It’s not always easy to obtain a loan, especially for larger amounts of money. In some instances, it’s possible to secure a loan if you have sufficient collateral. If you’re hesitant to put your home or vehicle up to secure a loan, you may be able to use bullion as collateral to obtain a loan. The experts from First National Bullion, the silver and gold dealers Carlsbad collectors trust for high-quality service and industry knowledge, explain what you need to know about bullion loans.

How a Bullion Loan Works

With a bullion loan, you’re simply using your physical forms of gold, silver, or other precious metals to secure a loan. Typically, you’ll have a certain amount of time to repay the loan—usually 90 days, although it may be longer for larger loan amounts. If you’re unable to repay the loan within the specified period of time, the bullion you put up as collateral will be used for payment.

This is beneficial because it eliminates the need to worry about collections and similar processes that can take place if you fail to repay the loan. Of course, if you’re able to repay the loan, you’ll get the cash you need and still be able to keep your bullion.

Preparing for a Bullion Loan

Start by determining the value of any bullion you may have available. This can be done by getting a professional appraisal if you don’t already have documentation. With a bullion loan, it doesn’t matter what kind of bullion you use for collateral. As long as the bullion, whether it’s gold bars, silver jewelry, or platinum coins, has some discernable and verifiable value, you should be fine.

Making Sure Bullion Is Accepted for a Loan

Not all lenders accept bullion as collateral. For instance, you probably wouldn’t be able to go to your local car dealership and offer some gold bars for a snazzy new ride. A good place to start your search is online. Look for lenders who accept bullion. Go a bit further as you search for a lender and pay attention to:

• Loan terms and conditions
• How much interest is charged for your loan
• Any fine print that applies to your loan
• The kind of documentation you’ll need
• How long you’ll have to repay the loan

Reasons to Get a Bullion Loan

You’re not likely to get a bullion loan to buy a car or home. Many people obtain loans of this nature because of a need for fast cash. Some people do this to pay off certain bills or take care of other debt obligations. If you own enough bullion, you may be able to get sufficient cash to buy a car or make home improvements. 

It’s also generally easier to obtain a bullion loan, since you’re using physical precious metals for collateral. This can be helpful if you have poor credit or you’re unable to qualify for other types of loans. You can also get a bullion loan if you have no significant credit history that establishes your ability to repay a loan.

For information on any aspect of buying, selling, and owning precious metals, call on the experts at First National Bullion and Coin. When they’re looking for accurate information about the markets for precious metals such as gold and silver bullion, Carlsbad collectors trust our reputable dealers. We’re a boutique precious metals firm with experienced professionals, and we work hard to keep our investors informed with the most up-to-date market news. If you’re looking to add precious metals to your portfolio, call us today at (760) 253-8072.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.