Monday, Sep 14, 2009 @09:52pm CDT
From paying bills to cashing in on a bargain, pawn shops are playing an interesting role in this recession. Some people get information from their stock broker, others learn about the recession's affect from their pawn broker.
"In June, people were picking up pawns," says Norm Dias at Gold Digger Pawn in Springfield. He's not your typical economist. But he has his finger on the pulse of the recession. "It's taken another turn. People are bringing stuff in."
To fill their wallets, customers are willing to put their items on these shelves.
"More middle class people than normal," says Brandon Reynolds of the crowd he's seeing at Gunsmoke Pawn. Still, he hasn't noticed the sign that things have hit rock bottom.
"You can tell it's bad when they bring the shotgun, wedding ring, stuff like that."
Store managers say there are other items that indicate the difficulty in one specific industry.
"We have tools," says Reynolds. "No one is buying them. We're not taking them. There's just not a market for them right now. Everybody's getting rid of tools left and right. Nobody's needing them, there's no construction work. It's tough times for that sector."
That's good news for buyers.
"If you're looking to buy a construction tool, now's the time to do it," says Dias. "I mean, you're paying pennies on the dollar."
While most tools end up on the sale rack, managers say they really work to ensure other items do not.
"75% of people come back for their stuff," says Reynolds.
"We want you to come back," adds Dias. "We want to float a loan to make it to pay day so you don't lose your item. We don't want to end up with it."
While tools and gold are being pawned, people who are spending are putting money in guns. Staff members says sales are not as high as right after President Obama's election when there was worry about gun laws, but it's still double what they typically see.
Competition in the market for selling pawned items is tough. There are a few stores that are closing shop. Others are working to become more marketable by selling items in online auctions.