Gold As Collateral - 3 Tips To Guide You

By Author: Garrett Tarbell
Total Articles: 21
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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 history of humanity. It’s a normal occurrence especially with such volatile economy we have in the United States.

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 defined by Wikipedia, is a secured loan wherein the borrower pledges an asset such as a car, property, jewelry etc.

One of the things you can use as collateral is Gold. Choose a lending company that will provide you with a maximum loan equivalent or close to the value of the gold you’re using as collateral. In fact it’s not just gold, you can also get a loan with your silver or platinum. However, gold transactions have been rising and add up to over $100 billion dollar each day, more than the government bonds of some European countries. When a huge company announced they would start accepting gold as collateral from their counterparts, a number of other companies followed suit.

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

Ask for Gold testing - when you have your gold appraised, ask for a gold testing. It’s imperative to have one because to the untrained eye, it’s very difficult to check if a piece of jewelry or any other gold items or pieces you may have are real gold or just a cheap kind of metal layered with gold or even fake gold. You know how it is; it’s very easy to make cheap plated or rolled gold. If you have gold testing done, you are assured as well as the lending company, that the gold is true and real and you get maximum value for it when appraised.

Ask for a standard gold acid test - you need this to know the karats of your gold. Some gold items, because gold in nature is a soft metal, have added metals to it to make it strong. The purity of your gold is measured in karats. The gold acid test will help you get a better appraisal for your item.

What is gold plating and will it affect 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 does not hold any real gold value, because although it is gold plated, it is too minuscule to make any significance.

So are you convinced to part ways with your gold? Worry not for this is only temporary. Once your gold has undergone the tests above, you are assured that your item will be appraised for its true and real value, and you have an improved chance of getting a better, higher loan. You walk away with the best value for your money from your gold loan - so you can start living your life, pay whatever is necessary, and sleep through the night with peace of mind.

Biltmore Loan and Jewelry provides loans from $100 to over a million if you Sell Jewelry as Collateral. 100% Professional. Sell diamond today, call for a free appraisal!