The main Montes de Piedad in Spain registered nearly 220,000 operations granted and renewed last year for a combined balance of about 150 million euros, an annual growth of 2%. According to the data presented yesterday by the Spanish Association of Montes de Piedad, Presea, these efforts corresponded to some 100,000 clients, with a very marked consumer profile.

The x-ray offered by the association that brings together entities such as Fundación Ibercaja, Fundación Unicaja or Montecredit explains that women recovered ground in the use of the jewelry pledge loan, being 68% of the clients (seven percentage points more than a year before). . Presea attributes this increase to “a greater link” of women with “domestic management and priorities, given the increases in consumer prices.”

By age, according to the x-ray, 37% of consumers ranged between 51 and 65 years, while another 24% were over 66 years of age. Less than 10% of clients were under 35 years of age.

By amount, most of the pawns (40%) moved between 600 and 1,500 euros, followed by those that oscillated between 300 and 600 euros (23%). 16% were between 1,500 and 3,000 euros and another 15% did not reach 300 euros. Only 6% of the efforts exceeded a balance of 3,000 euros.

The average amount per loan, adds the association, amounted to 690 euros, with an increase of 3% compared to the average amount of 668 euros per operation registered in 2021. In a year in which consumer credit has shown “some sluggishness”, these increases in balance and, in proportion, in the average amount per loan “are largely due to the growth in demand for gold worldwide”, which advanced by 18% in 2022 to reach 4,741 tons (the figure highest in over a decade).

The exploitation results obtained by the associated Pawn Shops are a “clear reflection of the economic slackness that has characterized the year 2022 in Spain”. Thus, and considering that the pledge activity is procyclical with consumer loans, and not countercyclical, the sector “has behaved as might be expected, following in the wake of consumer loans.”

The Montes de Piedad granted almost 70,000 new loans. Compared to the 71,000 in 2021, it represents a reduction of 2%, much lower than that registered in the previous year. Then, the fall deepened to 13%, greatly marked by the growth in household savings.

Recovery

The most common, explains the association, is that the duration of the commitments is 12 months, extendable for equivalent terms. Once the loan is canceled by paying the capital and the corresponding interest, the borrower recovers his jewels instantly.

Those that are not recovered end up in a public auction. When the debt is settled with the amount of the corresponding adjudication, any greater benefit is available to the client. However, this scenario is very unusual, since 97% of pawned jewels are recovered.

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