Financial firms everywhere are struggling to cope with the global economic meltdown. In London's financial district -- The City -- thousands of brokers and bankers have lost their jobs. And more lay offs could come at any time. But the misery of once high-flying executives is translating into a booming business for pawnbrokers. The World's Laura Lynch reports from London.
Photos: Laura Lynch
Lynch: It's in the so-called Square Mile, just down the road from the gleaming office towers of the once great, now faltering Royal Bank of Scotland. Go one floor up and you find it - just above a sandwich shop.
Lynch: Nikolas Michael pawnbrokers is housed where a recruitment centre used to be. Not too many firms recruiting these days. But co-owner Mike Julian says in this neighborhood, there are lots of people who need cash fast. The banks aren't lending, so they're coming here.
Mike Julian
Julian: "We've had inquiries about people pawnbrokign bentley cars and things like that. we're interested, we haven't reached a deal yet with anyone but we're open to offers if anybody's got anything of value - high value and they want to loan some cash against it we're quite happy to help."
Lynch: This is the first pawn shop to open up in the affluent environs of the City of London in a century. Where others see an economic crisis, Julian sees opportunity.
The shop opened six weeks ago. Former financial wizards quickly showed up - fancy jewellery and watches in hand.
Julian: "This is a Jacob watch and it tells the time in New York, L.A., Paris, Tokyo and London, so it's a five time zone watch. It's encrusted with diamonds on the bezel - a watch like that would retail for in New York for $ 8,000. The 'Jacob' watch
Lynch: How many diamonds are on there anyway? Julian: Tthere's around about 60 diamonds on that. Lynch: Sixty diamonds for sixty minutes, obviously. Julian: Yeah, exactly right. Lynch: Julian feels no shame in profiting from other peoples' problems. He's providing a service, he says, and the upscale clientele seem satisfied.
Julian: "There's an old fashioned idea about how pawnbroking is. it's the dickensian thing with the your grubby clothes. pawnbrokers used to be located in back streets and they would take in anything: suits, furniture. we're located in a very prominent high street and i've seen no evidence of people being ashamed as yet."
Lynch: Even as he speaks, a potential customer walks up to the other side of the bulletproof glass and slides a Rolex watch into the tray.
"Let's have a look..."
Lynch: The man wears both a suit and a worried look. He says he's a stockbroker who's just started a new job after being out of work for two months. He needs some cash until the first paycheck arrives.
Julian: "Have you got a set amount that you're after?" Customer: "Well I was after 400 quid (British pounds) but I don't know if that's a reasonable amount or not as I said I've never doen this before.."
Lynch: When Julian steps away to answer the phone, the man - who won't give me his name - tells me he really didn't want anyone to see him stepping into a pawnshop.
Customer: "To tell truth when I walked in the door I had a look over me shoulder." Lynch: "Why?" Customer: "I don't know, just pawning is seen as something I wouldn't have done in the past but there you go."
Lynch: He's told he'll have to come back later - after Julian makes certain the Rolex isn't fake. Julian opens the safe and places merchandise inside. This shop's stock in trade may be the prized possessions of the formerly wealthy. But the pawnbroking business is booming across the country as rich and not so rich alike hock whatever they can to make it through troubled times.
