More pawning goods for gas, food

Tight budgets pose problem for store owners, though -- no one's buying

Business is brisk at Triangle pawnshops these days -- so much so that some of them may soon be in financial trouble.

As the price of gas and groceries continues to rise, more families are turning to pawnbrokers to bridge the difference between income and expenses. While plenty of people are pawning items, hardly anybody is buying.

Bob Moulton, owner of National Jewelry & Pawn in Durham, said sales are off so much that some shops are at risk of closing.

"I've seen five or six pawnbrokers come and go in Durham in the past eight years," said Moulton, whose store is larger than some others. "From what we're seeing at our level, smaller stores are really feeling the pinch."

Moulton said many customers are pawning items just to make their mortgage payments, pay other bills or buy groceries.

Dave Beck, owner of Plaza West Jewelry & Loan in Raleigh, agreed.

"Everyone I know is being inundated," Beck said. "Gas, milk and groceries are all more expensive, and paychecks have not kept up. If you have limited discretionary income, then you have to do whatever's necessary."

Customer Sean Creasy pawned a .45-caliber handgun at Beck's store a few weeks ago. He said he would use the $40 he received for lunch money and other miscellaneous expenses until his paycheck arrived later in the month.

Like many pawnshop patrons, Creasy figured he would probably only part with the gun for a short time. Using a pawnshop method known as a "pickup," he expected to buy his own item back, with interest, in the next 30 days.

But the current economic woes mean some customers aren't able to do that. Moulton said pickups are down 8 percent from last year.

That, in turn, has affected the bottom line at some pawnshops.

Plus, pawnbrokers say most customers have spent their tax refunds and stimulus checks already, so that won't help their shops find extra business.

Beck said things have gotten so bad that he's begun turning away merchandise, especially tools.

"You can buy yourself broke in tools right now," he said, attributing the overabundance to a slowdown in home reconstruction.

"These are guys that do remodels, build decks, things like this, and if homeowners don't have discretionary income to buy gas they certainly can't afford to remodel or add on," Beck added.

Triangle pawnbrokers also are seeing a lot of customers pawning gold -- jewelry, coins and even teeth and bridgework -- to take advantage of high gold prices, which have risen to nearly $900 per ounce. (That's up from $325 per ounce five years ago.)

Beck said he and his staff are getting many new customers seeking to pawn items. Some come back often.

"It's not like you just hit a little glitch this week or next week. ... They're repeat customers week to week."