Pawnbrokers Continuing to Benefit from High Gold Prices

From Market Wire Dot Com

LONDON, UNITED KINGDOM–(Marketwire – May 27, 2010) – The recent surge in the price of gold has seen a huge increase in people choosing to take loans against or sell gold, rather than buy it. More people than ever before are now scrapping their gold items or achieving high loan amounts as gold values have rocketed in these uncertain economic conditions.

This is good news for pawnbrokers up and down the country, who are reaping the rewards of the constant supplies of gold provided to the international market. There has been a huge boom recently in people deciding to pawn gold, with many pawn shops appearing all over the country as a result. These increased prices mean pawnbrokers are able to offer customers much bigger loan values than previously as items are worth more providing greater security against the loans.

A spokesperson for Borro the UK’s first online pawnbroker says: ‘The increase in the price of gold came at a time when people were struggling to get a loan from banks, who were making it even more difficult to obtain finance and redundancies were rife up and down the country.

‘But as well as providing a way of getting from one month to the next, pawnbroking has also made people realise that they can afford luxuries through releasing extra cash from increasingly valuable items.’

Another factor which is likely to be attracting new customers to pawnbrokers, is the fact that credit ratings will not be affected if they cannot pay back a loan, as it would be by high street banks. Pawnbrokers traditionally sell off items if customers can not afford to pay back the capital and the interest, but credit ratings stay unaffected. So in that respect it is a low risk solution for many and with the incredible value of gold right now, this looks set to remain unchanged.

Headquartered in Oxford with offices in London, Borro.com was the UK’s first online pawn shop, changing the face of pawn broking by offering consumers a discreet, safe and hassle-free way to borrow money against their personal valuables.

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