Pawn shop manager Michael Smith has definitely seen a slowdown since the price of gold has dropped. Last year in his store, gold and other precious metals accounted for about 80% of business, but now they account for less than half of purchases. Smith says many of his regulars are “shell shocked” by the drop. “They wonder why I can’t give them the prices I gave them before. When gold drops $500 an ounce, it’s definitely going to make an impact.” Pawn shops are also sending less to the refinery. While gold prices were sky high, many customers were unable to buy afford gold jewelry but pawnbrokers could still make a profit reselling to gold refiners. With the lower gold prices, however, pawn shops should start seeing more jewelry shoppers in their stores. While pawn shops have seen less gold coming through their doors, the business is so diverse they are protected from the fluctuating metal prices. Customers are still taking advantage of pawn loans and the variety of products offered in a pawn shop.
Pawn Shops Stay Afloat Despite Falling Gold Prices
- Published: 1723 days ago on May 5, 2013
- By: PawnTimes
- Last Modified: May 5, 2013 @ 4:33 pm
- Filed Under: Pawn News
- Tagged With: gold, pawn shop, Pawn Shops, Precious Metals, price of gold