Brits cashing in jewellery at pawnbrokers as gold price hits record high
Pawnbroker Ramsdens has significantly raised its annual profit forecast, attributing the rise to record loans as consumers increasingly turn to their jewelery for cash amid rising gold prices.
The lender and retailer noted that the high price of the precious metal increased demand and increased profits.
Pawnshop loans reached record levels in February, continued through March, and increased the loan book by 18 percent since the fiscal year ending in September.
Ramsdens’ service allows individuals to take out loans against jewelry or watches.
The company also purchases unwanted items to sell in stores, online or to bullion dealers. In addition, revenues from jewelry stores increased by approximately a quarter compared to the previous year.
This comes as the price of gold is on the rise to reach record highs through 2026 as investors seek refuge amid global geopolitical uncertainty, conflicts and concerns about tariffs.
The latest rise occurred at the beginning of March, following escalation of conflict in the Middle East, with gold reaching $5,400 (£4,040) per ounce.
Ramsdens said the average gold price year-to-date was around 50 per cent higher than last year, and the geopolitical and economic climate could mean the gold price remained high in the coming months.
The London-listed business told investors it now expects to make annual pre-tax profits of at least £24 million, which could be as high as £28 million, due to strong trading and the outlook for gold prices in the first five months of its financial year.
Analysts had previously forecast profits of £21.1 million for the year to the end of September.
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Chief Executive Peter Kenyon said: “In addition to fundamental progress across the business, we continue to benefit from the higher gold price, which has significantly increased both customer demand and profits in our precious metals purchasing segment.”
Russ Mould, investment director at AJ Bell, said: “This is the second profit forecast increase in 2026 following the trading update in February and means Ramsdens is on track to deliver record annual earnings in the 12 months to September 2026.
“The good news is that it’s not just rising gold prices that are doing the heavy lifting.
“Foreign exchange trading looks stable, with Ramsdens reporting strong jewelery sales and rapid growth in the pawn book at its pawnshop operation, although the possibility remains that the conflict in the Middle East will have an impact here at some point.”
Shares in Ramsdens rose by nearly a tenth on Wednesday.
