Gold price rally drives record demand for pawnbroking, Ramsdens says

Pawnbroker Ramsdens has upped its annual profit forecast following record levels of lending, as people swap their jewellery for cash amid soaring gold prices.

The lender and retailer said the higher price of the precious metal was piquing consumer demand and bolstering its profits.

Pawnbroking lending was at record levels in February and the momentum had continued into March, delivering an 18% increase to its loan book since the end of the financial year in September, the firm said.

The service enables people to take out a loan against the value of a piece of jewellery or a watch.

Ramsdens also buys people’s unwanted jewellery and then either sells it in stores or online, or to a bullion dealer.

Furthermore, the company said revenues from its jewellery shop were up by about a quarter year-on-year.

It comes as the price of gold has rallied to reach record highs at points during 2026, as investors sought refuge during global geopolitical uncertainty, conflict and worries about tariffs.

The most recent spike occurred at the beginning of March following the escalation of conflict in the Middle East, with gold hitting around 5,400 US dollars (£4,040) an ounce.

The average gold price for the year-to-date is about 50% higher than last year,  and the geopolitical and economic climate could mean it remains elevated throughout the months ahead, Ramsdens said.

The London-listed business told investors that owing to stronger trading in the first five months of its financial year and the outlook for gold prices, it was now expecting to make an annual pre-tax profit of at least £24 million, which could rise to as much as £28 million.

Analysts had previously been forecasting a profit of £21.1 million for the year to the end of September.

Chief executive Peter Kenyon said: “In addition to underlying progress across the business, we continue to benefit from the high gold price, which is significantly boosting both customer demand and profits within our purchase of precious metals segment.”

Russ Mould, investment director for AJ Bell, said: “This is the second profit forecast increase of 2026, following on from February’s trading update, and means Ramsdens is now on track to post record annual earnings in the 12 months to September 2026.

“The good news is it is not just the soaring gold price that is doing the heavy lifting.

“Ramsdens reports strong sales of jewellery and rapid growth in the pledge book at the pawnbroking operation, while the foreign currency exchange business seems steady, although there remains a chance that the conflict in the Middle East has an impact there at some stage.”

Ramsdens’ shares jumped by about a tenth on Wednesday.