The Gold Standard, Syosset pawnbroker: more than a typical pawnshop

From its private transaction areas to the focus on luxury and rare items, The Gold Standard intentionally seeks to distinguish itself from the stereotypical storefront pawnbroker.

"Our business has no bulletproof glass, and clients sit in an office with a manager who makes a deal on what we can offer as a loan against their item," said Scott Simon, 49, head of the family-founded and owned Syosset-headquartered business. The firm, with stores in Syosset and Carle Place, and in Forest Hills and Floral Park, Queens, lends money and buys objects outright that individuals want to unload. It also retails items in Carle Place, Forest Hills and online.

But in 2008, the 12-employee firm began as a gold-buying business, which he had launched with his wife, Claire Simon, now 47, and her father, Jeffrey Persily, now 74 and retired since 2020. "Gold was skyrocketing through the roof" and jewelry events and shows were proliferating, Simon said.

By 2012, their dazzling business had mushroomed to 20 shops throughout Long Island and Queens. Yet, two years earlier, the family, seeking an additional income stream, had "fortunately" entered the collateral-lending arena, Simon said. And in 2015 when "gold got hammered," the family did a "180-degree flip" and began focusing mainly on pawnbroking. It also retained its current four sites.

Although the firm must, by law, report to the Nassau and New York police departments what it receives as collateral against its loans — "in case there’s a robbery in the area" — and the police have access to The Gold Standard’s inventory for evidence of a crime, the pawnbroker takes steps to steer clear of unsavory clients, Simon said.

"We ask a lot of questions — as in, ‘Do these belong to you?’ — and we read people’s body language. We want to operate as a bank for people who need our services," said Simon, who functions as CEO without the title. His wife handles the firm’s marketing.

Simon recently spoke to Newsday about his pawnbroking business. Answers have been edited for space.

Who are your pawnbroking clients?

They’re individuals who have items of value and are looking for bridge loans and owners of seasonal businesses, like contractors who, over the winter, need to maintain somewhat of a payroll and can’t go to a bank for a quick $10,000 loan.

Repeat customers represent 60% of our volume; referrals, 25%; and new clients, 15%.

How does the loan work?

Customers receive a loan based on 60% to 70% of their collateral item’s auctionable value, which we learn from eBay, subscription to major auction houses and dealer lists.

New York State dictates the interest and fees we charge. Our monthly interest charge is 4% of the amount of the loan, which runs for four months and is renewable. There’s also a one-time finance fee of 7% for the life of the loan. But if clients renew the loan, they only pay the monthly interest charge.

What happens when clients default on loans?

Ten percent of the time, a client doesn’t pay the fees and the principal. Then, we’ll sell the item at auction or privately. We refurbish everything we sell in like-new condition.

The value of your loans?

Generally, between $1,500 and $2,000, but we do loans from $500 to six figures, which isn’t unusual. We’ll lend a million for the right collateral.

How does the business’ volume break down by collateral categories?

Gold, diamonds and watches are 70%; vehicles — as in motorcycles and cars, like Ferraris and vintage Corvettes, 15%; and sports and political memorabilia, 15%.

What about coins?

People come here with coins, which we’re sometimes willing to buy outright if they’re not looking for a short-term loan. Usually, they inherited or collected coins and are ready to cash out.

What’s an extraordinary item you bought outright?

Mickey Mantle rookie card, which Mantle personally owned. It sold at auction for $180,000 last summer.

What usually happens to items you buy outright?

We sell Rolex watches to dealers, sports memorabilia go to auction, and a lot of gold, silver and platinum are melted and sold to bullion dealers.

What’s an example of an especially noteworthy collateral item?

Last year, we gave a $180,000 loan on a 2018 Ferrari 458 Speciale.

What items won’t you accept as collateral?

Costume jewelry, stamps, Hummels and Lladros, and artwork, because the market is very fickle. We won’t take Coach or Tory Burch bags, but we want high-end Birkin, Louis Vuitton and some Chanel bags, as well as Rolex and Patek Philippe watches, but not Movado.

Your biggest challenge?

Authenticating items. Our loans are on-the-spot decision-making, but it’s hard to lend out a lot of money unless we’re really sure.

I hate having to be the bearer of bad news to the client that the item is counterfeit.

How do you guard against fakes?

We have the machinery to identify counterfeit coins and lab-grown diamonds versus mined stones.

If we loan against baseball card collections, we send out for certifications, and we subscribe to serial numbers for watches. But occasionally, a fake Rolex even fools experts.

Rewarding aspects of your business?

It’s a pleasure to work with my staff. They’re really like a second family to me.

And most of the time, people are very grateful for the service we provide. While the money isn’t cheap, it comes at a time that they really need it. Occasionally, they’ll come around the desk and hug me.