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By Virginie Montet, Agence France-Presse
WASHINGTON: As other businesses struggle in an
economic slowdown, US pawnbrokers are thriving thanks to
increasing numbers of Americans forced to separate with their family
jewels to make ends meet.
“We see more people coming in to raise money
in these uncertain economic times,” said Rick Sussman of
Northwestern Loan Company in Baltimore which, founded in 1919, is
the oldest pawnbroker in the state of Maryland.
He added: “In better times you might see
people from the lower end of the social economic class getting
loans, and in bad economic times you tend to see additionally also
people who are middle-class trying to raise money.”
Power tools, stereos and above all
jewelry—given the high price of gold—are pawned for between one
and three months in exchange for a loan.
Interest rates vary between states: five percent
in Washington, DC, but 20 percent in neighbouring Maryland.
If clients don’t come back to recover their
goods, they are sold off.
“We have everything,” said Sussman, whose
vast store is visited by about 100 clients a day. “Our motto is if
we don’t have it, it doesn’t exist.”
Dave Adelman, president of the National
Pawnbrokers Association which represents 2,400 pawnbrokers, said the
average pawn loan is 60 dollars, which “helps pay the rent, keep
the lights on and gas in their cars to get to work.”
Jessica Caslani, of Crown Pawnbrokers in
Washington, said: “A lot of customers need a quick loan until the
end of the week.”
She noted that many people came in to borrow
money for petrol, which now costs more than 3.6 dollars a gallon, a
US record.
At the same time, rising gold prices provide an
incentive for people to pawn their family jewels. “We see also
more people because the price of gold is very high,” said Sussman.
Last week, the price of an ounce of 24-carat
gold reached $851, compared to $578 two years ago. In March, the
price topped a record 1,000 dollars an ounce.
Some jewelry remains on show for months without
finding a buyer because the prices are so high.
When such gold deposits accumulate, some
pawnbrokers prefer to melt rings, necklaces and bracelets to sell as
precious metal, one told AFP on condition of anonymity.
At Hock Shoppe pawnbrokers in Fresno,
California, 28-year-old Andrea Santiago was pawning her rings.
“I’m here every time we run out of gas or
bus money,” she said. But this time is a bit different—she needs
the money for a birthday party for her 7-year-old daughter.
In the past six months, Hock Shoppe has seen
10-20 new customers walk through its doors each day. Occasionally,
the items they offer are a little unconventional.
The other day “a lady called wanting to know
if she could pawn her dentures,” shop clerk John Benson said.
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