This is an interesting story on two levels.
On the first level, it is fascinating to see how niche businesses like pawnbroking have also been affected by the rise in gold prices. H&T, the UK’s largest pawn broker, typically disposes of about a fifth of its stock as scrap but with Gold prices at record levels last year scrap profits jumped from $1.4m to $4.8m on the back of the rise in gold prices alone. Though it is logical that any holder of gold should have benefited from the strong gold prices, pawn brokers aren’t the first business you think of when metals spike.
On another level it is interesting that a business with a sound sense of market prices has hedged it’s forward gold sales through to 2010. It would seem the word on the street is Gold has peaked ” until 2010 anyway.