You know the economy is bad when the rich have to start pawning their valuable assets. Well that’s exactly what’s happening in sunny California. Beverly Hills, that is!


According to the NY Post, owners of pawn shops are seeing big bank these days. More and more doctors, lawyers, and celebrities are showing up at high-end pawn shops to exchange goods for cash. For instance, one pawn shop on Rodeo drive carried a 18-carat white gold bracelet with 69 diamonds priced at $2,900 and they also had an 18-carat yellow gold Rolex Yachtmaster II that was on sale for $18,500.

Because bank lending has shriveled up dramatically, pawn shops say people are flocking to their establishments to get loans.

High-end pawnshops aren’t like most of the 10,000 dealers affiliated with the National Pawnbrokers Association, a Keller, Texas-based trade group. The average US pawn transaction is $75, according to the association’s Web site.

At Tabach-Bank’s shop, “confidential collateral loans,” as they’re called, have been made on art works by Pablo Picasso, Andy Warhol and Jean-Michel Basquiat. Amounts loaned range from several thousand dollars to “six- and seven-figure deals,” he said, with clients using the money to cover the mortgage, make alimony payments or finance cosmetic surgery.

South Beverly Jewelry and Loan, also in Beverly Hills, has seen business triple in the past six months, said owner Yossi Dina. Some of the collateral is in a parking lot: about 60 cars, including Ferraris, Porsches and a Bentley. “We’re making loans today we never used to,” Dina, 54, said. “Millions – never used to have that. We’re selling a necklace now, the client wants $2.7 million.”

Under California law, a pawned item remains in a shop for four months and 10 days, after which the client may get it back by paying off the loan or delay redemption by paying just the interest.

Well it looks like times are really hard. 🙁 But hey, if you ever wanted to style out like the rich and famous, shop at your local pawn shop. There’s no telling what designer stuff you can find.