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Gold Loans Explained: How to Borrow Against Your Precious Metals
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Gold Loans Explained: How to Borrow Against Your Precious Metals

Gold and silver have always been more than shiny objects. For centuries, they’ve been trusted stores of value — a hedge against inflation, political upheaval, and the declining power of paper currencies. But what if you could use your metals without selling them? That’s the role of a gold loan.
At
Money Metals
⁠
, our Metals Equity Line of Credit (MELOC™) lets you borrow against bullion stored in our secure Depository. It’s a way to access liquidity while keeping your metals intact.

⁠
What is a Gold Loan
⁠
?

A
gold loan
⁠
is a type of secured financing where you pledge bullion as collateral in exchange for cash. The borrowing limit is tied to the market value of your metals - usually up to 75%.
Unlike pawnshops that demand extreme rates or banks that won’t recognize gold at all, Money Metals offers fair, transparent terms. Your metals remain stored, insured, and fully owned by you, while you access the capital you need.
Key Takeaway: Gold loans unlock liquidity without forcing you to sell.

How Gold Loans Work

Transfer metals to Money Metals Depository.
We value them and determine your borrowing limit (up to 75% of spot price).
You receive loan terms and, once approved, funding typically within 48 hours.
Make interest-only payments, with the option to pay down principal anytime.
At term end, repay or renew to keep funding active.
No credit checks, no origination fees, no prepayment penalties.

Benefits of a Gold Loan

Liquidity Without Selling: Keep ownership while unlocking value.
Fair Rates: Competitive with business credit lines, not pawnshop levels.
Flexible Uses: Business expansion, real estate, tax obligations, or new investments.
Transparent Terms: No hidden fees.
Wealth Preservation: Metals stay securely vaulted and insured.
Why investors like it: You retain the inflation hedge of bullion while putting its value to work.

Loan-to-Value (LTV) Ratio

Money Metals lends up to 75% of your bullion’s current market value.
Example: $100,000 in metals → borrow up to $75,000.
If metals fall sharply, you may need to add collateral or reduce the balance (margin call).
Key Takeaway: The LTV strikes a balance between liquidity and security.

Interest Rates & Repayment

Competitive Interest Rates: Far below pawnshops or payday lenders.
Interest-Only Payments: Keep monthly obligations manageable.
Flexibility: Repay principal anytime; renew when the term ends.
Example: A $50,000 loan at 8% → ~$333/month in interest, with the option to pay down principal anytime.

Risks & Considerations

Gold loans are safe but not risk-free.
Market volatility can trigger margin calls.
Proceeds must be used for business or investment purposes (not personal).
Not available in all 50 states.
Collateral remains vaulted until repayment.
Defaulting can result in loss of pledged bullion.
Mitigation: Transparent terms, insured storage, and flexible repayment keep risks manageable.

Eligibility & Requirements

To qualify, borrowers must:
Own at least $20,000 in eligible metals.
Store collateral at Money Metals Depository.
Borrow at least $15,000.
Use funds for business or investment only.
Reside in an eligible state.
Provide government-issued ID and basic financial info.
No credit checks required.

Application Process

Open or confirm a Depository account.
Transfer metals securely.
Submit application with ID and basic details.
Receive valuation and loan offer.
Approval and funding, usually within 48 hours.
Most clients move from application to funding in under a week.

Alternatives to Gold Loans

If you need liquidity, here are your other main options:
Table
Option
Pros
Cons
Notes
Sell Metals
Instant liquidity, no debt
Lose ownership, miss future gains
Open
Pawnshops
Fast, no credit check
25–50% APR, low LTV, lose collateral
Open
Bank Loans
Potentially lower rates
Strict requirements, no bullion used
Open
Credit Cards
Convenient, no collateral
20%+ APR, fees, high debt risk
Open
There are no rows in this table
⁠
Key Takeaway: Gold loans offer a middle ground — secure, fair, and built for bullion investors.

Conclusion

A gold loan bridges liquidity needs with wealth preservation. Instead of selling metals or falling into pawnshop traps, you can borrow against bullion securely stored in Money Metals’ Depository.
With competitive rates, up to 75% loan-to-value, and no hidden fees, our program is built for investors who value both freedom and security.
👉 Ready to learn more? Call 1-800-800-1865, submit an inquiry, or apply online today.
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