Gold As Collateral – 3 Tips To Assist You

July 4, 2012 by  Filed under: Loans 

Running into problems with money? Don’t be ashamed, you’re not the only one who’s ever had a difficult time with cash flow in the track record of humanity. It’s a typical incident particularly with this type of unpredictable economy we have in America.

Now one option you have if you’re in dire needs is to take out a loan. A collateral loan in particular. A collateral loan as described by Wikipedia, is a secured loan wherein the borrower promises an asset for example a car, property, jewelry etc.

One important thing you may use as collateral is Gold. Select a lending company that will provide you with an optimum loan equivalent or close to the value of the gold you’re using as collateral. In fact it’s not just gold, you can even get a loan using your silver or platinum. Having said that, gold transactions have been rising and add up to over $100 billion dollar each day, greater than the government bonds of some countries in Europe. When a huge company declared they would begin taking gold as collateral from their counterparts, a number of other companies followed suit.

Here are tips to guide you when working with your gold as collateral.

Ask for Gold testing – when you have your gold evaluated, ask for a gold testing. It’s important to have one since to the inexperienced eye, it’s very difficult to verify that a piece of jewelry or any other gold items or pieces you might have are real gold or just a cheap kind of metal layered with gold or perhaps fake gold. You know precisely how it is; it’s very easy to produce cheap plated or rolled gold. If you have gold testing completed, you’re assured as well as the lending company, that the gold is true and real and you also get optimum price for it when evaluated.

Ask for a standard gold acid test – you will need this to be aware of the karats of your gold. Some gold items, mainly because gold in nature is a soft metal, have added metals to it to ensure it is solid. The purity of your gold is scored in karats. The gold acid test can help you get a better assessment for your item.

What is gold plating and will it have an effect on my gold loan? – A method in which another base metal serves as the shape of the ring, like copper or silver, gold plating is not considered gold and doesn’t hold any real gold value, because even though it is gold plated, it’s too tiny to make any relevance.

So are you confident to part ways with your gold? Worry not for this is merely temporary. The moment your gold has undergone the tests above, you are assured that your item will be appraised for its genuine and real value, and you have an increased chance of getting a better, bigger loan. You leave with the best value for the money from your gold loan – so you can start living your life, pay whatever is needed, and sleep in the evening with peace of mind.

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