Pawn goes upmarket

The pawn shop has glammed up its image to attract a better-heeled sort of customer as people sink deeper into debt and high gold prices boost the loans their jewels can secure.

Pawn franchises with shiny new signs can be seen across the country, despite the trade's long association with the poverty-stricken who are stuck in a financial rut.

"Over the last three to four years, we have noticed the amount of professionals coming into our stores increase," said marketing manager David Towse of pawnbrokers Harvey and Thompson, which has 77 shops across Britain.

The business is one of just two pawnbrokers listed on the London Stock Exchange and shares in Harvey and Thompson have, over the past six months, outperformed the London market with an over 20 per cent gain.

Mr Towse said: "It is part of a general trend that people are beginning to accept pawnbroking... The Dickensian image of the back street pawnshop is fading."

The simple system involves a customer taking out a loan against a valuable item which is later collected, after a period of up to seven months, when they repay the borrowed money with interest.

Another factor which has assisted the pawn boom is the high in the price of gold.

The precious metal has gained nearly 10 per cent this year and more than 65 per cent in almost two years.

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