Well… Are Pawn Shops the Economic Barometer?
With unlikely popular television and pop culture shows like “Pawn Stars” that spawn the likes of Rick and Chumlee, you have to wonder why the attention is working. Could it be that pawn shops are becoming the economic barometer of these trying times?
This from http://www.pawnshopstoday.com/News.html – “Reports show that the three publicly traded pawn companies reported significantly increased earnings during the last two fiscal quarters. A historic increase in gold value and the “Cash for Gold” craze have shown record numbers of people trading in old jewelry and coins for cash. Perhaps the perception could be based on speculation that in hard times, people pawn. However, there is a larger, more compelling story about the pawn industry.“
The National Pawnbrokers Association goes on to report that there are over a staggering 30 million pawn store customers per year that frequent the hallowed halls of economic relief, and the customers highly appreciate the ease and quickness at which this form of lending works. It’s truly a win/win for business and consumer alike.
Because only publicly traded pawn companies are required to track their income, it is next to impossible to accurately track the industry. This, and the fact that the majority of pawn shops are privately owned businesses.
Here’s what we do know: The three publicly traded pawn giants have at least doubled their stock values in the last year. This statistic incorporates all of the business models involved in the pawn industry, not just the lending. And what it means is that the pawn industry is needed, welcome and thriving as it tends to the needs of those who the radical banking regulations are neglecting.
What are your thoughts on this. Does the pawn industry inversely reflect our economic direction?
By Boca Raton Pawn, your premier Boca Pawn Broker.
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