In Greece’s Sour Economy, Some Shops Are Thriving

With all the contraction in the Greek economy, with employees laid off en masse and one in four small businesses forced to close, it might seem odd that new shops are springing up like mushrooms in Athens and other cities.
But the stores — pawnshops and gold dealers — are thriving as Greeks who are short of cash give up jewelry and other valuables to make ends meet and pay new taxes. The authorities reported a veritable explosion in the sector, with 90 percent of the nation’s 224 officially registered pawnshops having opened in the past year.
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Similar trends have been reported in other countries that were hit by recession. In the United States and Britain, weakening economies and turmoil in credit markets have helped gold dealers thrive. A decade ago, the same happened in Argentina, after its economic meltdown.
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In Greece, new outlets are springing up on streets where bankrupt stores have been boarded up. Competing with old-school pawnbrokers who work out of tiny stores on side streets, the new professionals lease central locations, taking advantage of falling rents. They advertise in newspapers and on television, and slip promotional leaflets under doors and on car windshields. Many also accept cars, yachts and real estate from Greeks no longer able to finance affluent lifestyles.
Many jewelers have joined in, putting placards in their windows reading “I buy gold.” And there are signs of foreign interest. One Italian jewelry wholesaler, which has opened several franchises in Greece, accepts gold teeth as well as jewelry in exchange for cash.
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full: http://www.nytimes.com/2012/01/03/world/europe/as-greece-struggles-pawnbrokers-prosper.html