May 2010 Archives

The Burnsville, MN-based business was issued pawn broker licenses on April 19 to open two stores in Des Moines, but those plans were interrupted by a six-month moratorium on new pawn shops and payday loan stores that was enacted Monday by the City Council.

The signs were still posted this afternoon at 4620 S.E. 14th St. despite requests to have them removed, said Roger Brown, an assistant city attorney.

"It's their plan to be open for business someday -- we don't dispute that plan," Brown said. "I don't see any violation for their sign that's inside the window. Obviously everything changes the minute that door opens for business, but we're going to view it as an irritation but not a legal violation as long as it's just a sign proclaiming something that, at least at this point, is not correct."

As of early this afternoon, city and Pawn America officials had been trading phone messages regarding the request to remove the signs, Brown said.

Michael Green, an attorney from the Brown Winick law firm who's representing Pawn America, referred questions to the company's public affairs representative, who could not immediately be reached for comment.

Businesses who believe the moratorium causes them "unnecessary hardship" can launch an appeal before the council as soon as its June 14 meeting. Officials from Pawn America, who plan to open stores at 3715 Merle Hay Road and 4620 S.E. 14th St., are expected to seek relief from the moratorium.

There aren't any "now open" signs at the Merle Hay Road location, Brown said.

"I don't know what kind of message they're trying to send if they choose to put signs up in the windows, but we will be forced to do something if they actually were to open for business," he said.

The city will "seek relief from the court to order them to close" if the business opens, he added.

City leaders will spend the next 180 days examining long-term zoning changes that could require separation distances between the businesses and cap interest rates for loans made by pawn shops. Language in the Iowa code appears to give municipalities the ability to regulate interest rates on loans given by pawn shops, city officials said.

The moratorium was urged by neighborhood leaders, Iowa Citizens for Community Improvement and several business owners who've voiced concerns about the number of pawn shops and payday lenders in Des Moines.

There is precedence for the restrictions the city is considering for pawn shops and payday loan stores. City zoning already restricts where bars, liquor stores and pornography shops can be located, for instance.

There are an estimated 14 pawn shops and 31 payday lenders in Des Moines, city officials said.

Brad Rixmann, owner of Pawn America, told council members many of the negative perceptions people have about pawn shops are unfounded. The business would make over $2 million in building improvements at the two locations proposed in Des Moines, both of which are former Furniture Row stores, company officials said. There are 23 Pawn America locations in Minnesota, Wisconsin, South Dakota and North Dakota.

City Councilman Brian Meyer said his week he is disappointed the signs are posted in the window of the building at 4620 S.E. 14th St. Meyer said he hopes the company isn't "intentionally thumbing their nose at the city."

For years, the biggest fans of gold weren't taken very seriously. Now they're looking downright prophetic.

Gold futures have risen for several weeks, breaking records along the way. If you invested $10,000 in gold two years ago, it would be worth nearly $14,000 today -- for a return of just under 40 percent.

While fans of the shiny metal have sometimes been dismissed as "gold bugs," the fact is gold has been rising in value every year since 2001, when an ounce of gold was selling for $279. A $10,000 gold investment then would be worth more than $30,000 today.

Some analysts are even anticipating that gold will hit $1,400 in the near future -- a far cry from two years ago when $1,000 for an ounce was considered as realistic as finding the lost city of El Dorado.

"We're going to see some explosive movement in gold," said John March, chief technical officer for gold trading firm Superior Gold Group in Santa Monica, Calif. "We're looking at something that doesn't have a lot pushing it down but a lot pushing it up."

Over the next eight years, March expects to see an average annual boost of 20 percent to 25 percent in the price of gold.

Investors are ducking into the precious metal amid concerns about volatile stock and bond markets and the worldwide implications of Greece's financial problems.

And this time, the growth is happening despite a strengthening dollar, which usually suppresses the metal's price.

Yesterday, gold settled at $1,227.30 an ounce, down slightly from Friday's record high close.

