According to an article in The Times of London, the pawning business in Great Britain is booming—more specifically, pawning for the rich.
“Bankers whose bonuses have not materialized, entrepreneurs suffering temporary lulls in cash flow and other formerly wealthy individuals are seeking respite at the pawnshop, more typically the refuge of the destitute,” says the article.
The rich are pawning Ferraris, fine art, Cartier jewels and rolex watching, and business has never been better.
The volume of clients has more than doubled, and the average size of a loan has tripled. Clients can obtain loans up to $1.5 million as long as they have good credit. However, why would they pay up to 60 percent interest them?
The modern-day wealth’s bank accounts are dependent upon financial markets and are more prone to sudden income shocks that can leave them short on funds. These high spenders are what’s giving the pawning business staying power.
Source: The Wall Street Journal