Pawnbrokers go where banks fear to tread

David Kuo, Director at leading financial website The Motley Fool - Fool.co.uk, says: "Recessions can often be good news for pawnbrokers and a trading update from Albemarle & Bond highlights why. It is reaping the benefits of going where banks fear to tread.

"It expects profits to be ahead of expectations thanks to the higher price of gold that has boosted the return on unredeemed loans. But worryingly for consumers, it is expanding its network of UK stores.

"This would suggest the recession is far from over, and credit applications through normal channels will remain tight except for those with near-perfect credit records. The longer the recession persists, the better it will be for Albemarle & Bond, and also for eagle-eyed investors that benefitted from today's 8% jump in the company's shares."