The following is a guest post
When you need money fast to pay medical bills or just to take a well-deserved vacation, there are a number of methods of getting it. But how do you know which is best and which will leave you in debt for the rest of your life? There is one way to get the money you need now without having to resort to a bank loan. That is to put up your gold and precious metals against a short term loan.
People sometimes construe this process as both difficult and precarious. The side they do not see however, is that taking short term loans against gold and precious metals is actually easier than getting a bank loan, may have a lower interest rate, and probably have fewer risks attached to it. This is because the item serves as collateral. As long as you pay your account regularly, the item remains technically yours. Should you default on payment, the lender will have a right to collect and sell the item you have put up.
The major difference here is that while a bank may take your house and car, or other items necessary for your life and livelihood, jewellery and precious metals may have sentimental value, but are not essential to sustain life. The question that leads from this is obviously, why not sell these items? There is actually a very good reason for this, that is, the selling price may be low. Also, getting a short term loan is temporary; pay off the loan and the item is still yours. When you sell these items though, they are gone from your possession forever.
So what’s better? A loan, a pawn shop, or a broker that can give you short term loans against gold and precious metals that you rarely make use of? That is something that is for you to decide, especially if you have to take stock of what you have on what you need, but the benefits of the latter cannot be disputed. When you need a short term loan, no matter what you are doing with it, and you have the money to pay it back, putting precious metals up against that loan just makes good sense.