Chamber, BID Presidents Lukewarm on Cash for Gold Shops

More cash for gold shops have popped up in recent years in Lindenhurst - a sign of the times signaling that the economy has yet to recover.

"When you have an economy such as this one we have now, there are always going to be people who step up who might take advantage of others in need, unfortunately," said JoAnn Boettcher, president of the .

Lukewarm Welcome
While they seem to be filling empty storefronts the tough economy has laid to waste, these cash for gold shops aren't necessarily being warmly welcomed by some in the Village.

"I've noticed more of them, yes, but I'm not 100 percent for them; they're kind of an eyesore, with their signs," said John Frenna, president of the (), Chamber member and owner of .

The is a separate taxing district established by the Village to improve businesses. Owners agree to the additional tax, which is invested back into the district to make it more appealing to residents.

However, he said could only speak for himself as a Village business owner since it was clear it hasn't been a big topic among BID members.

"I can't speak for the whole BID - I'd have to discuss this further with the board, but I'm personally not a big fan of these shops," he said. "I think it's really more of the idea of the signs that advertise that they buy cash for gold that they plaster in the windows that bother me."

Perception and Classification
Frenna and Boettcher also put them in the same category as check-cashing places - much the way the Village and Town have put them in the same category as pawn shops.

In fact, in the eyes of the Village they're seen as something more akin to pawn shops than jewelry shops since they advertise that they buy and sell gold.

This distinction - and the possibility of the they could attract - has caused the to take a closer look at them and pawn shops as a whole. (To read more about this, click .)

And, according to officials, the Town does require pawn shops to carry a higher insurance premiums due to the possible safety and security risk they might represent with a lot of expensive merchandise and cash.

That risk is another concern for Frenna, but he doesn't personally know of any problems with these cash for gold shops or with neighboring businesses. Boettcher is not familiar with any problems either.

That's mainly because neither has had much contact with any of the cash for gold shops that have come into the Village.

"I know some people with reputable places, but I don't personally know any in Lindenhurst," Boettcher said.

"I haven't been in touch with anyone who has one of these shops," Frenna said.

Mayor Tom Brennan echoed those statements when asked by Lindenhurst Patch, but he said he'd welcome any of those businesses to become more involved with the community or the Chamber of Commerce. The sentiment was shared by Boettcher and Frenna.

However, right now, it seems, cash for gold shops have kept to themselves.

And while they currently seem to pose no specific threat or risk to the community, they do seem to pose a threat to the perception of the Lindenhurst community, given their classifcation by the Village and Town and their immediate association with other pawn shops and check-cashing places.

Long-Term Viability
There's also the question about whether these shops will last in Lindenhurst if the price of gold drops.

"Of course it's a trend while gold is up - and while people are strapped for cash and have some broken or unwanted gold jewelry," Boettcher said.

"That's the problem, though," she continued. "They never really turn into a jewelry shop when they start out as cash for gold. But if they start out as a jewelry shop, then start to buy gold, then I could see it as something that's viable," she said.

But what about another type of established business taking on a cash for gold component?

Frenna wouldn't welcome that. He thinks that anyone with the money to buy gold could do it - "they could make a ton of money from it" - but he's not for stores like this opening up all over the Village.

"I have no objection to jewelry shops buying gold, if it's their business," he said. "I had an uncle who was in jewelry for years, so I know they could buy gold jewelry and either sell it or melt it down."

His opinion is in line with Mayor Brennan's.

Barber Shops Buying Gold?
"That's one of our dilemmas. We want to see what we can do," the mayor said, adding that he doesn't want to limit business either. "But we don't want signs going up in barber shops."

According to Brennan, there've been several instances in the Village where barber shops have put up signs saying, "Cash for gold" or "We buy gold."

He's not sure why it's happening, nor why it seems to be that a few barber shops have done that, but he pointed out several places where this has happened.

"There was one near Delaware Avenue and Montauk Highway. And I believe there was one that used to be near South Eighth Street and Montauk," Brennan said.

And he doesn't want that to continue. "It makes you wonder why a barber shop would do that," he said.

Boettcher isn't aware of any other types of businesses - in particular barber shops like the mayor pointed out - that have put up signs and advertised that they bought gold.

"But now I'll have to go out and see for myself," she said.

And Frenna said he's only noticed one barber shop in the Village that previously had a sign in the window. It's since been taken down, but he wasn't sure why it was put up or why it came down.

Editor's Note: Lindenhurst Patch will continue to look at the business trend of cash for gold shops in Lindy in the coming weeks.

We'll talk to the , the , the shops themselves, their business neighbors, the Town, the and other business experts about their long-term viability.

Check back next week for the in the series. Missed last week's installment? Click .

Be sure to share your thoughts about this business trend in the comments below, on Facebook and Twitter, and or by e-mailing barbara.loehr@patch.com.