I am looking for a business that will lend money against 99.99% gold - the gold will be the collateral for the loan.
2007-01-11 07:21:24 · 2 answers · asked by chinarider 1 in Business & Finance ➔ Investing
I wonder if anyone would. Gold prices fluctuate so much that in the event of a default, the value of the gold may not cover the loan amount. I'm not saying they won't, I'm just wondering if they would on an assets with such wild price gyrations. Need to do some research on that one.
2007-01-11 11:46:47 · answer #1 · answered by 4XTrader 5 · 1⤊ 0⤋
Why not just sell the gold and use the money for whatever it is needed for?
Taking out a loan is a losing proposition. You have to pay interest. You do not earn interest while holding gold. True, it may go up in value, but there are no guarantees.
Twenty five years ago, gold was selling for over $800 per ounce. Just to keep up with inflation, it should be selling for about $2400 per ounce in today's market.
2007-01-11 15:50:05 · answer #2 · answered by regerugged 7 · 1⤊ 0⤋