Greece now reports 224 officially registered pawnshops. 90% of them have opened in the last year. What’s the story?
It’s actually quite familiar, anytime a country is faced with a recession or economic downturn, people look for a way to make ends meet and keep going. The unique combination of high gold prices and economic instability make selling and, less commonly now, pawning gold the perfect solution. To meet the demand of people wanting to sell their gold and family heirlooms, gold buyers have popped up throughout Greece. Jewelry stores now advertise that they buy gold, and some places are even buying dental gold to cash in on the high prices.
And, just like any other industry, there are people who will use this high demand to conceal less legitimate practices. While many of the new business have been licensed by the Grecian Government, there are those who have not obtained a license and are moving gold and silver out of the country to aid tax-evasion, or who are buying stolen jewelry and not maintaining proper government records.
The best thing to learn here is to be sure you trust the person you are selling your gold to, and ensure that they are licensed to buy gold. Protect yourself, and your gold, from scammers and cheats. To read more about the gold buying situation in Greece, check out this New York Time’s article.