Guide
Sell your gold or keep the gold loan? A fair comparison
Should you sell pledged gold or keep paying the gold loan? A balanced comparison of costs, risks and when each choice makes sense.
- A gold loan keeps your ornaments but costs interest and carries default risk.
- Selling frees you from the loan but means the gold is gone.
- Nobody can predict the gold rate. Decide on your own need, not on a guess.
- Ask for a written figure for each option before choosing.
The two choices
Keep the loan and repay it later. You keep your ornaments, and you pay interest until you close the loan.
Sell the pledged gold. A buyer pays your lender, you receive the difference and the gold is no longer yours.
Side by side
| Keep the loan | Sell the gold | |
|---|---|---|
| Do you keep the ornaments? | Yes, once repaid | No |
| Interest | Keeps building until closure | Stops once the loan is cleared |
| Money in hand | None extra | The value of the gold minus the payoff |
| Risk | Auction if the loan goes overdue | You lose any later rise in the gold rate |
| Good when | The need is short and you can repay on time | You do not need the ornaments, or repayment is a strain |
Questions to ask yourself
- Can I repay on the due date without borrowing again?
- Does this gold have sentimental value I would regret selling?
- Is the interest I am paying large compared with what I could get now?
- Do I need the money left over after the loan is cleared?
About the gold rate
Some people wait to sell because they expect the rate to rise. Others sell because they fear it will fall. Nobody can predict this reliably, so base the decision on your own needs. See what affects the gold rate to understand why it moves.
Get the figures in writing
Ask your lender for a dated closure figure, and ask us for a written slip showing the value of your gold, the loan payoff and the money you would receive. Compare them, with no pressure. Start with our calculator or read about releasing pledged gold with ClearKarat.
Keep reading
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Read moreSell old gold
See how ClearKarat does it in plain sight.
Read moreStart with one message
See the weight. See the test. See the price. Then decide.
Send us a line on WhatsApp. We will tell you what we need, and you will not be asked to commit to anything.