Three Reasons to Take Out a Gold Loan

Three Reasons to Take Out a Gold Loan

The value of gold is stable. There is only a certain, finite amount of it on earth that makes it precious. It has many uses and is accepted as currency all over the world, so that makes it one if not the best investment. These reasons are what makes it perfect for an asset based or secure loan.

Gold bullion coins and bars are a good long-term investment. You can borrow cash against your gold bullion instead of selling. Here are three reasons why you should take out a gold loan:

#1. Low Interest Rates

Gold loans have a low Interest rate and there are always in demand which makes them a secure investment vehicle.

You can unlock the liquidity of your gold investment to take are of those emergency money situations or to take advantage of a business opportunity requiring cash or just to pay for that weekend away. Whatever your cash needs is, having gold bullion makes it easy for you to meet them.  The interest rates are low and you can pay the loan and still use the same bullion to take more loans.

#2. There Is Always A Demand For Gold

Gold is a precious metal with many uses, so it’s demand is always high. If you consider that then you will see that there is never a reason why you should sell your gold at low market value. Gold loans are almost always availed at close to the market value of gold as possible. You can get a gold loan for almost the same value you bought it for and because, you aren’t selling, your gold investment continues to earn a return even whilst it is not physically in your possession. When you take out a gold loan Melbourne, you are choosing to retain your gold bullion instead of selling it for cash and that is a smart move for long term bullion investors.

#3. Security

Besides inherent worth and high demand, gold is used as a hedge against inflation. It keeps its value and even increases its value when all other investment classes are having a hard time. This makes good a good generational investment, something you can pass on to your children and their children’s children.

Most people have their money tied up in intangible assets like stocks and retirement funds. When the economy is weak, these lose their value but gold goes the opposite direction – its value actually goes up. Gold has and will always be valuable and necessary. Gold works as currency all over the world.

How Much Can You Expect to Get for Your Gold?

The amount of money you can borrow against your gold depends on the price of gold. Right now gold has been bullish. It rose sharply in 2020 due to the Corona virus outbreak, the lockdown and the subsequent stimulus packages. Bullion has a high value. You can get more than $50,000 if you have a little over 30 ounces of gold bullion if the spot p[rice of gold is around $1,750.