The Pawn Shop Indicator 🌤️ The Morning Print
Good morning!
Pawn shops are making new decade highs relative to financials.
Historically, these haven't been the easiest type of environments to navigate.
Let's take a closer look.
Pawn shops are in many ways the "bank" for lower-income consumers.
They offer loans when traditional banks often won't, frequently due to factors like credit scores and lending requirements.
In addition to lending, they operate retail businesses where customers can buy and sell a wide range of goods.
Pawn shops also gain from rising precious metal prices, as they’re able to sell gold and silver to refineries at spot value.
Taken together, these factors mean pawn shops typically see increased activity during times of economic stress.
So when they begin to outperform traditional banks and credit institutions, it’s a signal worth paying attention to.
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