Gold has recently hit an all-time high…… $2,400.
Something feels different this time. I have been a pawnbroker since 1996. I remember when gold hit $800 in 2008. I remember when gold broke $2,000 in 2011….. that was a wild ride.
Gold in 2024 is not as exciting and motivating to our customers. Pawn customers are used to gold being over $2,000. Our customers are used to higher prices of gas, rent, food, labor and they are definitely pawning everything that they can. But, my pawn customers are not selling gold and silver like they did in the past.
I think our customers know that gold is going to go much higher. They believe in gold.
One trend that I have noticed in the last six months is that many gold and silver coins that have traditionally commanded nice premiums…… now have NO wholesale premium.
I was a coin and bullion dealer before becoming a pawnbroker. In contrast to how it is in our pawn shops, our coin shops have had a lot more sellers than buyers of gold and silver bullion coins. Sometimes 5-8 times as many sellers as buyers. So a lot of items have to be sold to wholesale dealers.
So, even though gold and silver spot have recently increased by 10-15%…… wholesale premiums are often now zero or even negative.
My Prediction:
Our loan balances are headed higher both because of normal seasonal growth and because gold and silver will be headed higher during the next twelve months. I would not be surprised if gold hits $3,000 and silver $50 during the next 365 days.
With that said, Please continue to do what you do best. Buy and loan on gold and lock in your profits to continue to grow and finance your business.
If you need additional help or resources,
Foster & Klass is available.
We buy and sell coins, currency, bullion, diamonds, Rolex watches, and important sports cards and comic books.
We help people sell important items at auctions when appropriate.
We give advice for free. PhP Pawnbrokers text or call Foster & Klass for FREE advice and no obligation offers to buy (559-270-4653).
Foster & Klass
Stephen Foster
Mobile 559-270-4653
ABOUT THE AUTHOR: Stephen Foster has been a pawnbroker and multi-store owner for over 26 years and has served on the CAPA California Association of Pawnbrokers board of directors since 2012.
Opened in fall 2016, Sceptre & Sash is a luxury pawn boutique unlike any other located in the heart of Central California.
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