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Is it Advisable to Take a Gold Loan or Sell Gold When in Need of Instant Money?

There is no argument that Indians have one of the largest gold stocks in the world. Can you beat it that Indian women have almost 11% of the world’s gold stock in the form of jewellery and prized heirlooms?

This is because gold in India is synonymous with all things auspicious. Be it an anniversary, birth, or marriage, or festivals such as Dhanterus and Akshay Tritya, gold marks every special occasion.

In India, gold is just not a commodity but has feelings, emotions, and a legacy attached to it. It is traditional to buy gold and this has been a reality since ancient times. The best part is the new generation has also adapted itself well to this tradition and loves to buy gold wholeheartedly.

Sell-Gold-for-Instant-Money

Additionally, gold is a safe bet during the cash crunch. It is one of the best investments that pulls you out of emergency situations. So, is it the right idea to sell gold when in need? This question perplexes most Indians most of the time.

If you have gold in stock you can use it in two ways; either get gold loans from banks or sell gold for cash. You may be confused about whether to take a gold loan or consider selling gold. We suggest that getting cash for gold by selling it is the best option.

Gold Loan or Selling Gold for Cash?

There are many reasons why selling gold is a much better option than going for a gold loan. According to the standards set by the Reserve Bank of India, the maximum value of a gold loan is 75% of the value of your gold. But, most of the banks don’t even give this much value. They just give 60 to 65% of the total value of your gold. This is pretty less and a net loss for someone who wants to sell gold for cash.

Additionally, if you take a gold loan against your gold, you need to pay the principal amount of your loan plus the interest when you want your gold back. Depending upon the bank, the interest rates on gold vary between 13 to 16% annually. Therefore, you not only get less value of your gold but also end up paying the banks more. This can be quite frustrating.

On the contrary, if you sell your gold, you get the highest value against your assets where only making charges are deducted against your gold jewelry. However, if you sell gold coins, gold bonds, or gold ETFs, there is no reduction of making charges and therefore, you get maximum returns.

Also, as is the case with loans, you have no hassle of paying the loan back.

Important Tips While Selling Your Gold

It is better to keep the following points in mind while selling gold so that you don’t suffer any disappointment later.

  • Gold purity- Always check the purity of your gold before you decide to sell it so that you have an approximate idea of the expected price. It is best to have a hallmark sign on your gold. If you don’t have a hallmark sign, then you must get the gold checked for purity before selling it and get its purity report. This will also give you confidence.

 

  • Bill- Along with the gold purity certificate it is highly recommended to have the original bill or invoice. This will avoid any conflict of interest and help get you a fair amount against your gold.

 

  • Price- The gold prices are very fluctuating and change almost every day. The best option is to sell your gold on the day when the gold prices are high. This will help you get the best money.

 To Conclude

Therefore, selling your gold is always a better option than going for a gold loan. It is pointless to lament over your prized gold assets that you sell to tread through a financial crunch. Once your emergency is over, you can easily afford to buy gold again.

But you may be confused about the best place to sell gold?

Do not worry, just go online and type on any search engine- a place to sell gold, gold buyers near me, instant payment against gold, or cash for gold locations near me.

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