Online auction site launches for rich and famous

By Burton Frierson

NEW YORK (Reuters) - Millionaires down on their luck now have a place to sell their mega-yachts, super-cars and family jewels without having to resort to the pawn shop.

An Internet auction site devoted to millionaires launches officially on Monday and is likely to profit from the worst recession in decades, which has extended its reach to the rich and famous in the United States, BillionaireXchange said.

The company said it has already played a role in the sale or exchange of more than $180 million (107.3 million pounds) in assets during a 10-month test phase, and has noticed a trend of distressed transactions from U.S. clients.

"I would say that in the United States market that's probably the majority of the types of the transactions that we're seeing right now," Quintin Thompson, co-founder and executive partner of BillionaireXchange, told Reuters.

"Because of the current economic conditions in the U.S. we're seeing a lot of people who need to actually trade out or trade down from some of their luxury items and facilitate that transaction somewhere discreetly and privately so that they don't have to deal with the shame and or embarrassment of downgrade."

The company said its website aims to exploit a market niche between internet sales sites such as eBay, which are available to the general public, and auction houses such as Sotheby's and Christie's for fine art and collectibles.

Given the nature and price of items auction houses come to mind as potential competitors. But BillionaireXchange's completely on-line model, is likely to be a key difference.