Luxury items line shelves in Calgary pawn shops as recession deepens

What a difference a year makes.Some of the newly rich and long time wealthy in Calgary's once hot economy are now looking for fast cash because of the economic downturn, and they're turning to pawn shops.

"Right now we have one, two...10Rolexes for sale, twoPanerais, a few Tag Heuers,"saidJohn Sanford, one of the owners ofRocky Mountain Pawn on Macleod Trail, as hecounts the luxury watches in a glass case.

He has 100 more in a back room.

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The economy haschanged his clientele too,asformerly well-paid people are tellinghim they've been laid offorplan to leavetown.

"People have come in and they've said, 'That's it, I'm heading back to Ottawa, Montreal,'" he said.

About six months ago, high-end items started rolling in to his shop,such as a 5.1-carat diamond a $200,000stone and designer hand bags"whether it beLouis Vuitton, Chanel or Gucci."

In the 2008 recession, some pawn shops had to closebecause they were giving out more money than they were able to make up in sales, Sanford says.

This time, Sanford is being careful about the items he takes inbecausefewer people are buying.

"And whether it be LouisVuitton,Chanelor, you know, Gucci, it's special and sometimes the person is pawning it, getting that $400or $500, and they truly are going to be back for it."

There has been asteady stream of customers, including awoman pawningVera Wang earringsforabout $3,000, ora man who can't find steady work as a truck driver so he'sputting someart work on loan for short-term cash.

"That's a good grocery bill for a month, so yeah it's very important to get that $200," saidRobert Huntington, who has used the pawn shop for the third time this year.

He intends topay back the money he borrowed from the pawn shop,plus rent, and eventually get his art work backone of the many customers hopingto reclaim their items when things turn around, says Sanford.