This is the time of year for the annual ritual of parents cramming into pawnshops to pledge their property for quick money for their children's tuition fees and school uniforms.

The rising price of gold has made the pawnshops even more popular. The government's pawnshop business last year grew by one-fifth from the previous year and is expected to rise a few more percentage points this year, thanks to an already large business base.

For those who have never stepped inside a pawnshop, they act like an International Monetary Fund for small-to-medium customers who want quick cash. Just slip, say, a gold necklace over the counter and snatch up a couple of thousand baht.

In the past, people tended to be shy about entering a pawnshop. They would look around to make sure they could slip inside without being noticed.

These days, however, they are no longer dingy places. The reception cashiers are friendly and equipped with information such as the price of similar items.

By the year-end, government pawnshops will be decorated with glass partitions like commercial banks.

The interest rate for the government's pawnshops is low at a mere 0.75 per cent for the first Bt3,000. Then, the rate grows progressively and varies according to the amount. But it is still lower than commercial banks.

In the past, pawnshops accepted almost everything, from kitchen utensils to TV sets.

But now, 85 per cent of the pledged items are jewellery and gold. People are rushing to pledge gold at pawnshops to cash in on rising prices.

The rest of the pawned stuff is computer notebooks and electrical appliances. However, the rapid revolution in electronics has discouraged shop operators from accepting items like VCR players, which have become obsolete very fast.

Jeerawat@nationgroup.com