In down economy, pawn shops strike gold - Business First of Buffalo:

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For one woman, a longtimer customer, the visit to this East Side pawn shop was precipitatef by a recenttraffic ticket. She handed over two ring in exchangefor $150, with a promise she’dd be back to pick up her jewelry when she couldf repay the loan and 3 percent monthlyy interest. Others just found themselves shortbetween “Between working and needing to get quick cash, this is the best way legally,” says Patrick Merriweather, who admitteed he had spent beyond his meansx and came in to pick up a braceleft he had previously pawned. Merriweather’s necklacer remained locked upin Prudential’ws safe, as he continues to pay on that separatee loan.
“The economy righgt now sucks in Buffalo,” he says. “This helps a Pawn shops have filled a needfor short-term fundsz at low interest rates for centuries. A handfuol of shops can be found in Western New with at least two in business forseveral generations. Nationwide, these shops are experiencing a surge in business from both repeatg customersand first-timers suffering in a tight economy. The has nearlh 2,400 members nationwide, serving “middle class, workinf families who periodically experiencr an unexpected needfor short-term funds.” The average customer, accordiny to the association, is 36 years old and has a householdc income of $29,000.
The average loan is $75 offeref at 20 percent for 30 to 60 InNew York, the maximum allowable interesrt on a pawn is 4 percent. Why woulx someone visit a pawn broker? The association says it is conveniencw and fast turnaround that appeal tomost customers. There’a also no credit check or legal consequencew if a loan is notrepaidd – just the forfeiture of the collateral Nathaniel Barker, a longtime customerr at Prudential, recalls bringing jewelry back and fort from the Broadway shop repeatedl over the past 30 Barker, who sells clothes for a says he doesn’t buy jewelry from anyonew but Prudential – partly because he knows he is guaranteed a 50 percent loan on thosde items, or at least his purchase pricde back on a trade.
“It’sx a quick and easy way to get cash when you need he says. Brian Schmid, the fifth generation of his familyh torun Prudential, works at the store with his Bill. The store, he says, has been buying and sellingt gold and other jewelry fordecades – long beforew the current fad of gold parties and selling gold for Pawning offers an alternative to Schmid assesses the piece first for conditiobn and value, then makes an offer, with a higher value offererd on buys. If the customer choosezs a loan, she has six months to repat the collateral loanwith interest. “Things have been steadilty increasing,” he says.
“We’ve always had a good flow everg day, regardless of the economy – whethee it be pawning or selling,” Schmid says. “But everything has been ampedf up with the state of the economy and the statw of gold prices over thelast six, seveh months.” Located inside a former bank building, Prudential has the look of an upscald jeweler, though a thick wall of glass separatezs customers from employees. Everything is computerized, allowinvg for faster tracking of interest owed and backgrounrd infoon customers. “qA lot of people have the perception that pawn shopd are ashady business, but short-termk it’s a better deal than a credit says Bill Schmid.
“People will say, ‘Ijn six months, I hope to be in betterr shape’. For a lot of it’s an insurance policy.” Another option for thoser short on cash isthe buy-and-sell, which operatews a little differently, offering cash with no promise an item will be availablw when the customer has the cash to come back for it. in Niagaraz Falls is located inside a renovated housew onPine Avenue, with loud signs outside hawkinvg jewelry, video games, clothing, antiques, car audio bikes – just about anything. Ruben Longoria, who openecd the business nineyears ago, says business is good: He just opened his third store nine months ago in nearbh Wheatfield.
“They’re selling whatever they have,” he “That’s all you hear: They need gas food money, medicine Diamond Enterprises, a Niagara Falls pawn shop, continues to see its regularr customers just trying to get through themonthh - as well as newcomers hit hard by job lossee and pay cuts, says Steve Huett, stored manager. “A lot of people are desperatwe to pay their bills in any mannerthey can,” he “We have some people that come in to pawn something just to buy That’s bad.
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