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Entries in Pawn (2)

Monday
May142012

Nation's '1 Percent' Turn to Pawn Shops for Quick Cash

iStockphoto/Thinkstock(BEVERLY HILLS, Calif.) -- A pawn shop next to the likes of Hermes, Tiffany’s and Chanel on Rodeo Drive would have, just a few years ago, been an unheard of sight.

But the classic pawn shop, where you sell or get a loan for your jewelry to pay back later, is making waves in the most unlikely of places -- Beverly Hills.

The recession has proven that even the richest of the rich fall on hard economic times and, now, when they need fast cash, more and more of the nation’s “1 percent” are electing to trade in their jewels.

Yossi Dina is the owner of South Beverly Wilshire Jewelry and Loan, an exclusive pawn shop that caters to the rich.  Clients stream into his Beverly Hills store offering valuable merchandise in exchange for cash, fast.

One such client is Vanessa Kalcheim, a Beverly Hills hairdresser going through a divorce.  She brought in a Harry Winston diamond necklace with a $600,000 retail price tag for Dina to appraise.

“Nobody will give me a loan,” Kalcheim told ABC News.  “The jewelry doesn’t work for a bank so my best option was to go to a pawn shop and try to sell it.”

Kalcheim said she hopes the necklace will bring her quick cash to hold her over until she receives her settlement from her divorce.

“I need to pay for them [her children],” she said.  “The clothes, the food, if I want to go to Disneyland.  Children cost money.”

Dina estimates Kalcheim’s necklace will sell for around $300,000 to $400,000.  He offers to give her $150,000 to $200,00 for a loan on the necklace and then pay her the difference if the necklace sells.  It’s a deal Kalcheim accepts immediately.

“First I am going to look for a new place to live and pay the down payment with this money,” she says.  “And start over.”

The transaction shows that a new breed of pawn shops are no longer seedy places with barred windows.  They’re now hot spots for buying and selling used goods, and even the focus of reality TV show fame.  In short, business at pawn shops is booming because the economy isn’t.

“We are in a bad time and it’s getting worse, but rich people buy,” Dina said.  “People come here at the worst time, and they leave feeling great.”

“The difference between me and the bank is with the bank you have to wait 60 to 90 days,” he said.  “With me, it’s immediate.”

Copyright 2012 ABC News Radio

Thursday
Apr212011

Gold: As Prices Rise, Teeth Come Out

Baerbel Schmidt/Digital Vision/ Thinkstock(NEW YORK) -- Gold prices are so high now -- over $1,500 an ounce -- that consumers are cashing in anything they've got that has gold in it, including teeth, bridges, crowns and other dental work.

"I've seen them pop the gold right out of their mouth," says Dave Crume, president of the National Pawnbrokers Association and executive vice president of Wichita, Kansas pawnbroker A-OK Enterprises.

"It's a little awkward," he admits, "but I've see them take out a tooth."

The gold-selling trend, which started picking up steam two years ago, has become only stronger now, as new ways have arisen for customers to unload their gold.  It can be sold via mail, the Internet and Tupperware-like "gold parties," such as Premier Gold Parties, where a group of friends meet to sell their gold in a home setting.

In Texas, a seller can pick up dinner and sell her tiara at the same time: most of the 50 locations of Gold & Silver Buyers, the state's biggest precious metals buyer, are inside or alongside supermarkets.  So great is the volume of their business that they do their own smelting -- an added efficiency that translates, according to president Larry Gray, into better prices paid to customers.  Items sold have included a platinum surgical implant, discovered in the cremated remains of a loved one.

Nationwide, the incentive to sell is strong. The U.S. economy remains soft; unemployment remains high.  Even people not in need of extra money, says Crume, are selling now to avoid missing what they perceive may be the market's top.

Prices paid for gold jewelry vary widely.  "They're all over the board," says Crume.  "One place will pay you $100 for what you've got; another will pay $1,000."

But in the past three months, says Crume, prices have begun to converge.

"It's true whether you're selling to a jewelry store or to a pawnbroker," he says.  "The market's getting more competitive -- a benefit to the consumer."

In the past, sellers were getting "maybe half the market price for scrap gold.  Now they're getting more like 70 or 80 percent."

Copyright 2011 ABC News Radio







ABC News Radio