O ’s experience with a ”well known chipper” and FROR agreement. You never know..

This isn't just me being "nice". For me it's the best of all worlds. Sure it hooks someone up, but it also means I get it coming back, so there's personal/selfish motivation as well.

And besides, when done you're doing it with someone you trust. I would think more often than not it will work out. When it doesn't work out? Well, it cost you $5-6k in David's experience to find out who that person really was. At least it was that and not going into business with that person or finding out due to a mishap while having them in your home.

I've been burned repeatedly. I've had FRORs sold, kept out of spite, and one where I just don't know where it is lol. That was the learning process and now I'm more careful. I'm pretty much of the notion that it has to be a local nowadays.