Ramsdens Sees Profit Surge Amid Rising Gold Prices

Pawnbroker Ramsdens has significantly upgraded its annual profit forecast, attributing this increase to record levels of lending as consumers turn to their jewellery for cash amidst soaring gold prices. The company's lending operations reported an 18 percent growth in its loan book since the financial year ended in September 2025, with pawnbroking lending hitting record levels in February and continuing into March. Ramsdens allows individuals to secure loans against jewellery or watches and also purchases unwanted items for resale.

The Independent

The price of gold has reached unprecedented highs, peaking at around $5,400 (£4,040) an ounce in early March 2026, driven by global geopolitical uncertainty and economic concerns. The average gold price for the year-to-date is approximately 50 percent higher than the previous year, and Ramsdens anticipates that these elevated prices will persist in the coming months. The company now expects to achieve an annual pre-tax profit of at least £24 million, with the potential to rise to £28 million, surpassing earlier analyst forecasts of £21.1 million.

The Independent

The surge in gold prices has been linked to escalating conflicts in the Middle East, which have prompted investors to seek refuge in precious metals. Ramsdens has reported a significant increase in revenues from its jewellery shops, which climbed by about 25 percent year-on-year. Chief Executive Peter Kenyon noted that the high gold price is significantly boosting both customer demand and profits within the company's precious metals segment.

The Independent

Russ Mould, investment director for AJ Bell, commented on the situation, stating that Ramsdens is on track to post record annual earnings for the 12 months ending September 2026. He emphasized that the company's success is not solely reliant on the soaring gold price, highlighting strong sales of jewellery and rapid growth in the pawnbroking operation's pledge book.

The Independent

Ramsdens has expressed optimism about its financial outlook, with Kenyon stating, “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.” The company’s shares saw a notable increase of about 10 percent following the announcement of the profit forecast upgrade.

The Independent

While the current financial success of Ramsdens is evident, there are concerns regarding the sustainability of this growth, particularly if geopolitical tensions affect consumer behavior and market stability. Analysts have pointed out that while the pawnbroking and jewellery sales are strong now, external factors could pose risks to future performance.

The Independent

• “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.” — Peter Kenyon, Chief Executive, Ramsdens

The Independent

• “ open image in gallery Pawnbroking lending hit record levels in February, continuing into March, and boosting its loan book by 18 per cent since the financial year ended in September 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.” — Russ Mould, Investment Director, AJ Bell

The Independent

As Ramsdens navigates this period of growth, the interplay between gold prices and geopolitical events will remain a critical factor in its ongoing success.

The Independent