America's Pawn Empire

America's PAWN EMPIRE In the 1950s pawnbrokers were America's number one source of consumer credit. Since then, the prestige of the neighborhood pawnbroker has plummeted. But this year, hit reality T.V. series 'Pawn Stars' and Groupon-backed Pawngo.com confirm: pawnshops are back. Consider America's largest legal underground economy: Apanton ON EVERY CORNER There are more PAWNSHOPS in the U.S. than MCDONALD'S restaurants PAWN SELL BUY LOAN MCDONALD'S OPEN 13,000 12,800 Pawnshops McDonald's The U.S. pawn economy is worth more than the GLOBAL ART TRADE Pawnshops made The global art trade last year was worth $6.0 BILLION in sales last year $5.8 BILLION 'Pawn Stars' is the 2ND MOST-WATCHED reality T.V. series in the U.S. Only 'JERSEY SHORE' has more viewers JERSEY SHORE PAWN Stars Pawn Stars Jersey Shore 7.6 MILLION 8.56 MILLION 2 Pawning is the world's 2ND OLDEST PROFESSION 1,000 B.C. Pawning was first recorded in China, the world's first financial institution 1492 Queen Isabella pawned jewels to fund Columbus' trip THE DAILY PAWN SHOPS! 1950s Pawnbrokers are America's most popular source of consumer credit $131K 2008 Study finds each pawnshop stimulates $131,000 in additional theft 3 3 TYPICAL PAWNER The Household Age Income 36 $29,000 D00 4 IN 5 Are employed and have a H.S. diploma or GED 2 IN 3 Do not own homes 4 A America's pawn mogul: TODD HILLS Todd Hills is the CEO of Pawngo.com Pawngo Pawngo loans an average of The company has loaned $2,000 $3 MILLION at 3-6% interest since June Hills wants to help people who NEED MONEY FAST but don't want anyone to know He built his career making 48% ANNUAL INTEREST on high-end items like these: Ducati racing bike Corum gold watch Dodge Viper $90,000 $85,000 $70,000 5 In pawning HARD-TIMES ARE BOOM-TIMES $150 PAWNSHOPS PROVIDE LOANS to those who can't qualify for loans or don't have bank accounts: $80 AVERAGE PAWN LOAN In 2008 In 2011 $80 $150 2008 2011 Pawn loans are still the CHEAPEST short credit option Let's say you need $80 to fill up your gas tank: An $80 pawn loan at 20% for 30 days $16 $27 Bank overdraft fee $28 Bank non-sufficient funds fee Merchant-bounced check fee $25 $29 Credit Card late fee Utility late / reconnect fees $33 6 Cus favorile U.S. COTTAGE INDUSTRY E 4 OUT OF 5 SHOPS Employ less than 4 people 9 OUT OF 10 SHOPS <$500K Have sales under $500,000 4 OUT OF EVERY 5 LOANS Are repaid and items are retrieved Florida has 1,280 of the U.S. 13,000 pawnshops MIAMI MIAMI-DADE HAS MORE PAWNSHOPS THAN ANY CITY Land of 198 Paunshops It's also the most 'UNBANKED' city in the U.S. 1 IN 5 BANK BANK BANK BANK Don't have a bank account Keeping tabs on America's pawn industry is a challenge for economists, but U.S. pawnbrokers are widely reporting holiday activity jumping 35% FROM 2010. And amidst recession-era frugality, pawnshops are reclaiming their historic roles as neighborhood flea markets, banks and museums. Brought to you by FRUGAL DAD Sources http://www.nationmaster.com/graph/foo_mcd_res-food-mcdonalds-restaurants http://moneyland.time.com/2011/12/12/holiday-shoppers-hitting-pawn-stores-in-big-numbers/ http://www.ibisworld.com/industry/pawn-shops.html?partnerid3DValuationResources http://www.thedailybeast.com/newsweek/2011/12/04/why-is-art-so-damned-expensive.html?obref=obinsite http://en.wikipedia.org/wiki/Pawn_Stars http://en.wikipedia.org/wiki/Jersey_Shore_(TV_series) http://www.cashamerica.com/LoanOptions/PawnLoans/HistoryOfPawn.aspx https://pawngo.com/why-pawn http://www.npr.org/2011/06/09/137033690/pawn-star-rick-harrison-on-his-deals-and-steals http://www.law.umich.edu/centersandprograms/lawandeconomics/workshops/Documents/Winter2008/miles.pdf http://assets.nationalpawnbrokers.org/2010/10/Industry-Overview-7-7-09.pdf https://pawngo.com/about http://www.thedailybeast.com/newsweek/2010/10/28/a-pawn-shop-for-the-affluent.html http://www.businessinsider.com/get-an-insider-peak-into-how-pawn-shops-work-2011-12 http://www.law.umich.edu/centersandprograms/lawandeconomics/workshops/Documents/Winter2008/miles.pdf http://www.miamiherald.com/2011/07/18/2319690/pawn-shops-thrive-in-tough-economy.html http://cfed.org/blog/inclusiveeconomy/the_most_unbanked_places_in_america/ http://seattletimes.nwsource.com/html/living/2011749726_pawnshop03.html +++