Just ask the second-hand goods stores now doing brisk business.
Apparently, more people are visiting them these days, both to sell and buy.
Mr Jeremy Taylor, managing director of the Cash Converters chain of stores, noted that even as the world struggled with the financial crash in 'black October', his stores chalked up the highest monthly sales for the year so far.
He said: 'Our five stores had a total of about $900,000 in sales in October. I was surprised because I thought my shops would be impacted by the recession.'
Mr Taylor said the shops have average monthly sales of about $750,000.
'We haven't seen a drop in retail sales. Indeed, we sold a three-carat diamond ring for $27,000 last month.'
Mr Taylor claimed that for jewellery, his shops offer rates that are more competitive than pawnshops, which evaluate jewellery on the weight and purity of gold.
He said: 'We look at something and if it has a high resale value, we pay a good price.'
People who sell them items are mostly heartlanders as the Cash Converters stores are in Housing Board estates, but Mr Taylor also sees white-collar workers in the crowd.
He said: 'We've had people selling two or three bags of golf clubs. The other day, we had one woman who sold four branded handbags that were less than three months old. We paid $400 to $900 for each bag.'
During negotiations, staff usually ask customers why they want to sell the items and sometimes, they reveal they need cash.
In the last two months, Cash Converters' purchase of used goods, which ranges from household items to liquor, rose by 22 per cent.
Some try to sell items that are not in demand, such as handphones without cameras, because they need cash or are upgrading to new phones.
Mr Taylor said: 'If it's an item that has low demand, we'll still buy it but at a low price.'
When The New Paper on Sunday visited the Cash Converters outlet in Toa Payoh on Friday, there were 20 people selling their goods in the one hour that we were there.
Many of the sellers were casually dressed but there were also well-dressed ones, including housewives toting Louis Vuitton and Gucci handbags.
None of them cited cashflow problems as a reason for selling their items.
One finance executive who declined to be named was selling an Osim massager.
Dressed in high heels and a long black dress, she was carrying a Tod's handbag and said she lived in a Novena condominium.
Maximising cashflow
She said: 'The recession hasn't hit me yet. I'm selling this as I'm clearing my home and the rag-and-bone men don't visit my area.'
Another seller, housewife Sylvia Chian, 48, had travelled from her landed home in MacPherson to sell more than 20 CDs.
She said: 'My daughter doesn't watch these any more and it's a waste to throw them away. I got only $34 and it's so little.
'The cashier said the boxed sets are counted as one CD. If I knew, I would have removed the boxes.'
Some companies are also turning to Cash Converters as a means to liquidate their assets.
One company sold 90 laptops to Cash Converters as it was upgrading its staff computers, while other companies have sold fax machines and office chairs to the chain.
Mr Taylor said: 'We're likely to see more corporate sales as companies try to maximise their cashflow during the recession. We'll try to be flexible in what we buy.'
Those dealing in second-hand branded bags are also doing well.
Mr Alvin Chua, who owns Prestige Collector, said business at his shops in Amara Hotel and United Square is as good as before the financial crisis.
He added, however, that it was probably too early for people to feel the impact of the recession.
He said: 'We have a steady stream of clients buying and selling handbags. But if they're affected by the recession, they won't tell us.
'Usually, they'll say they don't like the bag any more or that they want to get a newer bag.'
He said he sells the bags 5 to 30 per cent cheaper than brand-new ones.
Mr Chua added that brands like Chanel, Gucci and Louis Vuitton are popular in his shops.
He said: 'A Hermes Birkin bag would only be about 5 to 10 per cent cheaper than a brand-new one, because of its popularity. Christian Dior and Fendi bags aren't as sellable so I sell such bags at 30 per cent less.'
Ms Julie Er, owner of The Attic Place, which also sells pre-owned branded handbags, said more people are selling their bags than before the recession.
She said: 'Good times, or bad, our business is good. In good times, people sell their old bags to get new ones and in bad times, people buy second-hand bags to save money.'
Ms May Fong, owner of Madam Milan,a shop which sells pre-owned handbags with outlets in Raffles Place and Tanjong Pagar, echoed that, saying: 'Business was slow last month but it's picking up. For those who can't afford a brand-new designer bag, a second-hand one is the next best thing.'
But those dealing in gold items have seen profits drop.
Pure gold currently sells for $44 a gram, down from a peak of $49 a gram.
Mr Lary Liang, who buys second-hand gold for his shop, 1st Jewellery, said: 'I still have up to 20 customers a day - the same as before. But my profit margins are down because gold prices are lower.'
This article was first published in The New Paper on November 9, 2008.
