Pawn Shop Business Thrives in Tanking Economy

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Story Published: Oct 5, 2008 at 5:44 PM PST

By Rudabeh Shahbazi

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KENNEWICK-- Most businesses are bracing for the worst in America's tanking economy. When times tough, people go to the pawn shop.

Randy Harris owns Ace Jewelery and Loan. He likes to call it "a bank for people who don't have bank accounts."

"More people are coming in, needing a few bucks to make it to payday, needing some gas to get to work, or buy groceries, or pay for daycare," said Harris. "Just the things they need for every day life."

Harris loans customers cash and holds on to their belongings as collateral. They have 90 days to repay the loan with interest, or their items end up on the showroom floor.

"We're kind of inflation-proof possibly, because when times are good, we have more people buying things," said Harris. "When times are bad, we have more people needing a few things to make it work."

Harris said he has seen an increase in sales over the last three months, but he has also been increasing his loans. Either way, he is keeping busy.

"Guns, gold and guitars are the things that we like the most," said Harris, showing and extensive collection of all three.

Gold is an international currency, valuable overseas and at home. Unlike the dollar, its worth is stable.

"I'm paying much more for the gold that I used to get for much less, and people are realizing how much value they really have," said Harris.

While he sees people struggling to stay on top of their financial troubles daily, he said his colleagues in other parts of the country are seeing more desperation. He said about 80 percent of his pawned items are redeemed.

"A lot of people are unable to pick up the items that they've pawned at the pawned, and the pawn shops are getting plugged up with the things that they're having trouble selling," he said. "So we're very fortunate here in the Tri-Cities to have a better economy than the res of the United States."

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