Is Pawn good for you?

It is projected that the cost of living in the U.S. is projected to continue its upward trend in 2026 and 2027, with the US Consumer Price Index (CPI) expected to reach approximately 333.85 and 341.87 points, respectively, according to Trading Economics. In the UK, it is expected to peak in early 2026 and then very slowly decline.

During these times, credit lenders such as banks, buy-now-pay-later companies like Klarna, credit card companies, discount stores (BME, etc.) can all do well.

A previous favourite of mine had been the pawn shop business H&T Group plc (HAT). I look at buying shares in this company during recessions and when the gold price was high because many people would pawn their gold jewelry and as the value of gold went up, the value of their stock would go up too.

However, I discovered that H&T had been bought up by an American group FirstCash (FCFS) in May 2025 for a 40% share price premium. FirstCash shares have risen 20% in the last 3 months and is up 4% so far today. It has gained 30% over the last year.

Some investors see the price going to $170 and it looks like it is on it's way.

Ramsdens Holdings is another pawn brokers that provides growth and a good dividend. Worth a look!

If you think that the American economy is facing a recession in 2026 and 2027 due to Trumpology and the gold price will continue to be high, then maybe you should buy into the pawn business!

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