Forget the stock market—some of the earliest warning signs of a shaky economy may be showing up in an unexpected place: local pawn shops. As more people look for quick ways to cover everyday expenses, these businesses are seeing changes that reflect broader financial pressures.
At Empire Loan in Stoughton, customers regularly walk in with personal items—often jewelry—and leave with cash in hand. CEO Michael Goldstein, who has spent four decades in the industry, tells Boston 25 that recent patterns stand out.
“We are definitely seeing more suburban customers coming in than we have in the past,” Goldstein said, noting a shift in the store’s typical clientele. He says he’s also seeing more women than men using pawn services.
Rather than selling items outright, many customers are opting for short-term loans, using their valuables as collateral and returning later to reclaim them. According to Goldstein, about 90% of customers buy back their items.
“These customers are working,” he explained. “They just have too much week left at the end of their paycheck. Then a bill comes up, and they need a way to bridge that gap.”
For customers, the appeal is simple: quick access to cash without long-term commitment. “I appreciate getting a few dollars when I need it,” one customer said, describing the convenience of pawning jewelry temporarily.
Goldstein believes pawn shops offer a unique window into economic conditions—sometimes even earlier than traditional indicators. “Think of us as a canary in the coal mine,” he said. “When gas prices go up, or unemployment ticks up, our customers feel it first.”
Many of those customers aren’t heavily invested in the stock market or retirement accounts. “My customer isn’t the guy walking into the Ritz-Carlton,” Goldstein added. “He’s the guy holding the door.”
Financial experts say these trends align with broader shifts in consumer behavior. “Pawn shops have been a darling of Wall Street for about the last 18 months,” pointed out Bruce McKinnon, an entrepreneurship professor at Lasell University.
He notes that consumers are shopping differently overall—visiting more stores each year, chasing discounts, and relying on apps to stretch their budgets. Store-brand purchases are also on the rise, reflecting a growing focus on value.
“All of these are strong signals that the consumer economy is getting a little more brittle, a little more fragile,” McKinnon said.
Back at Empire Loan, Goldstein and his team are closely watching another key factor: the price of gold and silver. With both currently high, the shop can offer more money for items like jewelry and even silverware, helping customers cover short-term financial needs.
“It’s not the pawn shop you see in old movies,” Goldstein said. “And it’s not even what you see on TV today.”
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