Severe unemployment certainly boosts business for pawnshops, but so too does the high price of gold. The precious metal's price is up to more than $1,600 an ounce, vs. about $860 in January 2009. Suddenly, dusting off that old flame's gold necklace is an easy way to score a quick loan. "With the price of gold moving higher, it allows individuals to get a bigger loan, and that has been a stimulus to driving increased pawn lending," says Gerad Slayton of Calaveras Coin & Pawn.
Calaveras Coin & Pawn assists the community by giving much needed short-term loans to customers who offer jewelry, electronics, tools, musical instruments and other merchandise as collateral or by purchasing merchandise outright from customers. Loan terms are four months in length. If a customer fails to make their payment at the end of the the term, the pawnshop, following a grace period, can sell the item.
Pawn loans in California are usually cheaper than many credit-card and bank loans, they also are faster, don't require complicated paperwork and don't affect one's personal credit. Since the loan is backed by merchandise, if the loan isn't repaid, the person simply loses the pawned item — "whereas with other types of loans, I could lose my house or car," says Henry Coffey, a senior analyst at Sterne Agee & Leach.
Stop by with your item of value for a free evaluation: 1283 S Main St. Angels Camp, CA 95222
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