UNITED KINGDOM: Pawnbrokers are a booming business, especially next to London's banks
Record ID:
1532114
UNITED KINGDOM: Pawnbrokers are a booming business, especially next to London's banks
- Title: UNITED KINGDOM: Pawnbrokers are a booming business, especially next to London's banks
- Date: 17th April 2009
- Summary: LONDON, ENGLAND, UNITED KINGDOM (APRIL 8, 2009) (REUTERS) VARIOUS OF INVESTMENT BANKER BILLY BOYTON GOING INTO PAWNBROKERS NIKOLAS MICHAEL BOYTON HANDING OVER WATCH TO BE VALUED VARIOUS OF PAWNBROKER NIKOLAS ROBINSON EXAMINING WATCH ROBINSON HANDING MONEY UNDER THE COUNTER TO BOYTON BOYTON COUNTING MONEY BEFORE LEAVING (SOUNDBITE) (English) BILLY BOYTON, INVESTMENT BANKER, SAYING: "We've got a long weekend coming up so me and my family are going down to the coast. It's basically freeing up a bit of cash for us to enjoy a nice long weekend." PAWNBROKER SIGN (SOUNDBITE) (English) BILLY BOYTON, INVESTMENT BANKER, SAYING: "For the people working in the city, it's on our doorstep. I mean if someone wants to go and get money out on their credit card it's going to cost them 18 percent well you know it's half the price here." ROYAL BANK OF SCOTLAND A FEW METERS FROM THE OFFICES OF NIKOLAS MICHAEL OFFICES OF NIKOLAS MICHAEL ABOUT CAFE (SOUNDBITE) (English) NIKOLAS ROBINSON, SAYING: "With the credit crunch we looked at this area and we found that there wasn't a pawnbrokers in the area giving people a service, so we decided we would open up here and see how it went and we've had a very good response." OFFICES OF NIKOLAS MICHAEL (SOUNDBITE) (English) NIKOLAS ROBINSON, PAWNBROKER, NIKOLAS MICHAEL, SAYING: "Usually they're just strapped for cash for a small amount of time. We advise people to just do it for a short term loan and it's just to bridge a gap." VARIOUS OF PAWNBROKER MICHAEL JULIAN EXAMINING SOME JEWELLER IN UPSTAIRS SHOWROOM CITY STRATEGIST DAVID BUIK (SOUNDBITE) (English) DAVID BUIK, SENIOR STRATEGIST, BGC PARTNERS, INC, SAYING: "You can imagine people who've committed themselves. Whether its new kitchens because they've recently got married or promised their girlfriend a sapphire engagement ring and they're going to get married or they're going on holiday to the Maldives, it's all booked, they've got no money and the bank says you've had all you're going to get out of me for the time being and you know you're employer's not going to give you any money and there's no bonus forthcoming." PAWNBROKER MICHAEL JULIAN EXAMININIG A CARTIER WATCH (SOUNDBITE) (English) MICHAEL JULIAN, PAWNBROKER, NIKOLAS MICHAEL, SAYING: "Now what I'm doing is expecting this Cartier watch to see certain markings. I'm looking at the back to see if the serial code is correct, and it is. Now this watch retails for around three and a half thousands pounds (5,217 USD). I'd be prepared to loan up to a thousand pounds (1,490 USD)." VARIOUS OF MICHAEL JULIAN EXAMINING WATCH BACK OF THE WATCH CLOSE EXAMINATION OF WATCH FACE (SOUNDBITE) (English) DAVID BUIK, SENIOR STRATEGIST, BGC PARTNERS, INC, SAYING: "If you have pride you're really not being realistic about life at all and therefore I don't think anybody is either too posh or has too much pride to go into a pawn broker." VARIOUS OF MICHAEL JULIAN EXAMINING DIAMOND RINGS
- Embargoed: 2nd May 2009 09:49
- Keywords:
- Location: United Kingdom
- Country: United Kingdom
- Topics: Finance
- Reuters ID: LVABGZSAGTP28UFWZK3SM6S3SIY1
- Aspect Ratio: 4:3
- Story Text: A new pawnbroker has set up shop in the shadows of some of London's biggest financial institutions. It's the first in over a century to open in the UK capital's financial district. City workers feeling the pinch without their bonuses, are seeking alternative ways to makemeet.
Billy Boyton is an investment banker working in the city. He wants some extra money to take his family on holiday.
"We've got a long weekend coming up so me and my family are going down to the coast. It's basically freeing up a bit of cash for us to enjoy a nice long weekend." said Boyton.
"For the people working in the city, it's on our doorstep. I mean if someone wants to go and get money out on their credit card it's going to cost them 18 percent, well you know it's half the price here," he added.
Pawnbrokers Nikolas Robinson and Michael Julian set up shop just metres from the banks that until recently dished out bumper bonuses to their best staff. Now they say the same people are among their best clients.
"With the credit crunch we looked at this area and we found that there wasn't a pawnbrokers in the area that was giving people a service so we decided that we would open up here and see how it went. And we've had a very good response." said pawnbroker Nikolas Robinson.
"Usually they're just strapped for cash for a small amount of time, we advise people to do it just for a short term loan and its just to bridge a gap" he added.
With the banks reluctant to lend, pawnbroking has become an alternative means to easy credit. City strategist David Buik says it's an understandable port in an economic storm.
"You can imagine people who've committed themselves whether its new kitchens because they've recently got married or promised their girlfriend a sapphire engagement ring and they're going to get married or they're going on holiday to the Maldives, it's all booked they've got no money and the bank says you've had all you're going to get out of me for the time being and you know you're employer's not going to give you any money and there's no bonus forthcoming." he added.
Pawnbroking can be traced backed to the powerful Italian Medici family, who controlled banks and pawnbrokers in the 15th-century. Back then valuable paintings were the likely goods - today its Cartier watches and diamond rings.
Nikolas Michael charge 6 percent interest. Customers have 6 months to redeem their valuables before they're put up for sale.
In recent years pawnbroking has shed its seedy image and become more and more popular. Buik says no one should be too posh to pawn.
"If you have pride you're really not being realistic about life at all and therefore I don't think anybody is too posh or has too much pride to go into a pawn broker." he said.
No one knows how long the recession will last but it's looking like a boom time for the age-old trade of the pawn broker. - Copyright Holder: REUTERS
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