Pawn Loan on Gold vs. Selling Gold
Gold is a precious commodity to own because you can sell it. But you should first consider using your gold as collateral in a pawn loan. When you take out a loan on gold rather than selling it, you get to hang on to your asset. This is important because gold is an asset that is almost definitely going to increase in value down the road. It is a somewhat volatile commodity in that it will rapidly rise and fall. However, as an investment over the long term gold will always retain value.
The price of gold skyrocketed, then fell, and now seems to be leveling off. However, the average price of gold in recent years is historically high making it especially valuable as collateral. While the market price of gold will not be the exact amount of your pawn loan, pawnbrokers do keep track of this figure and whether or not it is rising or falling to determine what they will lend on gold.
Find out what it’s really worth.
It is also important to remember when taking out a loan on gold, that pawnbrokers are often as interested in the design of your piece as they are the specific weight of your gold. Popular designers and vintage pieces can hold a lot more value than just the gold they carry. If you want to take out a loan on gold you need to do your homework before you ever set foot in the pawn shop. Knowing not just the gold price, but the going rate for gold buyers will make you a much more effective negotiator. Furthermore, you should know the weight of your specific piece and what it’s valued at.
Bring all the odds and ends.
Finally, if you own designer gold or you think your gold may be worth something more than just gold, be prepared to show this to the pawnbroker. If you have any receipts, original boxes or authenticating documents bring those with you. Gold is an asset you want to hang on to. Pawnbrokers will always loan on the precious metal even when the price is low because there is always a market for gold and gold jewelry. If you own gold and you need cash, a pawn loan may be the answer you are looking for.