Trading gold for gas : Residents turn to pawn shops for extra money
Posted on Sunday, May 4, 2008
Whether the experts are calling it a recession or a slowdown, many Northwest Arkansas residents are feeling the pinch of tough economic times.
They can often be heard bemoaning record gas prices at the Laundromat, the post office and, lately, at the counter of area pawn shops.
Clint Gober, manager of Mountain Man Supplies and Pawn on South School Avenue, said he's seeing more people bringing their belongings through the door and saying they need extra cash to fill their gas tanks.
It's happening a lot more often now, he said. Three out of four customers that came in Wednesday morning said they were needing gas money.
"We're not dealing with people that need home loans or vehicle loans or anything like that. These are people that just need some money to get by until their paychecks come in," Gober said.
The average price of gas in the area reached $ 3. 53 per gallon Thursday, according to AAA.
But people aren't just cringing at the gas pumps anymore. The souring economy has found its way to the shelves of grocery stores.
In 2007, retail food prices increased by 4 percent, the largest increase since 1990, according to the U. S. Department of Agriculture. In 2008, the department predicts food prices will jump another 4 to 5 percent.
Certain foods have gone up dramatically in price over the past year. The price of eggs increased nearly 30 percent, while milk and flour jumped more than 13 percent and rice rose nearly 10 percent, according to the U. S. Department of Labor.
Gober said he hears all kinds of stories from people who are willing to part with their belongings for a shortterm loan. Lately, people have been saying they need a little extra cash to pay bills or buy groceries until their stimulus checks arrive from the federal government.
The average pawn is $ 64, Gober said, and the average customer is looking for gas or grocery money.
The pawn shop industry is one of the few that isn't feeling the effects of the weak economy "We're blessed to be in a business that the economy doesn't affect all that much," Gober said. "Every time I pick up the paper I think how fortunate we are under the circumstances."
There are some items that are never going to lose their value in this economy, Gober said.
"Gold, diamonds and good, high-quality firearms will never be obsolete," he said. "They will always maintain their value and sometimes increase in value."
For instance, when gold prices spiked at around $ 1, 000 an ounce last week, people starting going through their jewelry boxes.
"It's worth their time and effort to bring it in now. We're paying about three to four times more for it than we were a year ago," Gober said. "If you've got something sitting at home and it was worth $ 20 a year ago, now its worth $ 60 to $ 80. All of a sudden, that means something to people."
The most popular items to pawn are electronics and power tools, Gober said. Those are the items that really don't have any sentimental value so they're easier to part with. Also, he said, many people have more than one television or DVD player at home and they're willing to do without one for a while.
Those who don't have extra items lying around are offering to trade services for goods.
Amanda White, 29, posted a listing on the online hub Craigslist offering babysitting services in exchange for summer clothes for herself and her 2-year old son.
"I'm a stay-at-home mom and my husband works a full-time job. He also does overtime each week, but we still live paycheck to paycheck," she said.
White and her family moved to Lincoln from Springdale when her husband got a job in Prairie Grove in order to cut back on what they were spending on gas. But now she finds herself driving to Fayetteville, she said, to get food and clothing for the family.
"And don't get me started on the price of food these days," she said. "It's gone up three times in the last year."
White said the wages have not gone up to support the increase in gas and food and finding a job is nearly impossible, particularly if you have a child.
"I would go find a job, but I would be working just to pay for the gas back and forth and for a babysitter," she said. "The economy has gotten to the point that people can't survive."
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