Scenario · Covering a Slow Quarter
Selling Metal to Get Through a Slow Quarter
Revenue dipped, the fixed costs did not, and the most liquid thing on the balance sheet is a box of metal that has been sitting there for years doing nothing. Selling it is the obvious move, and it is the one most owners make.
No credit check and no obligation. If borrowing is the wrong answer for your situation, you will be told that first.
The whole argument, in one line
Selling is permanent and can be taxable.
A loan is neither.
65%
Advance against value
$15k
Minimum loan
Same
Bars returned
Live market
Business-purpose loans only. Not available in Nevada, Vermont, North Dakota and South Dakota.
65%
Advance against market value
$15k
Minimum loan — about $23,000 in metal
Days
From verified collateral to funded
Same
Metal returned on repayment. Not equivalent — the same bars
The moment
How the decision usually gets made
The decision usually gets made in about ten minutes, in the same week the numbers come in. That is the problem — it is a permanent decision taken under short-term pressure, and it is almost never revisited afterwards to see whether it was right.
The math
The arithmetic worth doing first
Work out what the metal would fetch today, then what it would cost to rebuild the same position in eighteen months. Add any capital gains liability the sale creates. If the answer to "would I buy this metal back" is yes, you did not want to sell it — you wanted the cash, and those are different problems with different instruments.
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 our 65% 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.
Honestly
Which way to go
Both columns are real. If more of the right-hand list applies to you, sell — and we would rather you did.
Borrowing probably fits when
- The gap is a timing problem, not a solvency problem.
- You can service interest-only payments out of ordinary trading.
- You would buy the same metal back if you had the cash.
- The holding is above the $23,000 collateral minimum.
Selling is the better answer when
- The business is not going to recover the ground, and you are delaying a decision rather than bridging one.
- You have wanted out of the position anyway and this is the excuse.
- The holding is below the minimum, which makes a loan the wrong instrument.
- You cannot comfortably cover the monthly interest.
Break it down
What selling actually costs
The Spread
Charged once when you sell and again if you buy back in. Changing your mind has its own price.
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The Tax Event
A sale can be a taxable disposal. A loan generally is not. The difference is structural, not clever.
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Losing the Position
The reasoning that made you buy metal does not usually change because an unrelated invoice landed this month.
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Replacement Cost
People price the buy-back at the price they sold for. It is almost never still that price.
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Selling on Someone Else's Schedule
When a supplier or a tax deadline picks the date, the price is whatever the market happened to be doing.
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What Borrowing Costs
The case against borrowing: a monthly obligation, a margin call mechanism, and an asset you could simply have sold.
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FAQ
Common questions
- What if the slow quarter becomes a slow year?
- Then borrowing against your reserves made it worse, and we would rather you sold. A loan bridges a gap; it does not fix a business that is shrinking.
- Is there a prepayment penalty if things pick up?
- No. No origination fees and no prepayment penalties. Repay early and you stop paying interest.
- How fast can it fund?
- Days once collateral is verified. It is not same-day, and anyone promising same-day on a secured loan is not verifying anything.
- Do you check credit?
- No. The loan is secured by the metal, so the metal is what gets inspected.
Other scenarios
Liquidating Dealer Inventory
Selling stock into a soft bid because the calendar said so, not because the bid was ever fair.
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Selling at a Market Low
Borrowing to avoid a sale at a low is a financing decision if you can service it, and a bet if you cannot.
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After a Bank Said No
A decline is usually a statement about documentation and trading history, not about whether you own the metal.
Explore →
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.