Gold is precious. Gold is a unique and valuable asset. Gold is a highly demanded commodity. That’s why many people are rushing into investing in Gold. Plus, gold is highly treasured. That’s why banks and other financial institutions are now accepting gold as collateral for taking loans. Here are a few things you need to know regarding using gold as collateral for securing loans.
What to Expect
When using precious metals as collateral, you only borrow a minimum of $50,000. You’ll receive a loan that’s up to 80 percent of the value your metals. It’s also important to note that these loans are often repaid within 180 days. But after 180 days, you have the option of renewing your loan. The lender holds the precious metals used as collateral for your loan until the loan is fully repaid. If you fail to repay the loan on time, the lender might have to repossess your items.
Most lenders take into consideration the weight and quality of your precious metals. They also consider damaged or broken items. The valuation is often as unique as the item being evaluated and is only carried out by experienced in-house professionals. So, you can rest assured that you’ll always get the highest possible amount.
Application Process
Applying for secured loans on precious metals is super-easy. All you need is to fill out a simple application form, provide a description of your pieces, and provide pictures. You’ll also be required to provide valuation receipts and certificates alongside any other relevant information.
Whether it’s gold coins, broken jewelry, gold bullion, scrap gold, platinum, or silver, the value often depends on your item’s weight and carat purity. The lender looks at the percentage of gold available in a particular item in relation to the current gold spot price. Other accepted precious metals include diamonds, jewelry, sterling flatware, watches, as well as silver bars and coins.
How to Secure the Best Deal
To get an affordable loan, you need to find a lender with years of experience in collateral lending. Make sure that the company you’re considering is built on professionalism, accuracy, and consistency. They should be able to evaluate your precious metals and gemstones while also educating you on the loan process.
After evaluating, weighing, and examining your valuables, the lender will go ahead and offer you the best loan amount possible. However, if you aren’t satisfied with the offer, you can always ask for a counter offer.
Key Takeaway
Do you have short-term cash flow needs? Well, it’s now possible to secure a loan that’s backed by precious metals like gold, silver, and platinum. This is an incredible option for most precious metal investors since traditional banks won’t loan against such metals.
The Bottom-Line
Don’t let the lack of money pin you down. Of course, money is becoming increasingly scarce. Get a loan using gold as collateral and live in style. The above facts are all you need to get a loan using gold with confidence.
