Pawn shops flourish as economy slumps

Owners see an uptick in business, along with some sad stories

BOSTON. As gas, oil and food prices soar and the real-estate market slumps, people just trying to get by are trading items of sentimental value for quick cash.

“The last three months have been drastic,” said Roy Bayles, co-owner of the Malden Center Thrift Store. Cash transactions have more than doubled in that time, largely due to the high price of gold, he said.

Bayles has seen family heirlooms and wayward wedding rings find their way onto his shelves at an amplified rate. His wife, Maria, estimates a 40 percent increase in gold sales in the past few months.

Matthew B., of Melrose, made a quick $37 Thursday afternoon for a gold ring he said was just gathering dust.

“For years, it wasn’t put to use so I figured to get the extra cash. I never would’ve thought about doing this before,” he said, when asked if the economy affected his decision.

Despite the uptick in business, Roy Bayles admits some sad stories are coming through his doors. He spoke of a mother just looking to pay for baby formula and a laptop recently sold for gas money. And it’s a two-way street — those needing furniture and televisions are turning to his shop instead of the regular retail stores.

But as long as gold is reasonably-priced, it remains the big ticket. It’s currently priced around $960 an ounce.

“What we’ve seen recently is it’s the economy, but also that gold is very high,” said Michael Goldstein of Empire Loan, a jeweler and pawnbroker who operates five stores in the area.

Buys, loans and calls are up for Goldstein. He says emerging middle classes in India and China —now more able to afford commodities like gold — may continue to raise prices.

“We’re just scratching the surface,” he said.