The lending at Pantbanken Sverige increased by 12 percent to 1.5 billion kronor last year. The number of loans increased by 9 percent, which means that the average value of the pledged items is increasing.
We had a larger increase in money than in the number of loans. It is very dependent on the gold price having risen a lot. The most common thing customers borrow on is gold jewelry, says Peter Sundström.
In January, which is often described as a poor month, the lending increased by 31 percent and the number of loans by 13 percent compared to the same month last year.
The trend continues. We lent out 154 million now in January.
Temporary solution
Despite rising unemployment and recession. Most of the pawnshop's customers see the pawnshop as a temporary solution to fill the gaps. Around 85 percent of customers redeem their items again.
One only borrows from us if one can retrieve it. A recession usually doesn't mean a rush. The biggest increase we had was a few years ago when inflation came, then people didn't have time and needed money for the day, says Peter Sundström.
Many use the money to pay bills or to get by until the next paycheck, according to Sundström. The average loan is around 9,000 kronor and the average loan period is three months.
New record level
The gold price reached a new record level last week and is currently around 2,900 dollars per ounce (31 grams).
About 80-85 percent of what is pledged is gold jewelry.
Then there are many watches. It has become very trendy. Silver, musical instruments, art, antiques are less common than you think. Most of it is gold.
Therefore, the conclusion is clear:
What affects the most right now is the gold price increase.
The item is valued in the pawnshop's store and the customer receives money directly in hand. The one who wants to borrow must be over 18 years old and show identification.
The normal loan runs for four months and can be redeemed at any time during the period. Interest rates and fees vary between different pawnshops.
Items that are not redeemed are sold by the pawnshop in the store or at auction, also online. If there is a surplus, after deductions for loans and fees, it goes to the customer.
In total, there are 21 pawnshop companies with a total of 61 offices in Sweden. The largest are Pantbanken Sverige and Sefina pantbank.
Source: Swedish Pawnshop Association
