GOLD TO CONTINUE GLITTERING
Looking ahead, analysts expect gold to remain an attractive investment option.
Ms Yeah Lee Ching, managing director of retail and trading at ValueMax Group, one of Singapore’s largest pawnbroking chains, said customers are “bringing in more gold in all kinds of designs”.
“They are of a higher value than before. With gold prices at elevated levels, even items that are small and tiny are now meaningful in value,” she added.
She noted that more people pawned items last year compared to 2024. Younger professionals in their late 20s to 40s are also using instant cash to support business needs.
“This is because pawning is becoming more mainstream for raising short-term financing,” said Ms Yeah.
Interest charges also tend to be lower, as the loan amounts are smaller. There are no late fees or administrative charges, unlike bank loans.
“Pawning will increasingly be seen as a smart cash flow tool. What we are seeing is smarter financial behaviour,” said Ms Yeah.
“Customers are leveraging the higher gold prices to access liquidity while retaining ownership of their assets. So pawning today is less about necessity and more about financial flexibility.”
GOLD FUELS DEMAND
The trend is not limited to Singapore.
The World Gold Council says pawning has been gaining popularity in India in recent months, and it expects the momentum to continue.