Pawn shops are ringing up big profits in the midst of a faltering U.S. economy. As people struggle to make ends meet, they have increasingly turned to pawn shops for fast cash. Pawn shops historically do not offer the best terms on loans, or the best prices for sold items, so it is ominous that people are turning to pawn shops en masse. This is a trend that is very typical in times of financial hardship though.
Investors who wish to profit from this trend could invest in stock of a large pawn shop company, such as Cash America (CSH) which is traded on the New York Stock Exchange, buy an existing pawn shop, or open a new pawn shop.
Online pawn shops are an emerging trend, as even brick and mortar pawn shops are now selling inventory for a higher amount on EBay. Low overhead can mean higher profits for online pawn shops, and also allows them to offer customers more money for their valuables or better terms on loans. In addition online pawn shops are able to offer their services to a wider geographic area. It appears clear to me that the future of pawn shops is on the Web.
If you ever were thinking of getting into the pawn shop business, then now is the time. If you prefer a brick and mortar business, and don’t want the added hassles of a startup company, there are also pawn shop franchises available. Two of these franchise opportunities are Cash America and PeoplePawn.
1 comment:
About 2 months ago, I found myself between a rock and a hard place. I needed extra cash, but didn't want to actually go to a pawn shop. I have never done anything like that before. There are a number of good online sites that will buy your gold and you never have to leave your couch. I researched the sites for about a week to a week and a half and found that the best reviews were for a site called GoldPawnShop.com. I sold 3 necklaces to them and believe it or not, I got more then what I paid for. I am much more stable now, but that extra check sure helped me when I was down. Good luck!
Jay
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