Michael Goldstein, owner of Empire Loan Jewelers and Pawnbrokers of Boston, has seen an increase in customers as a result of the struggling economy.
Pawn shops flourish as economy slumps
Owners see an uptick in business, along with some sad stories
Thriving in adversity
Similar industries that do well in poor economies:
Repossessors. ‘Repo men’ have their hands full. Auto loan defaults in the U.S. reached a 10-year high of 3.4 percent this month, according to The Boston Globe.
Bankruptcy Attorneys. Bankruptcy filings are up 22 percent in March when compared to last year, according to The Boston Globe. Bankruptcy attorney’s have enough work to go around.
Home Auctioneers. According to ForeclosuresMass.com, 31,516 homes were foreclosed in the Bay State in the last year as of March 1 –- a 45.6 percent increase over last year’s number. Let the bidding begin.
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.
