With the recession continuing and the inflation rate up to 3.5% and unemployment still high people are feeling the pinch. For this reason they are turning to pawnbrokers because they can borrow money against their gold jewellery. The benefit is that they are never in debt because if they are unable to redeem the goods they do not have to repay the loan or interest.
The pawnbroker will sell the items at auction and if the gold price is high the pawnbroker after deducting the loan and interest will refund the difference to the customer.
The gold price is up over 100% in three years so people are cashing in on their broken and unwanted jewellery. But be careful those that advertise cash for gold on television are not paying the market gold price.
