Sponsored by Forest Grove Economic Development
Home Back Issues April 2009 High prices, bad economy create gold rush for pawnshops

High prices, bad economy create gold rush for pawnshops

| Print |  Email
Archives - April 2009
Wednesday, April 01, 2009

STATEWIDE Near record-high gold prices are drawing growing numbers of cash-strapped Oregonians to the state’s pawn shops with items ranging from the sentimental — pocket watches — to the odd — gold nuggets and dental crowns.

Pawnbrokers across the state are reporting increases in the number of customers looking to sell or get a loan on their gold, silver and platinum, with some stores reporting increases in gold-related business of more than 25%.  

“Everybody in the industry is seeing increases,” says Josh Oller, vice president of Silver Lining Jewelry & Loan in Portland. “We are seeing many more people selling their gold outright, instead of getting loans.”

Faltering international financial markets and a weak dollar have fueled gold’s dramatic $600 jump in value over the last five years, with the commodity reaching over $1,000 an ounce in February. Although the market has corrected slightly during the last month, gold still remains extraordinarily valuable at $900 an ounce.    

For customers — whose gold is valued based on the purity, or karat, and spot gold prices — the stronger the market, the more valuable their pieces. However, pawnbrokers also benefit from high gold prices when it comes time to resell an item or melt it down.  

While much of the gold purchased by pawnshops will be turned around and sold to customers, some of the less valuable or broken pieces, or “scrap” gold, is accumulated and sent to a refiner to be melted, says Oller. Depending on how much pure gold the melt produces, pawnbrokers receive a payment for the gold which is usually then reinvested back into the pawnshop to fund additional loans and purchases.  

Pawnbrokers are seeing increased competition from websites such as Like.com and Brokengold.com, which offer similar gold appraisal and purchasing services. But despite increased competition, Oller says that customers generally turn to pawnshops and jewelers first because they can shop around to sell at the highest price and can get cash immediately.              

NICOLE STORMBERG

Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Understanding Oregon medical marijuana dispensary tenants

News
Friday, June 13, 2014
061314 thumb grassrentBY CLIFF HOCKLEY | OB GUEST BLOGGER

This article summarizes the key considerations a building owner must keep in mind when thinking about leasing to a medical marijuana dispensary.


Read more...

Q&A: David Lively of Organically Grown Co.

News
Tuesday, July 01, 2014
OGCLogoBY HANNAH WALLACE | OB BLOGGER

Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.


Read more...

EPA Standards: A breath of fresh air for the region

News
Thursday, June 12, 2014
EPABY ANDREA DURBIN | OB GUEST BLOGGER

Last week, the Obama administration took an important and welcomed step in the effort to protect the health and well-being of all Oregonians by limiting carbon pollution from existing power plants.


Read more...

Creating a culture of compliance

Business tips
Thursday, June 19, 2014
DataBY MONICA ENAND | GUEST CONTRIBUTOR

Nine tips for building habits among employees to respond when needed.


Read more...

OB Video: Dress for Success

News
Wednesday, July 02, 2014
DFSOBY JESSICA RIDGWAY | OB WEB EDITOR

Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.


Read more...

Who said we should sell in May?

Contributed Blogs
Friday, July 18, 2014
BullMarketBY JASON NORRIS | OB GUEST CONTRIBUTOR

Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”


Read more...

Interview: Dr. Mark Goulston

Contributed Blogs
Thursday, July 10, 2014
JustListenBY TOM COX | OB BLOGGER

Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS