The Questions People Actually Ask

FAQ

Borrowing against precious metals

What is the single most useful question here?

Would you buy this metal back at today's price? If no, sell it. If yes, you want cash rather than a sale, and those are different problems.

How much can I borrow?

Up to 65% of market value, minimum $15,000 — roughly $23,000 of metal.

Can I borrow for a personal reason?

No. Business purpose only. That is a licensing matter and it does not bend for a sympathetic situation. There is a page here on what to do instead.

Which states are excluded?

Nevada, Vermont, North Dakota and South Dakota. That is absolute.

Do you check credit?

No. The loan is secured by the metal, so the metal is what gets inspected.

What is the interest rate?

Single digit, interest-only monthly, with no origination fees and no prepayment penalty. Specifics are confirmed against your situation and given in writing before you sign.

How fast does it fund?

Days once verified collateral is in hand, not hours. Shipping is usually the longest leg. If you need money in 48 hours, sell it instead.

Do I get the same metal back?

Yes — the same bars and coins, not an equivalent quantity. Ask any lender in this space that question; the answers differ.

Where is my metal held?

A fully insured US vault. Our sister company Florida Intervault operates a 9R-rated facility in Fort Lauderdale.

Is my metal lent out or leased?

No. It is held as collateral and stays where it is until you repay.

What triggers a margin call?

A material fall in metal prices pushing the loan-to-value out of range. You add collateral or pay down the balance. Borrowing well under the ceiling makes this far less likely.

What if I default?

The collateral covers the loan. That is what secured means, and anyone who will not say it plainly is not being straight with you.

Is borrowing against gold a taxable event?

A loan is generally not a disposal, so it does not by itself create a gain. Your circumstances decide the outcome. Ask your accountant — we are not qualified and we will not pretend to be.

Is this a pawn loan?

No. Different structure, much higher advance rate, much lower interest, and no short forfeit date.

Can I repay early?

Yes, with no prepayment penalty. Repaying early simply stops the interest.

Can I pledge part of my holding?

Yes. Only the pledged metal comes to the vault; the rest stays wherever you keep it.

What about numismatic coins?

A secured advance is against metal content, not collector premium. A rare coin is worth more to you than it is to a lender, and you should generally not pledge one.

Will you tell me not to borrow?

Regularly. There is a page on this site listing ten situations where selling is the better answer, and another explaining who we cannot lend to at all.