Pawnshop loan values in Singapore rose to $884 million in June 2025, a 29 percent increase from $686.4 million in June 2024, according to figures from the Singapore Department of Statistics.
The growth in lending has been linked to sustained increases in gold prices and ongoing economic challenges that have prompted more individuals to use gold and other personal items as collateral for short-term loans.
Leading pawnbroking chains such as MoneyMax Financial Services, ValueMax Group and Fund Express have all reported increased customer activity across their outlets.
Gold Price Surge Increases Collateral Values
Gold remains the primary asset pledged in the pawnbroking sector, and the recent price movements have directly impacted the amounts customers are able to borrow. The spot price of gold rose from over US$2,300 per ounce in June 2024 to over US$3,200 by June 2025. As of 2 September 2025, prices had exceeded US$3,500 per ounce.
Mr Lim Chun Seng, group general manager of MoneyMax Financial Services, said: “As the price of gold rises, the collateral value increases, allowing customers to obtain larger loans for the same quantity of gold jewellery.”
Growth in Pledges and Changing Borrower Profile
The number of pledges increased from 316,916 in June 2024 to 341,490 in June 2025, reflecting an 8 percent rise. This figure surpasses the number of pledges recorded during the pandemic in June 2020.
Pawnshop operators report a diverse customer base, including individuals and small business owners. Mr Brian Lan, spokesperson for Fund Express, which operates six outlets, said: “They tell us that the business environment is tough now, with high rentals and more businesses shutting down. The market sentiment is quite bad.”
He cited an example of a minimart operator who recently pledged around $40,000 worth of gold jewellery to meet business needs.
Broader Range of Pledged Assets
While gold jewellery remains the main form of collateral, pawnshops have reported a steady increase in the number of high-value items being pledged, such as luxury watches and branded goods.
Ms Yeah Lee Ching, managing director of retail and trading at ValueMax Group, said luxury timepieces from brands including Rolex, Patek Philippe and Audemars Piguet are increasingly being pledged. The company also accepts silver bars, collectible currency and designer handbags in near-new condition from brands such as Hermes and Chanel.
“Pawnbroking provides a means to obtain short-term cash using personal assets as collateral,” Ms Yeah said. She noted that pawn loans do not carry late fees or administrative charges. A $1,000 pawn loan, for example, incurs a maximum monthly interest of $15.
She added that the volume of pawn loans has increased and is now at its highest level based on available data.
Implications for the Jewellery Trade
As of 1 September 2025, there were 241 registered pawnshops in Singapore, according to the Registry of Pawnbrokers. Major operators like MoneyMax and ValueMax each run more than 50 outlets.
For jewellers, the rise in pawnbroking activity underscores the continuing role of gold as both a retail product and a financial asset. Increased demand for short-term liquidity through gold-backed loans may lead to a higher volume of second-hand items entering the market.
Jewellers involved in second-hand goods may observe increased activity as more individuals use personal assets to secure loans. Higher gold prices are likely to influence sourcing costs, valuation practices and pricing expectations in both retail and remodelling services.
