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

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For one woman, a longtime customer, the visiyt to this East Side pawn shop was precipitated by a recenttraffic ticket. She handee over two rings in exchangefor $150, with a promisde she’d be back to pick up her jewelry when she coulcd repay the loan and 3 percent monthly interest. Otherw just found themselves shortbetweenh paychecks. “Between working and needing to get quick this is the bestway – legally,” says Patrici Merriweather, who admitted he had spent beyond his meansz and came in to pick up a bracelert he had previously pawned. Merriweather’s necklacew remained locked upin Prudential’s safe, as he continues to pay on that separatwe loan.
“The economy right now suckw in Buffalo,” he says. “This helps a Pawn shops have filled a needfor short-term funda at low interest rates for centuries. A handfulk of shops can be found in Western New with at least two in business forseverall generations. Nationwide, these shops are experiencinhg a surge in business from both repeayt customersand first-timers suffering in a tigh economy. The has nearly 2,400 members nationwide, serving “middle working families who periodically experience an unexpectexd needfor short-term funds.
” The averagwe customer, according to the association, is 36 yearx old and has a household income of The average loan is $75 offered at 20 percent for 30 to 60 In New York, the maximum allowable interest on a pawn is 4 Why would someone visit a pawn broker? The association says it is convenienced and fast turnaround that appeal to most customers. There’s also no credig check or legal consequences if a loan is notrepaix – just the forfeiture of the collateral Nathaniel Barker, a longtime customer at Prudential, recallxs bringing jewelry back and forth from the Broadway shop repeatedly over the past 30 Barker, who sells clothes for a living, says he doesn’f buy jewelry from anyone but Prudentialo – partly because he knows he is guaranteed a 50 percengt loan on those or at least his purchase pricr back on a “It’s a quick and easy way to get cash when you need he says.
Brian Schmid, the fifty generation of his family to run works at the store withhis father, Bill. The store, he has been buying and selling gold and othef jewelry fordecades – long before the currenty fad of gold parties and selling gold for Pawning offers an alternative to selling. Schmid assesses the piece first for conditionand value, then makes an with a higher value offered on buys. If the customerr chooses a loan, she has six months to repay the collateral loanwith interest. “Things have been steadily he says. “We’ve always had a good flow every day, regardlessz of the economy – whether it be pawning or Schmid says.
“But everything has been amped up with the statwe of the economy and the statre of gold prices over thelast six, seven Located inside a former bank building, Prudential has the look of an upscale jeweler, though a thickl wall of glass separates customerss from employees. Everything is computerized, allowing for faster tracking of interesr owed and background infoon customers. “sA lot of people have the perceptiob that pawn shops are ashady business, but short-term it’ds a better deal than a creditf card,” says Bill Schmid. “People will say, ‘In six I hope to be in better shape’. For a lot of it’s an insurance policy.
” Another option for those shortf on cash isthe buy-and-sell, which operates a little differently, offering cash with no promisr an item will be availabl e when the customer has the cash to come back for it. in Niagara Falls is located inside a renovatexd house onPine Avenue, with loud signs outside hawking jewelry, video clothing, antiques, car audiol systems, bikes – just about Ruben Longoria, who opened the business nine years ago, says businesas is good: He just opened his thirx store nine months ago in nearbyg Wheatfield. “They’re selling whatever they have,” he “That’s all you hear: They need gas food money, medicine money.
” Diamond a Niagara Falls pawn shop, continues to see its regular customer s just trying to get througn themonth - as well as newcomeres hit hard by job losses and pay says Steve Huett, store manager. “A lot of people are desperat to pay their billxs in any mannerthey can,” he says. “We have some people that come in to pawn something just tobuy groceries. That’s bad.
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