WICHITA FALLS (KFDX/KJTL) — The price of gold may be reaching near-record highs, but a local pawn shop owner said customers are buying more gold than selling or pawning.
“Our customers got income tax checks, then they got stimulus, extra unemployment,” Cash ‘N’ More Pawn & Jewelry owner Michael Morrison said. “So we are really selling more than we’re loaning,”
That’s how the gold market is going at Cash ‘N’ More Pawn on Jacksboro Highway.
With gold prices hitting record highs, some would think that people would be in a rush to turn their gold in for cash.
But Morrison says it’s the other way around.
“We had a big rush on gold a few years back,” Morrison said. “I think a lot of people sold their stuff than when it was high about four or five years ago. We are seeing a little more than normal but not a huge influx of it.”
Midwestern State University Economics Professor Dr. Sarah Quintanar said with interest rates lower because of the pandemic, there’s a smaller return on investment in the bond market, causing gold to seem like a better investment.
“People are worried about inflation,” Quintanar said. “This is causing inflation, and if you are an investor that believes that inflation is going to be really high as a result of these policies, then you may have a preference for gold. Because gold historically does not suffer from inflation problems.”
Even with gold being a historically solid investment, it still comes with a buyer beware label.
But if people just want to turn their gold in for cash, some say the time is now.
“I think it would probably be a good time,” Quintanar said. “Especially a lot of people have stuff sitting in their jewelry boxes that they’re not wearing, they’re not using. Now’s probably a pretty good time to cash out.”