Inflation is causing people to turn to pawnshops and resale stores to earn extra money

RENO, Nev. (KOLO) — If you’re ever wondering how the economy is doing, head to a pawn shop. When times are good they see a lot of buyers, but when times are tight they are sellers.

While we wait to see if rising interest rates will help curb spending and lower prices, the higher costs are eating into large chunks of budgets, prompting many in the region to explore various ways to reach both ends.

To pawn of the valleydirector Matt Ludlow says he’s hearing more about the need for secured loans because of gas prices.

“Just when it (gasoline prices) went over five. We earned everything from just getting to work or going on a trip,” Ludlow said.

Ironically, the opposite happened during the height of the COVID pandemic.

“It was weird, it was more sales than loans,” Ludlow said. “Everyone had, you know, the stimulus money, the refund checks.”

Reno Gold Exchange in South Virginia St. is also seeing a similar trend.

“Paying rent, raising gas and food prices, that’s what I’ve heard from a lot of people, especially when it’s something that’s hard to let go, that they don’t didn’t want to sell,” said Jacob Peterson, owner of Reno Gold Exchange.

While many are pawning and selling for a little extra cash, others are investing in precious metals like silver for fear of a possible recession.

“Over the past two years, we have sold more gold and silver bullion than in the previous ten years,” Peterson said.

“We can’t keep the money on the shelf,” Ludlow said. “It’s a good investment smaller than gold.”

Although the demand for silver is high, Peterson says don’t sell unless you really need it.

“Hold on for as long as you can, I don’t think we’ve seen the highest yet,” Peterson said.

If you decide to go this route, experts recommend seeking the help of a financial advisor before investing in silver.

To learn more about how to invest the metal, click on here.

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