LAS VEGAS, Nev. (FOX5) – Popular pawn shops in Las Vegas that draw thousands of tourists have seen a surge in customers seeking quick cash, spurred by inflation woes.
Pawn shops describe their stores as a “bellwether” of the economy, with more people seeking to sell items or obtain a loan when times are tough.
Rick Harrison of “Pawn Stars” and Gold and Silver Pawn told FOX News last month, that his store sees the impact of inflation on the average working-class American.
“Middle America… it’s crushing them,” Harrison said. People in need have pawned priceless belongings such as wedding bands for basic necessities.
“You take a single mom who has to drive to work every day, has to drive get groceries for kids. You drive a diesel truck and you work construction, and you put 100 miles a day on it. It really affects [how] you’re gonna get groceries at the end of the week,” he said.
Max Pawn is also seeing the impact of inflation on those with means. “We see loan demand pretty much all the time, but since this economic change, it’s definitely a spike,” owner Michael Mack said. “We had a guy bring a Ferrari. We gave a loan on it this week, so his two children could go to their private school. He had been laid off,” Mack said, hearing similar stories from other families as they head back to school.
The pawn shop provides 90-day loans to customers on high-end items; if customers cannot return them, the items go on sale at the store.
Macks’ advice: don’t overborrow.
“The saddest day for us is when someone leaves their merchandise. I loan you too much money, you’re not going to come back… if I loan you the right amount, you’re going to come back,” he said.
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