GOLD UP, PAPER DOWN

Gold's recent ascent has been unusual. It's one of the few commodities that is rising while others such as platinum, palladium and silver have been sliding with the improvement in the dollar.

Many investors are losing faith in paper-based currencies such as the euro and the pound, whose value has been falling.

In Europe, banks are running out of gold to sell, while the South African government rushes to ship more Krugerrand coins, analysts said.

"You have a world financial system in crisis, and it's quite scary," said Ken Edwards, vice president of Inglewood, Calif., bullion dealer California Numismatic Investment. "It's causing people to look again at where their assets are sitting and they're heading to safety. The picture of safety is gold."

Against those frightening headlines, it's no wonder gold prices are setting new highs this week. Yet stocks are on the rise as well, with economic news continuing to get better in the U.S. and parts of Europe, and as corporate earnings soar -- as we saw from Cisco Systems Inc. /quotes/comstock/15*!csco/quotes/nls/csco (CSCO 24.49, -0.38, -1.53%) late Wednesday.

While the S&P 500 Index /quotes/comstock/21z!i1:in\x (SPX 1,135, -1.80, -0.16%) and gold prices have climbed in unison for much of the past several weeks, at some point one of them has to break. Though the S&P is still well off its record highs, it looks the weaker right now.

A lot of gold's stunning climb in the past decade, from below $300 an ounce to a record of $1,243.10 an ounce on Wednesday on the Comex division of the New York Stock Exchange, has stemmed from the fact that the U.S. dollar has been weak. The dollar has climbed lately, but only because of the plunging euro.

Europe's crippling debt situation could easily spread to the U.S., which has similar debt problems in many states, including here in California. And in Asia, which went through a debt and currency crisis only a decade ago, China's spending is already being felt in a stock market that is down almost 20% this year.

The gains in stock prices this week -- rebounding from last week's big scare -- have helped bulls make the case that the economic growth we've seen in the past year will overwhelm the debt issues of places like Greece and Spain in the global markets. While I don't believe that, it is certainly possible. A growing U.S. economy typically lifts most global market tides, and is certainly hard to ignore.

But even against that backdrop, gold looks good in its traditional role as a hedge against inflation and gains in paper currencies, which would be an eventual market reaction to continued economic improvement and corporate earnings performance.

It's tough to see gold replicating the massive run it's already had, or even to really see it climbing to the $2,000 an ounce level many gold bugs think it can achieve. But it's a lot closer to $1,400 or $1,500 than to $300 given the current worldwide economic conditions.

The markets were jolted in the past few weeks in a way that will take some time for the scare to be over, likely the next two months. More scares from Europe or with unforeseen debt skirmishes elsewhere could spark gold certainly into the 1,300s, and maybe higher.

It's not a great bet for huge gains after the run it's had. But given the precariousness of just about every other investment out there right now -- including U.S. Treasury bonds -- it's probably more of a sure bet then say, oil or other energy futures.

At some point, the power of the U.S. economic recovery, and those in Europe and Asia, will begin to wash out the last of the bears and the pessimists who see another, more dangerous leg to the financial crisis developing. By then we will already be racing headlong toward the next crisis and recession.

In the meantime, gold bugs, investors in gold and mining stocks, and traders and holders of gold exchange-traded-notes and funds, are enjoying the best of both worlds. They've got the makings of a major debt crisis developing, and the possibility of a breakout in inflation across the largest economies.

Even for those fanatics who hoard their treasure under their beds or in their basements, untrusting of the banks and bankers, this should be a pretty safe feeling.

Plastic cards come with a large number of positive factors. Nowadays, shopping is becoming really easy mainly using the reloadable MasterCard credit card. Folks around the globe have selected for charge cards more readily than keeping the hard cash. It makes your store shopping to a great deal quite amusing as well as free of worries.

