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California Pawn Shops Increase Business

November 14, 2008 by Administrator 

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According to a recent report by Bloomberg, California pawn shops have seen a dramatic increase in business over the past several months. The CEO of Beverly Loan (sitting in an office strewn with 18k gold bracelets, Rolexes, diamonds, and other luxury items worth thousands of dollars) is quoted as saying, not surprisingly, that business is booming.

It seems that as regular lenders continue to tighten their belts, California residents are turning to pawn shops and jewelry buyers for quick cash to make ends meet or fund that next vacation. High end pawn shops like Beverly Loan or jewelry specialists like San Diego Jewelry Buyers are not like regular pawn shops, whose average transaction is around $75. At these elite establishments transactions can range from the tens of thousands to the millions. One jewelry and loan operation in Beverly Hills in fact has a parking lot full of Ferraris, Porsches, and other high performance cars which have been used as collateral for loans, while another loan operation has been seeing art work from masters such as Picasso and Andy Warhol.

The only problem with the increased business among these pawn shops is that many people are now choosing just to leave the item behind, when the pawn shop owners would much prefer to help the client be able to hold onto their item if they can arrange a way to pay back the loan. California law states that a pawned item remains in a shop for four months and 10 days. After that time, the client can get their item back by paying off the loan, or they can delay redemption by paying just the interest. The average interest rate at luxury pawn shops is usually around 4 percent.

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As pawn shops in San Diego and cities across the state increase business, shedding their unwarranted “shady” image, more traditional lending institutions are now joining forces with pawn shops: City Loan Forms Alliance.

San Diego Pawn Shops, Gold Buyers, Gold Refineries, & More

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