The pawnshop market in Russia is actively growing under the influence of rising gold prices. This was reported by “Kommersant” .
As of the third quarter of 2023, the rate at which players are included and excluded from the pawnshop registry has become equal. During nine months, the Central Bank unregistered 145 pawnbrokers, while 141 new players were added. Positive dynamics were observed in September: 9 pawnshops were excluded and 19 pawnshops. Currently, 1,878 pawnshops are listed in the records of the Central Bank of Russia.
The growth in activity in the sector is associated with the strong financial performance of the sector, supported by a significant increase in the price of gold, the main collateral of pawnbrokers. According to the Central Bank, the volume of loans issued in the second quarter increased to 70 billion rubles; This is 10% higher than the previous quarter and 20% higher than last year.
“The main factors supporting the rise in gold prices are the disappearance of globalization and increasing geopolitical contradictions, the decrease in confidence in the dollar due to sanctions and the rapid increase in American government debt,” said Sovcombank chief analyst Mikhail Vasiliev.
Despite the influx of new players, experts say it will be difficult for them to become serious competitors in the market. Newcomers will face regulatory pressure, long repayment periods and difficulties in obtaining financing. According to estimates by Alexey Lazutin, chairman of the board of directors of the National Association of Pawnshops, the initial cost of opening a new pawnshop may be about 2 million rubles.
Before that, Russians were informed about the price of gold in the world market. update Historical highs approaching $2.7 thousand per ounce. The main factor was the Fed’s interest rate cut move, as well as the expectations that inflation would increase in response to the economic revival in the USA and the BRICS summit.
It was before named Top 10 countries with the largest gold reserves.