MasterCard prepaid credit cards are classified as the most excellent sort of credit cards which you can hold chiefly because it is available filled with perks that are not just eye-catching even though may also be practicable. Along with prepaid credit cards a replacement of greenbacks purchasing is becoming a whole lot simpler. Just a thin plastic is definitely an adequate amount that you should get out there and have entertainment without any limits. It is without any problems to keep such a card as it is small in size and light-weighted and without having difficulty fits in your purse. Lately, plastic cards have become widespread among most people, principally the upper class group. People want to obtain them since it is really portable and also hand outs for a class figure.

The leading bonus of the pre-paid credit card is actually the fact it's easy to set yourself a program as far as your regular spending habit is apprehensive. All you need to do is actually fill your credit card account up with the sum you'll have sufficient funds to spend and go for purchasing. The prepaid card won't let you execute a buy when you have crossed the maximum value for money.

You will additionally discover that a prepaid debit card is really a lot more uncomplicated to have than a conventional charge card. When you obtain a charge card you must submit all sorts of individual papers as well as wait whilst before you actually get it. In the matter of a Mastercard prepaid card, the typical task is moderate. Additionally, being simpler they're also not expensive and also freely in the market.

In the unstable overall economy just like the one, we are in at the moment, the primary and the most requesting advantage a prepay plastic is going to offer you is one to look after on your own from running into debt. The notion of this is very logical.

If you have a negative chexsystems report on your record that's preventing you from opening a bank Account? If so, read on and you'll find your solution. 80% of US banks belong to the chexsystems credit checking network.

If chexsystems has you flagged in their database, chances are, you simply won't be able to open a checking account at a bank or a credit union and cashing your paychecks through a check cashing service isn't a very cost effective solution to this problem. There is hope, though. If you are diligent enough, you may just be able to find a non-chexsystems bank.

Non-chexsystems banks are not easy to come by since chexsystems represents 80% of all US financial institutions. If you are lucky enough to find one of these ever rarer banks, all that's left is for them to allow you a bank account with a prepaid debit card. Non-chexsystems banks can be viewed as a fresh start for people who have, for whatever reason, made a financial error that left a stain on their credit report.

They are a place to rebuild your credit rating, as well as save you potentially thousands of dollars in interest fees and service charges that check cashing stores are famous for. Perhaps the best part about non-chexsystems banks is; they will issue you a prepaid debit card that card can be used to receive your paycheck by direct deposit. More and more employers are insisting that their employees to hand over their financial Information so that their payroll operations are more efficient.

Not only that, but having a direct deposit account is a little extra insurance against ever misplacing a paycheck or losing cash. Another fantastic feature associated with non-chexsystems banks that issue prepaid debit cards is that you'll easily be able to review your account balance and even pay all of your bills online. This convenient, safe and time saving feature makes handling your financial resources much easier.

LOS ANGELES (KABC) -- Credit cards and debit cards may look the same, but they don't work the same. In fact, using your debit card in the wrong places could be disastrous to your bank account.

Nearly every consumer has a debit card, but does that mean you should you use one? Sometimes a debit card is not the best choice. There are many places where it pays to leave the debit card in your wallet and use cash or credit.

If you shop a lot online and your card number gets hijacked then your bank account could get drained. And even if your bank limits your liability for fraudulent purchase to $50, you will still have the hassle of getting your money back into your bank account.

High ticket items like appliances and electronics, if something goes wrong with the product or the purchase you will have better dispute rights with a credit card than a debit card.

I've warned you before about thieves at restaurants who may have a credit card reader in their pocket that can capture all of the information on the magnetic stripe on your card, so they can make a counterfeit version of it.

Often restaurant employees are hired to do the theft when you pay your bill.

Sometimes when you make travel reservations, the agency debits your card immediately and then you're out the money immediately weeks or months ahead of your trip.

Some gas stations and some hotels will put a temporary bank hold on $50 to $100 or more of your money when you make a purchase or check in to the hotel.

One more thing to think about, the Federal Reserve does have a regulation that covers debit card transfers and sets the consumer's liability for fraudulent purchases at $50. But, you have to notify the bank within two days of discovering that your card or card number has been stolen.