The number of people turning to the Pawn Bank has increased in recent years, but this summer the trend has reversed – for the first time in a long time.
In June, the number of customers decreased by seven percent, compared to the same period last year.
We notice that it has slowed down, after the enormous increase over the past two years, says Peter Sundström.
Fewer items go to auction
The growth rate has decreased throughout the year, but it's now this summer that it has actually decreased. Peter Sundström believes it's because people have gotten a bit better off.
Inflation is going down and electricity bills have also dropped radically. So all these private economic factors have certainly had an impact.
It's also more people who pick up their items compared to the beginning of the year. In June, 86 percent picked up their items before the auction. At the beginning of the year, the corresponding figure was 83 percent.
Under the pressure of inflation, people didn't think about picking up their items. But now we're seeing more normal behavior again.
Record-high lending
On the other hand, lending is still increasing, i.e., how much money the pawn bank lends out. During the first half of the year, lending reached new record levels and amounted to 735 million kronor. This is an increase of ten percent compared to the same period last year.
Over the past five years, lending has thus increased by 85 percent.
There are fewer people coming to us, but those who do borrow more money. Their items are a bit more valuable today, because the gold price has risen so much.
The most common items pawned are gold jewelry, according to Peter Sundström. But watches and handbags have also increased in recent years.
Karin Rader/TT
Facts: How it works at the pawn bank
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The item is valued in the pawn bank's store and the customer receives cash immediately. To borrow, you must be over 18 years old and show identification.
The normal loan runs for four months and can be redeemed at any time during that period. Interest rates and fees vary between different pawn banks.
Most people pawn gold jewelry and watches, but also art, antiques, and musical instruments, such as expensive handbags, ties, scarves, wallets, and belts.
Items that are not redeemed are sold by the pawn bank in the store or at auction, also online. If there is a surplus, after deductions for loans and fees, it goes to the customer.
There are a total of 23 pawn bank companies in Sweden. The largest are Pantbanken Sverige with 26 offices and Sefina pantbank with 20 offices in Sweden.
Source: Swedish Pawn Bank Association
