Pawn Shop Payouts Skyrocketing, Harran Tells Business Group

The recession has hurt a lot of businesses.

But not pawn shops.

“The figures are blowing my mind,” Bensalem Public Safety Director Fred Harran said during a recent speech to the .

Harran said in 2009 pawn shops and related businesses such as gold buyers in the township paid out $232,000 and that number more than tripled last year at $760,000. This year, through June 30, the payout was $932,000.

“They're on course for $2 million,” Harran said. “That's the economy and the fact that gold is at a record high. People are selling everything they can get their hands on.”

Greg Simmons, co-owner of One Stop Pawn Shop at 2461 Lincoln Highway, says his business hasn't seen such skyrocketing numbers, just “marginal” growth. But he's not totally surprised at Harran's figures, given the blossoming of cash-for-gold businesses and the rising price of gold, which he said stood Monday at $1,764 per ounce.

“Cash-for-gold is opening up a whole new market,” he said. “They opened up at the (Neshaminy) mall, so even grandmothers are more comfortable going up there.”

Simmons says there are other variables.

“Some people get 'mind rich' when they hear things in the media about prices. Some people are stealing stuff. And some people are really trying to make ends meet,” he said.

In providing the figures, Harran said there are nine businesses in the township that by law must record the items they buy and “once a week we look at slips to make sure there's no stolen property.”

Simmons said his business is the township's only legal pawn shop, where loans are allowed. And his growth over the last few years, he said, also is attributable to remodeling and improved customer service.

A manager at , which is probably best known for electronics, agreed with Harran that the economy and gold prices are the main reasons for the increasing payouts.

“When the economy is bad, people need to sell their stuff but people still want to enjoy themselves and buy cheaper,” said the man who declined to give his full name.

“The numbers are so high on gold,” he continued, “even if we get the same amount we're paying more for it.”