How to Take Out a Loan Using Gold as Collateral

Loans on JewelryAre you the owner of precious gold bullion coins or bars, gold jewelry or gold watches and want to take a loan out against a particular item or multiple items? As you are probably already aware, gold prices are soaring now at above $1700 making it the perfect time to sell gold or apply for a gold loan.

The process for taking out a gold loan is quite simple. All you have to do is:

  1. Choose which item(s) you want to sell. When choosing to use gold bullion, a gold watch, or gold jewelry, you must know that if you fail to pay the loan back, the item will be held as collateral. If you are unsure as to your future financial position, you should know that you may lose the item if you default on the loan.
  2. Agree to appraisal. The gold broker will look carefully at your gold item and decide how much it is worth. This is why it is important that you educate yourself on the piece prior to meeting with a broker. Don’t be afraid to walk away if you are offered a bad deal.
  3. 3.     Decide on loan amount. You will be supplied with an appraisal on the item and asked how much you want to borrow against its worth. For instance, if you decide to use a Rolex and are offered up to $5000, you can choose to borrow all or a portion of the amount appraised.
  4. 4.     Agree on loan terms. The cash for gold lender will provide you terms and conditions including fees, interest rates, payment specifics, and more. It is important that you read them carefully and ask questions.
  5. 5.     Make monthly payments. You will be required to make monthly payments on time or risk additional fees and increased interest rates. The sooner you pay off the loan, the better!

To find a cash for gold Huntington Beach dealer that will provide you the best deal and exceptional service, search the Web and make sure to read customer reviews if possible. Additionally, it is definitely recommended that you find a state licensed gold broker before selling gold.

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