Detail
The Real Risk, Explained Before You Sign
This is the genuine downside of borrowing rather than selling, and it deserves a page of its own rather than a line in the small print.
No credit check and no obligation. If borrowing is the wrong answer for your situation, you will be told that first.
What a margin call is
The loan is advanced against a percentage of your metal's market value. If metal prices fall materially, that percentage rises — the debt has not changed but the collateral behind it is worth less.
At that point we may contact you to bring the loan-to-value back into range, either by adding collateral or by paying down part of the balance. That contact is the margin call.
Why the advance rate is only 65%
The gap between the advance and the value is what absorbs an ordinary price move. A lender advancing ninety percent against a volatile asset is not being generous; it is creating a risk that ends up being yours, because the call comes far sooner.
A conservative advance rate means smaller loans and fewer margin calls. That is a deliberate trade and we would rather explain it than bury it.
How to make it unlikely to matter
Borrow less than the maximum. The single most effective thing you can do is take a loan comfortably below the ceiling, which puts real distance between you and any call.
Keep unpledged metal in reserve, so that adding collateral is straightforward if it is ever asked for. And do not take a loan whose repayment depends on the metal price rising — that is the situation where a fall hits you twice.
If you cannot meet a call
Talk to us early. Every version of this goes better with notice, and the worst outcomes are the ones where nobody called until it was too late to do anything useful.
If the loan cannot be brought back into range, the collateral covers the debt. That is what secured means, and it is the honest bottom line of the product. Anyone who will not state it plainly is not being straight with you.
And the alternative
Selling has none of this. No margin call, no monthly obligation, no exposure to a price fall. It is simpler and it is final, and for some people that simplicity is worth more than keeping the position.
If reading this page has made you uneasy, that is useful information rather than a problem. Take it seriously.
Run the numbers
Instant estimate
What could you borrow?
Enter the ounces you hold. We advance up to 65% of market value.
| Metal | Spot / oz | Your oz | Value |
|---|---|---|---|
| Gold | $4,600.00 | $0.00 | |
| Silver | $69.00 | $0.00 | |
| Platinum | $1,840.00 | $0.00 | |
| Palladium | $1,329.00 | $0.00 |
Estimate only. Final advance rate and terms are confirmed after your collateral is inspected and verified. Spot prices are indicative and move continuously. Minimum loan is $15,000 (about $23,077 in collateral value at our65% rate).
These are business-purpose loans and are not offered for personal, family or household use. Not available in Nevada, Vermont, North Dakota and South Dakota. If metal prices fall materially we may contact you about adding collateral or paying down the balance to keep the loan-to-value in range.
FAQ
Common questions
- How far do prices have to fall?
- It depends on how much you borrowed against the value. Borrow well under the ceiling and there is substantially more room. Specifics are in your agreement — read them.
- How much notice do I get?
- You are contacted directly. Ask about notice periods before signing and get the answer in writing.
- Can I add collateral instead of paying down?
- Yes. Either brings the loan-to-value back into range and borrowers use both.
- Does the metal get sold immediately?
- No. A margin call is a request to restore the ratio, not a liquidation. Talk to us.
- Is this the same as a pawn forfeiture?
- No. This is a loan against collateral with a defined mechanism, not a pledge with a short forfeit date. Different product, different structure.
Next step
Run it both ways before you decide.
No credit check and no obligation. Tell us what you hold and what the money is for, and if selling is the better answer for your situation you will be told that first.
Business purpose only. Not available in Nevada, Vermont, North Dakota and South Dakota.