Boca Pawn
The NPA (National Pawnbrokers Association) announced, since the start of 2013, gold transactions have slipped while loans have increased. 85% of pawnbrokers surveyed reported that they have been buying less gold and doing more loans. Many industry experts point to the fact that most people already sold most of their gold during the price peak a few years ago. Boca pawn shops have been lending more money rather than buying gold.
While most pawn shops reported the gold transactions were leveling out, they also reported an increase of loan transactions by 10% from last year. That’s a fairly large increase from the year before. It seems as if when people needed some extra cash a couple years go they sold their gold, but now most people don’t have any gold left to sell, so they are settling for loans.
“More Americans are turning to pawn stores at an increasing rate. Increased public awareness, a positive image, and new, consumer-friendly stores have introduced pawn to a new generation of customers,” said Ben Levinson, president of the National Pawnbrokers Association. The survey also mentioned that the amount of loans redeemed stayed consistent at 85%. People tend to only get a loan for what they need and don’t over extend.
One of the biggest misconceptions of a pawn shop is that they buy and sell more than they loan. In fact, over 80 percent of pawnbrokers reported that a pawn loan is the transaction they conduct the most. “The pawn business model is complex,” continued Ben Levinson. “While many stores benefitted from the increased gold prices, collateral loans have always been and will remain the core of our business.”
by, Seth Marcus at Boca Raton Pawn
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