Gold prices are on a upswing, and a lot of people have been using their gold to get loans. I had written a post on this a long time back.
Just recently while reading the latest edition of outlook money ( one of my favorite finance magazine) I read about how the loans are given. Here are some salient points.
1. the gold value is fixed as the lowest value for the last 30 days ( fixed monthly). The reason for this is the fact that there is huge volatility in the market.
As an example gold had hit 1911$ per ounce a couple of days back and then fell to lows of 1700$ per ounce in a day. To avoid this volatility, the gold would have been valued at 1700$ per ounce.
2. 75% of the value is given as loan. Again to help against variability of prices
3. The value of gold jewelry is taken post reduction of making charges. These are in the range of 10 to 15 %
While I will continue to give tidbits of what info I get , it is always great to read some good finance magazine.
If not you can always trust this blog to get some great information.
some old posts
http://simplefinancialsense.blogspot.com/2010/06/using-gold-to-get-loan.html
http://simplefinancialsense.blogspot.com/2010/02/gold-prices.html
http://simplefinancialsense.blogspot.com/2010/07/titans-gold-harvest-scheme.html
http://simplefinancialsense.blogspot.com/2009/09/give-your-savings-gold-hedge.html
(Dont forget to subscribe using the links on the right. Become a follower of the blog)
Just recently while reading the latest edition of outlook money ( one of my favorite finance magazine) I read about how the loans are given. Here are some salient points.
1. the gold value is fixed as the lowest value for the last 30 days ( fixed monthly). The reason for this is the fact that there is huge volatility in the market.
As an example gold had hit 1911$ per ounce a couple of days back and then fell to lows of 1700$ per ounce in a day. To avoid this volatility, the gold would have been valued at 1700$ per ounce.
2. 75% of the value is given as loan. Again to help against variability of prices
3. The value of gold jewelry is taken post reduction of making charges. These are in the range of 10 to 15 %
While I will continue to give tidbits of what info I get , it is always great to read some good finance magazine.
If not you can always trust this blog to get some great information.
some old posts
http://simplefinancialsense.blogspot.com/2010/06/using-gold-to-get-loan.html
http://simplefinancialsense.blogspot.com/2010/02/gold-prices.html
http://simplefinancialsense.blogspot.com/2010/07/titans-gold-harvest-scheme.html
http://simplefinancialsense.blogspot.com/2009/09/give-your-savings-gold-hedge.html
(Dont forget to subscribe using the links on the right. Become a follower of the blog)
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Gold loan seekers can also utilize gold credit in Indian at the preferred rate as well. Under this supply, you may utilize the benefit of pay your amount borrowed at preferred monthly or annually basis as well. Thus, the gold mortgage customers may have conditions to pay the mortgage attention as per their convenience and worth.
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