Are you currently running into problems with money? Do not be ashamed, you are not the only one who has ever had a hard 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 Australia. Apart from government funded industries such as Education and Construction, the Australian economy is in shambles.
Now one option you have if you own gold jewellery and don’t want to sell it is to take out a gold loan. One crucial thing that you have use the gold jewellery as collateral. Stay away from traditional pawn shops and choose a lending gold dealer like that of a pawn shop Melbourne.
A gold dealer will provide you with a low interest rate gold loan against the value of your gold items, this is because they specialise in gold. Getting a gold loan from a gold dealer means you save on interest. A traditional pawn shop Melbourne usually between 10% – 20% a month, where as a gold dealer can be as low as 2% a month!
Many different kinds of people take out gold loans for different reasons. Both upper and middle income borrowers are taking their gold valuables to pawn shops or gold dealers to generate the cash needed for vehicle insurance, mortgage payments, school tuition and even essentials like clothing and food.
However, before you get a loan for gold, there are some very important things that you need to keep in mind. Here are guidelines that can guide you when working to get a loan with your gold as collateral.
Your gold will be tested and evaluated based on its ‘melt’ value, not its insurance appraisal value. When having your gold evaluated, you can ask the dealer what purity or carat it is and how much they lend against that carat per gram. The gold dealer will test using non destructive methods such as XRF. Once the dealer has XRF’d all your gold jewellery it will be sorted into carats, weighed and an offer should be made.
Sometimes the gold dealer may need to do an acid test on your gold jewellery. This is to test for gold plating.What is gold plating and can it have an effect on my gold loan? – It’s a method in which low quality jewellery stores sell jewellery to ‘rip off’ people who aren’t educated in gold jewellery. As this jewellery will predominantly be silver or copper, gold plating is not considered as gold and does not hold any true gold value. Even though it may be gold plated, it’s too tiny to make any significance.
After the offer is made you will be required to show ID and sign the paper work.
A gold loan is typically a 30 day term that can be rolled over by paying the monthly interest amount. If you don’t need the money you simply repay the loan and take back your gold items held as collateral. Just make sure you don’t forget to pay your monthly interest or your gold items will be forfeited.