There was one strong subliminal message from H&T Group’s trading update: we are not our fellow pawnbroker Albemarle & Bond. Both, and the rest of the sector, have been hit by the fall in the gold price since the spring.
This is a double whammy for pawnbrokers. The fact that people’s unwanted trinkets are worth less means they are less willing to “pop” them, while the resale value of items not redeemed is lower.
A year or more ago, both companies were booming. “Pop-up” shops, temporary outlets, were being set up in busy retail locations to unburden people of their unwanted gold. The price is now down by almost a third since the spring.
The difference between the two is that Albemarle & Bond