Pawn shops are making bank thanks to Biden

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As the Federal Reserve devalues our currency and Biden policies continue to derail the economy, people are scrambling to pay their bills.

When times get tough, people figure out a way to survive.

But one business is enjoying record profits as the economy titers on the brink of collapse.

Pawn shops see inventories skyrocket

From fine jewelry and firearms to popular electronics, people often use pawn shops to sell or “loan” their belongings so they can get some extra cash.

Clay Baron owns a pawn shop in El Paso, Texas, and he told USA Today that his store buys and sells everything from gold jewelry and vintage clothing to leather cowboy boots and antique clocks.

“Right now, we have a glut of inventory which tells me that our clientele doesn’t necessarily have money,” Baron said.

When pawn shop inventory increases, it’s a sign that there are fewer buyers than there are sellers – a clear indication that times remain tough for most Americans.

Baron said, “When times are good and people have money, there’s going to be more money coming in. People will be buying the stuff. When people need money, there’s going to be more money going out of the store, which is what’s happening now.”

The issue isn’t just affecting small pawn shops, as two of the largest publicly traded pawnshop corporations in the country are also reporting growing inventory and higher demand for short-term loans.

FirstCash Holdings Inc. (doing business under the names First Cash and Cash America) operates approximately 1,200 pawn shops in 29 states and reported “record pawn receivables” in its most recent year-end earnings report, as well as a 10% increase in inventory in its U.S. stores.

Another large pawnshop company, EZCORP Inc., owns 530 pawn shops in the U.S. and reported an 8% increase in inventory, saying that the “challenging macro-economic backdrop” is fueling demand for short-term cash loans.

Gold is also driving up pawn inventory as more people turn to the precious metal as a hedge against inflation.

One ounce of gold just hit an all-time record of over $2,200 per troy ounce this week.

Pawn shops can help Americans in a pinch

Joe Biden and his administration continue to try and convince Americans that the economy is recovering, saying that inflation is easing while jobs and wages continue to grow.

However, most families are still struggling as they live paycheck to paycheck, and some lower to middle-income families may turn to pawn shops for extra cash.

Baron’s store, called Dave’s, is located in downtown El Paso, and it’s been in his family for four generations.

He says many customers use the pawn shop as a rainy-day fund, lending their belongings for a loan that usually lasts between 30 and 90 days.

Laura Wasileski, spokeswoman for the National Pawnbrokers Association, said, “Pawn balances have risen across the country in the past two years” due to “cost-of-living increases, the lack of access to credit, short-term emergencies, and the fact that 50% of American households do not have $1,000 in savings to cover those emergencies.”

Informed American will keep you up-to-date on any developments to this ongoing story.