Pledging one’s jewelry has become a common practice today. This is because precious metals are famous all around the world for their immense value. And people leverage their values in different ways. You can either pledge your ornaments for a loan or Sell Your Pledged Gold. The first option seems very popular these days. Because here, people do not have to completely let go of their articles by selling them. They can pledge their accessories for a limited period of time. And in exchange, they can get some money for themselves. After they repay their amount, they can get their jewelry back. On the other hand, if you Sell Your Pledged Gold, that can also generate some considerable money for you.
But what is a better way to get some money on your ornaments? Because precious metal ornaments are known for maintaining their high value in the market. And based on different financial situations, people leverage them in different ways. Both have their pros and cons. Whether you take a loan on your ornaments or Sell Your Pledged Gold, you will have to face certain consequences. But financial experts recommend that the latter option is significantly better. It has little to no cons in it. And it has a better probability of giving you the full worth of your accessories. Read ahead to find out how you can profitably do so.
The Problems with Gold Loan
Today, taking such loans has become popular. This is also referred to as pledging the ornaments as collateral. You can approach the lenders easily and pledge your items to them. Usually, such venues include private and government banks, and non-banking financial companies (NBFCs).
They check the worth of your jewelry and give you some immediate cash. People consider taking a Gold Loan a good way to generate instant money for themselves. And they can then use the funds for different financial purposes.
But there are some things that people overlook in such processes. The principal amount has to be paid in monthly installments. And every installment comes with high-interest rates. Furthermore, the lenders never give you the right value for your accessories.
You will hardly get close to 60-70% of the worth of your ornaments. Hence, not only do you get less money than you thought, but you also pay a lot more in return. This is because of the high-interest rates in these firms. In addition to that, there are also numerous hidden charges and transaction fees in such a Loan On Gold.
Sometimes, the sum total of all the installments, interests, and extra charges is more than the price of your jewelry! This is why many people end up incurring huge losses in such processes. And this is the reason why financial experts do not advise people to go for such loans. No matter how dire the circumstances may be, pledging your articles will always be a loss for you.
The Other Consequence
As you might already know, the pandemic caused numerous monetary issues for the people. Hence, they suffered through unimaginable financial issues. Their expenses were rising. And their sources of income have become non-continuous and unreliable. This is why the practice of taking a Loan Against Gold rose exponentially.
When people lost their jobs, they were looking for reliable assets that which they could generate money. This precious yellow metal helped them in many ways. It has a very high market value and demand, causing its price to be high.
But the catch is, that such financial problems have not gone completely. They still persist. And in such situations, it is hard for people to be punctual and regular in paying their monthly installments.
This worsens the problem. Because if you pledge your ornaments and don’t pay the interests and installments on time, your articles are in danger. Why? Because the lenders have the right to permanently seize your ornaments!
When this happens, all the Cash For Gold you paid becomes a loss. All those earlier installments and interest rates are gone. You basically paid extra for a piece of jewelry that’s not even yours anymore. It is similar to selling your ornaments for a loss. You won’t be able to reuse and repurpose them for other financial investment reasons.
These are the reasons why everyone advises people to not pledge their ornaments. And even if they do, it is best to sell them while they have time.
Whom to Sell Your Pledged Gold?
If you also have such loans on your head, then it is best to sell your pledged jewelry soon. You must approach professional and experienced firms such as Cashfor Gold and Silverkings Pvt Ltd. They have been working here for over two decades as professional Gold Buyer.
All you have to do is give them a call and explain your situation to them. They will then arrange the funds for you and pay all of them to the lenders. This way they will release your pledged accessories from them. And they will prevent them from being seized.
And since they are reputed buyers, you can sell those ornaments to them. They use the latest industry-grade testers to evaluate your articles proficiently. They check the quality, purity, weight, type, karat value, and composition of your accessories. It is then that they determine their true market value and the right price to pay you on them.
And when the deal is done, they give you the highest returns through cash immediately in your hands. This is the reason these Jewelry Buyers are the most reputed and reliable in the industry. You might also not feel the need to sell your articles. But then you would still have to pay the money they paid to the lenders to release your jewelry. Don’t worry about that either!
You won’t have to worry about paying high-interest rates or processing fees. You can pay them the money in convenient installments monthly without high extra expenses. What are you waiting for? Contact them and release your pledged ornaments now!