Gold, one of the world’s most coveted precious metals, is an excellent hedge against inflation that holds value well over time. It is also a common and efficient way to create instant liquidity. How do you use gold as collateral for a short-term loan, though? At Qollateral, we make the process as straightforward as possible by offering the highest value, same-day loans in exchange for gold bullion, coins, and even jewelry as security.
Book an appointment today to learn how to get started, or read on to learn more about our convenient and 100% confidential gold-backed loans.
What Is Gold as Collateral?
This type of loan is essentially a way to borrow against gold. In other words, the owner of the gold asset places it in the care of a lender as security in exchange for a short-term loan. Once the loan term ends, the gold asset is returned to the owner. Customers who choose this option will retain ownership of their gold while it is stored in the lender’s vault.
Over the past decade, bullion and coins alone made up nearly a quarter of the world’s gold demand. The precious metal is quickly becoming one of the most convenient and secure ways to obtain a collateral loan because it is such a common asset and is consequently easy to convert into cash.
Type of gold assets we accept include:
Gold bullion
Gold coins
Gold jewelry
And much more
Pros of Loaning Against Gold:
Gold Is a Reliable Asset
Short-term gold valuations can fluctuate significantly. However, the precious metal is widely celebrated for its long-term returns because it is scarce and its demand remains stable, unlike other consumer products like oil. Overall, gold is considered a good investment, which is good news for customers interested in using gold as collateral for loans.
Lower Interest Rates and Better Loan Terms
There is significantly less risk to the lender when you secure a loan using valuable assets like gold because the loan amount is determined primarily by the value of the gold asset instead of the borrower’s credit or financial history. As a result, the lender can offer more attractive loan terms and rates than traditional bank loans. Furthermore, Qollateral customers nationwide can take advantage of New York’s max cap of no more than 4%, one of the lowest rates in the country.
Perfect For Borrowers with a Limited Credit History
Borrowers with limited or poor credit history, who might otherwise have difficulty getting an unsecured loan, can use their gold assets as an alternative option for fast cash. If necessary, the process can be completed the same day and does not affect the borrower’s credit score.
Cons of Using Gold as Security for a Short-Term Loan:
The Affect of Market Volatility on the Value of Gold
While it’s true that gold historically holds its value well in the long term, it can fluctuate significantly in the short term, depending on various market conditions. This factor can put the lender at risk should they need to sell the asset while rates are low in the rare event that the borrower defaults on their loan. This factor could potentially limit the percentage the lender is willing to offer on the total value of the gold itself. As a result, you may need to borrow against more gold assets to secure the desired loan amount – an important factor we encourage all our customers to consider.
Losing Ownership of Gold Assets
In the rare occasion that you should default on your loan, the lender can then take ownership of the gold assets used as security to settle the loan balance. Reputable lenders, such as Qollateral, are willing to work with customers on a case-by-case basis to prevent this situation. Still, it is a risk to consider before committing to a collateral loan. If you’re unsure of your ability to repay the loan amount, another excellent way to obtain cash for gold is to sell your gold assets to Qollateral directly.
Click here to sell your gold.
How to Loan Against Gold at Qollateral
Gold as collateral for loans is an excellent way to create instant cash flow without affecting your credit score or enduring a lengthy application process. It starts by booking an appointment for a private consultation with our knowledgeable and friendly team of appraisers, who will then determine a fair and competitive loan amount based on secondary market trends. Gold assets are stored in state-of-the-art vaults within the International Gem Tower in New York and will be returned to the customer at the end of the loan term. Each customer will be treated with the utmost respect and discretion throughout the entire process.
Are you ready to monetize your valuable gold assets? Click here to get a gold loan.
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