Gold prices have soared in the past year, significantly impacting Norway's only pawn shop in Oslo, where an increasing number of Norwegians are coming in to secure loans against gold.
The price of gold has experienced a dramatic increase over the past year, a trend that is being reflected in the operations of Norway’s only pawn shop located at Kirkegata 19 in Oslo. According to the shop's general manager, Yunus Celik, the rise in gold prices appears to be unrelenting, leading to more Norwegians seeking loans against their gold assets. Observing the market trends, Celik stated that it will be interesting to see where the gold prices stabilize by the end of 2026.
Celik points out that the pawn shop business tends to flourish during times of global uncertainty, such as wars, pandemics, and major political events. These circumstances often lead individuals to seek quick liquidity through pawn loans, thus benefiting the pawn industry. The data supporting this trend reveals a steady increase in the pawn shop's turnover, climbing from 17.3 million NOK in 2022 to 28.7 million NOK projected for 2024.
Notably, gold currently represents 90% of the items being pawned, underlining not only the volatility of the global market but also the reliance of many individuals on gold as a stable asset during turbulent times. Overall, this situation demonstrates a broader economic principle where increased gold prices during crises can drive growth for businesses in the pawn sector.
