SGX-listed pawnbrokers, stocks ride gold rally as bullion breaks US$5,000 level

SINGAPORE – Pawnbrokers have emerged as beneficiaries of gold’s historic rally as the

yellow metal crossed the psychological US$5,000 mark

to set yet another record. 

After already gaining much in the past year or so, gold prices are still rising on a steep trajectory amid geopolitical tensions.

On the Singapore Exchange (SGX), shares of pawnbrokers and other gold plays soared on Jan 26. They have also made steady gains in the year to date, and in 2025.

Pawnbroker, financier and luxury retailer MoneyMax Financial was the biggest beneficiary, soaring 13.2 per cent. It has surged 40.2 per cent in the year to date, and is up nearly 330 per cent over the past year.

This comes as the Catalist-listed pawnbroker’s proposal to transfer its listing to the mainboard on Jan 23 received in-principle approval from SGX. The move to the mainboard – which draws larger companies – is set to enhance shareholder value and provide MoneyMax with a platform commensurate with its scale and market position, given its growth in both network and earnings over recent years.

Gold producer CNMC Goldmine was not far behind with an 11.9 per cent gain as at the midday trading break, having booked even bigger gains over the past year of about 404 per cent.

MoneyMax competitor ValueMax shot up 10.5 per cent as at the midday break on Jan 26, up 6.1 per cent in the year to date, and has spiked about 158 per cent in the past year.

Aspial Lifestyle, which owns jewellery chains Lee Hwa and Goldheart and pawnbroker Maxi-Cash, was up 11.1 per cent at midday. It has jumped 25.6 per cent in the year to date, and about 93 per cent in the past year.

Meanwhile, the SPDR Gold Shares exchange-traded fund was up 3.3 per cent as at 12.55pm. It has booked about 78 per cent gains in the past year.

Proxies for gold

Pawnbroking firms are regarded as proxies to the increase in gold prices as they hold large inventories of the yellow metal, which is used as collateral for loans. 

Ms Carmen Lee, head of equity research at OCBC Group Research, noted that most moneylending companies usually accept gold jewellery as pledges for cash and usually hold a large percentage of gold inventories versus other assets, such as diamonds. 

Gold prices rose “65 per cent in 2025 and are up 15 per cent so far this year”, she said. “(Therefore,) most of these inventories held by the moneylenders are likely to be at prices that are significantly lower than current prices.”  

This could imply potential gains for these companies, Ms Lee added. 

RHB senior research analyst Alfie Yeo concurred that higher gold prices can cause pawnbrokers’ collateralised gold inventory to be more valuable.

“The value of loans has historically been positively correlated with gold prices. Pawnbrokers get to lend more (better loan to value) for higher interest income as gold prices increase,” he said. 

As higher gold prices tend to drive more loans, which, in turn, boost interest income and earnings, higher gold prices should be positively correlated with share prices to some extent, he said.

“Based on our analysis, the correlation of pawnbrokers’ share price to gold price ranges from 0.5 to 0.8, with pure-play pawnbrokers at a relatively strong 0.8,” Yeo said. 

Continued momentum in 2026

Having enjoyed strong gains in 2025, SGX-listed pawnbrokers could see continued momentum in 2026, said OCBC’s Ms Lee. 

“As shared in Q1, due to their holdings of gold assets and with the sharp appreciation in gold prices in the last one year, these companies are being reassessed based on their gold inventories,” she said. 

This comes as the price of gold is set to rise further. 

Ms Alexandra Symeonidi, senior corporate credit and sustainability analyst on William Blair’s emerging markets debt team, noted that a “growing consensus among market participants that the dollar might remain weak” could contribute to the continued rise in gold prices.

With gold remaining as the easiest and traditionally the preferred asset form to pledge for cash, its strong performance will continue to benefit SGX-listed pawnbrokers, Ms Lee said. 

THE BUSINESS TIMES