Is it a good Advice to take a Gold Loan or Sell Gold once you Need Instant Cash?
There is absolutely no argument that Indians have one amongst the biggest gold stocks within the entire world. Can you actually believe that Indian women have almost 11% of the whole world’s gold stock in the type of prized heirlooms and jewellery?
This is often because gold in India is synonymous with all different auspicious things. Be it marriage, anniversary, birth, or even festivals like Dhanterus and Akshay Tritya, gold actually marks every special day.
In India, gold has several feelings, emotions, and legacy attached to it, and isn’t just a commodity. Since ancient times, it’s traditional to shop for gold and has been a reality even now. The best part about it’s that the new generation has completely adapted itself to this special tradition and wholeheartedly loves to buy gold.
In addition, during the cash crunch, gold is actually a really safe bet. In emergency situations, it’s one among the best investments that pulls you out of these dire situations. So, is it actually the correct idea to when in need? Most of the times, majority of Indians are perplexed by the question. There are two ways in which you’ll be able to you utilize the gold you have in stock if any:
You can either get gold loans from banks
Or you can simply sell gold for cash
Regarding the above mentioned options, you will be quite confused about which to decide on. We at SL Gold Buyer, suggest that getting cash for gold by selling it’s the most effective choice.
GOLD LOAN OR SELLING GOLD FOR CASH?
There are lots of reasons why selling gold may be a far better choice instead of choosing a gold loan. According to the standards set by the RBI (Reserve Bank of India), the most value of a gold loan is about 75% of the value of your gold. However, you won’t even get this much value from majority of the banks. They simply give about 60 to 65% of the entire value of your gold. Which is pretty less and a net loss for somebody who wants to sell their gold for cash.
Moreover, if you’re taking a gold loan against the gold you own, you truly have to pay the principal amount of your loan plus the interest once you want your gold back. The interest rates on gold vary between 13 to 16% annually, completely depending on the banks. Therefore, you not only get much lesser value of your gold, but you also end up paying the banks much more. This could actually be quite frustrating.
On the contrary, if you sell your gold, you get the very best 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’s no reduction of making charges and so, you get maximum returns. Also, as is the case with loans, you’ve got no hassle of paying the loan back.
IMPORTANT TIPS WHILE SELLING YOUR GOLD
It is better to understand and keep the following points in mind while selling gold so that you do not suffer any disappointment later.
Gold purity- Always check the purity of your gold before you choose to sell it so that you have an approximate idea of the expected price. It’s best to own a hallmark sign on your gold. If you do not have a hallmark sign, then you need to get the gold checked for purity before selling it and obtain its purity report. This’ll also provide you with confidence.
Bill- together with the gold purity certificate it’s highly recommended to possess the original bill or invoice. This will further avoid any conflict of interest and help get you a good amount against your gold.
Price- The gold prices are very fluctuating and change almost on a daily basis. One of the best option is to sell your gold on the day when the gold prices are high. Furthermore, this will actually assist you get the best money.
CONCLUSION
In conclusion, selling your gold is often a more robust option than going for a gold loan. It’s actually completely pointless to lament over your prized gold assets that you just sell to tread through a financial crunch. Once your emergency is over, you’ll easily afford to buy gold again.
For more information contact us or visit one of our outlets, the location of the same is provided on our website.