In Argentina’s strangled economy, one industry is thriving: pawn shops that buy gold and other family treasures that many are forced to sell to pay their bills.
“When you’re drowning in debt, sentimentality falls by the wayside,” said Mariana, 63, who went to a gold dealership in Buenos Aires to sell a watch her grandfather gave her father as a graduation present.
Inflation of 270 percent year-over-year has eaten away at her pension as a court clerk, and she will use the cash for housing costs and late health insurance payments.
With an austerity-hit economy in recession as President Javier Millay makes good on his vow to cut decades of government overspending, Mariana — who asked not to give her last name — is far from alone.
While a neighboring shoe store hasn’t had a single customer for hours, hundreds line up daily at El Tasador, one of the main cash-for-jewelry stores in the heart of Buenos Aires, where “we buy gold” signs abound.
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“There have been a lot of people lately, I think because of what’s going on in the country,” said Natalia, one of the shop’s four appraisers, who did not give her last name for security reasons.
He said the increase in customers came from “people who maybe had pieces they weren’t planning to sell and decided to because they can’t make ends meet.”
Natalia said the business was inundated with more than 300 daily transactions — triple the amount seen a year ago.
“We’ve increased staff and increased hours because we can’t cope.”
Victorian jewelry and cufflinks
Daniel, a 56-year-old unemployed accountant, goes into several shops to appraise a silver key ring, but leaves disappointed. He was barely offered the price of a subway ticket.
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“The situation is difficult. Life in Argentina is very expensive,” he told AFP.
Carlos, who runs a small jewelry store, said he has a steady stream of customers, but no one is there to buy.
“They bring in anything to evaluate, especially at the end of the month when the bills come in.”
Gemologist Natalia said that all social classes frequented her shop.
While half of Argentina’s population now lives in poverty, it was once one of the richest countries in the world between the 19th and early 20th centuries, and many people have something valuable to pawn.
“The classic is the wedding ring, but they also carry Victorian jewelry, from the ‘belle époque’ that came from grandparents and great-grandparents, one-of-a-kind pieces,” Natalia said.
Even a few decades ago it was common for men to have gold cufflinks or for women to be given a gold watch when they turned 15, he added.
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“Gold has always been sold. What has changed is why it is sold,” Natalia said.
“Before it was to renovate a house, buy a car, throw a party. Today it’s because ‘I can’t make ends meet’, ‘my benefits have increased’ or ‘I’m out of a job.’
Source: AFP