Slumping economy leads to spike in business for pawnshops

TRURO - A slumping economy is leading people to look for cash in a variety of places.
Sandra Sack, of Estate Jewellery and Pawn Brokers, said business normally slows down about two weeks after Christmas. That did not happen this year and Sack estimates the number of transactions has doubled in the past month.
"It's certainly up in the pawning aspect," she said Thursday morning. "I have seen an increase in the last month.
"Tuesdays and Wednesdays used to be our quiet days, there's no such thing anymore."
She said the two biggest reasons people are coming in with items to pawn are they have been laid off locally or they have just returned from working in Alberta. The customers need some cash to hold them over until they find work or their employment insurance kicks in.
"They've lost their job ... and they need to maintain a living."
People call the Inglis Place shop asking if it is interested in buying "everything and anything" from electronics and furniture to
jewelery.
"I have to be careful what I take," Sack admits.
The store does not take furniture because the size is prohibitive. It takes DVDs but is selective because of the amount that are coming in. And it wants to be sure what it does take, can be sold, if needed.
Sack said people must be 19 years old and have a picture ID. The shop provides cash for the item, which is held in storage rooms or on shelves for 30 days before being placed for sale.
"I'm running out of space," Sack said looking at her full shelves.
Just down the road on Havelock Street, Paul Drake is also busy with people looking to sell jewelery.
"When the economy starts slowing down I buy a lot of stuff," he said from Gold 'n Watch on Thursday.
The watch, clock and jewelery repairman has noticed an increase in people selling gold during the past few months.
"It's a combination of the economy and the Christmas bills coming in," Drake said.
Meanwhile, companies providing payday loans, like Money Mart, are quite different, says Stan Keyes.
"A person must have a pay cheque to qualify for a payday loan," said the Canadian Payday Loan Association president.
He said during the past 60 days the number of transactions for payday lenders in Nova Scotia and Canada has stabilized.
Keyes added lenders are going to be more cautious with the risk assessment given the economic climate.

jmalloy@trurodaily.com