Pawn Shops

The 11,510 pawn shops in the US provide secured loans to individuals, using items of personal property as collateral. Firms earn interest and service fees on the loan, with interest rates charged varying by state. Pawn shops also generate revenue by selling used merchandise obtained from unpaid loans. They may also sell new and used items purchased from consumers or businesses.

Dependence On Gold Prices

A substantial portion of most pawn shops’ loans are secured by gold jewelry.

Federal, State And Local Regulation

Pawn shops must comply with a number of federal regulations, as well as state and local regulations that vary widely from state to state.

Jul 22, 2026 - Record Gold Prices Fuel Pawn Shop Boom

• Gold prices remain historically elevated, with spot gold trading above $4,100 per ounce in late July after setting a record high earlier this year. Silver has also climbed sharply, trading near $60 per ounce, supported by both investor demand and growing industrial use in electronics and manufacturing. The surge has fueled brisk business at pawn shops, where customers buy and sell precious metals for cash, firearms, or other goods. Gold jewelry secures a substantial share of pawn loans, and many shops also profit by buying and reselling precious metals during periods of high prices. Because gold often serves as both inventory and loan collateral, any significant price decline can quickly erode asset values and reduce the security backing loans. Pawnbroker Dustin Hughes of Family Pawn Store in Sedalia, Missouri, said precious metals "fly off the shelves" within hours of arrival, describing the market as a modern-day gold rush.
• US household debt reached a record $18.8 trillion in the first quarter of 2026, according to the Federal Reserve Bank of New York. Student-loan debt totaled about $1.66 trillion, with roughly 11% of balances at least 90 days delinquent, highlighting continued repayment strain for many borrowers. Credit-card balances stood at approximately $1.25 trillion - slightly lower than the previous quarter but still significantly higher than a year earlier - reflecting persistent consumer borrowing and elevated interest rates. Auto loans and other consumer debt also contributed to the overall increase, with auto-loan balances rising to about $1.69 trillion. Despite record debt levels, the New York Fed says most household balance sheets remain relatively stable overall, though younger borrowers and higher-debt households are showing increasing signs of financial stress as elevated interest rates continue to pressure consumers.
• The US pawn shop industry is currently benefiting from what analysts describe as "Goldilocks" economic conditions - an alignment of factors that simultaneously drive both loan demand and loan values. On one hand, consumers are financially stretched by inflation, declining savings, and rising living costs, pushing more Americans toward collateral-based lending as banks and traditional credit remain out of reach or undesirable for small, short-term needs. On the other hand, unemployment has remained relatively stable, meaning borrowers still have income and are largely able to repay their loans, keeping default risk manageable for pawnbrokers. Adding further fuel, gold prices have surged roughly 90% year-over-year to over $5,000 per ounce, dramatically increasing the loan value pawn shops can offer against jewelry and precious metals. The result is record revenues for major chains like FirstCash and EZCORP, with average loan sizes climbing steadily from around $160 in 2022 to over $230 today.
• Amid economic pressures and rising costs, pawn shops are emerging as back-to-school shopping destinations. According to a survey by the National Retail Federation, families plan to spend about 2% less this season compared to last year. Pawn shops are reporting a 4% increase in merchandise sales in Q2 2025, with notable growth in student-dependent categories like electronics and footwear. EZPawn, a chain with nearly 500 locations, attributes the uptick to families seeking affordable options for back-to-school necessities. Customers are finding significant discounts (up to 50% off retail prices) on laptops, musical instruments, and mini-fridges. Pawn shops are also seeing an increase in customers selling gold jewelry to fund school supplies, given that gold prices have shot up 27% since January 2025 to historic highs. While the back-to-school trend is positive for the pawn shop owner, a boost in pawn shop sales activity is usually a sign of a troubled economy.

Industry size & Structure

The average pawn shop operates a single location, employs 5-6 workers and generates $8.6 million in annual revenue.

• There are about 11,510 pawn shop establishments in the US employing 57,300 workers and generating $42 billion in annual revenue.
• Use of pawn-shop loans, payday loans, auto title loans, tax refund anticipation loans, and rent-to-own services has continued to decline overall in recent years, according to FDIC household surveys.
• The industry is concentrated, with the 50 largest firms representing 78% of industry revenue.
• The two publicly-traded pawn chains are EZCorp and FirstCash (formerly First Cash Financial and Cash America), and they account for roughly a third of retail locations.