As the US economy faces challenges during President Biden’s presidency, pawnshops across the country are experiencing an increase in customers looking to pawn items rather than redeem them. Les Gold, a former star of the reality TV show “Hardcore Pawn” and owner of American Jewelry and Loan in Detroit, explained that pawnbrokers often serve as street-level economists who can predict economic conditions. In recent months, Gold has noticed a significant rise in customers needing cash for basic necessities such as food, gas, and shelter.
Gold described how the lines at his pawnshop have shifted, with more customers lining up to pawn items rather than redeeming them. He emphasized that many of these individuals are struggling to make ends meet on a day-to-day basis, with a paycheck being uncertain. This shows a level of financial insecurity that goes beyond living month-to-month, as many customers are pawning items just to get through the week. Gold noted that pawnbrokers across the country are reporting similar trends, indicating widespread economic challenges.
One factor contributing to the increase in pawnshop customers is the accessibility of cash through pawn loans without affecting credit scores or credit availability. Gold explained that pawn transactions are non-recourse loans, providing individuals with a way to access funds without going through traditional banking channels that often require credit checks. As a result, some people may turn to pawnshops as a resource for quick cash when facing financial difficulties. This trend reflects a broader societal issue with financial instability and the need for immediate cash flow.
In addition to common items like electronics and jewelry, pawnshops often see more unusual items coming through their doors. Gold shared a story about a man who pawned a van belonging to Dr. Jack Kevorkian, a well-known Michigan native and right-to-die advocate. Gold made a unique deal with the man, offering to purchase the van for a specific amount, showcasing the interesting and sometimes quirky nature of pawn transactions. Despite the unconventional nature of some pawn items, Gold highlighted his willingness to make deals that could bring iconic pieces into his shop.
Overall, Gold’s observations paint a picture of a struggling economy where individuals are turning to pawnshops as a resource for much-needed cash. The increase in customers seeking pawn loans for basic necessities highlights the financial challenges facing many Americans. Despite the difficult circumstances, Gold emphasized the importance of pawnbrokers providing a valuable service to those in need of quick cash without the typical requirements of traditional banking institutions. The unique stories and items that pass through pawnshops reflect the diverse customer base and the creative deals that can be made to help individuals in challenging financial situations.
