SINGAPORE: Pawnshops in Singapore disbursed more than S$5 billion (US$3.9 billion) in loans in the first half of last year, the highest amount for the same period in the past decade.
The Singapore Pawnbrokers’ Association attributed the surge to rising gold prices and a stronger appetite for liquidity.
Pawnshop operators have also noted a shift in demographics, with younger customers increasingly turning to pawnbroking for quick access to cash.
The boom comes as gold prices enjoyed a strong run last year, surging more than 65 per cent year-on-year to hit record highs.
Higher gold prices are allowing owners to unlock more value without selling their assets, observers said.
The Singapore Pawnbrokers' Association says this has made gold an increasingly attractive safe-haven asset.
Today, a pure gold necklace that was worth S$10,000 in 2023 is valued at around S$22,000.
At his own shop Heng Seng Pawnshop, association president Ivan Ho Khiam Seng saw pawn amounts rise 15 per cent last year to S$4.2 million. Nine in 10 items pawned were gold.
Mr Ho said pawnbroking offers flexibility not found in traditional loans.
“If you pledge it with the pawnbrokers, anytime you can redeem it at your own wish,” he added. “You have options, not like the banks, they have a lot of red tapes and restrictions.”
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.”
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.
A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave
This comes as the demand for gold is much bigger than the supply side, said Mr Shaokai Fan, global head of central banks and head of Asia-Pacific at the council.
About 75 per cent of annual gold supply comes from newly mined gold, with the remaining 25 per cent coming from gold recycling such as old jewellery sold back into the market by investors.
Mr Fan said pawning allows gold owners to access cash without selling their assets, enabling them to reclaim their gold later if prices rise.
“If you believe that the value of your gold is going to rise, then if you pledge it now, and you get money for it, you don't sell the gold,” he explained.
“You still get the gold back and it might be worth more later. So I think this is becoming a more attractive way of using gold.”
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The Singapore Pawnbrokers’ Association attributed the surge to rising gold prices and a stronger appetite for liquidity.
Pawnshop operators have also noted a shift in demographics, with younger customers increasingly turning to pawnbroking for quick access to cash.
YOUNGER CUSTOMERS
The boom comes as gold prices enjoyed a strong run last year, surging more than 65 per cent year-on-year to hit record highs.
Higher gold prices are allowing owners to unlock more value without selling their assets, observers said.
The Singapore Pawnbrokers' Association says this has made gold an increasingly attractive safe-haven asset.
Today, a pure gold necklace that was worth S$10,000 in 2023 is valued at around S$22,000.
At his own shop Heng Seng Pawnshop, association president Ivan Ho Khiam Seng saw pawn amounts rise 15 per cent last year to S$4.2 million. Nine in 10 items pawned were gold.
Mr Ho said pawnbroking offers flexibility not found in traditional loans.
“If you pledge it with the pawnbrokers, anytime you can redeem it at your own wish,” he added. “You have options, not like the banks, they have a lot of red tapes and restrictions.”
Related:
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.
A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave
This comes as the demand for gold is much bigger than the supply side, said Mr Shaokai Fan, global head of central banks and head of Asia-Pacific at the council.
About 75 per cent of annual gold supply comes from newly mined gold, with the remaining 25 per cent coming from gold recycling such as old jewellery sold back into the market by investors.
Mr Fan said pawning allows gold owners to access cash without selling their assets, enabling them to reclaim their gold later if prices rise.
“If you believe that the value of your gold is going to rise, then if you pledge it now, and you get money for it, you don't sell the gold,” he explained.
“You still get the gold back and it might be worth more later. So I think this is becoming a more attractive way of using gold.”
Continue reading...