Silver has been traditionally considered one of the most stable investments, particularly in times of financial uncertainty. Like any other precious metal, it’s rare, chemically inert, and not abundant in nature, so it has high economic value.
In addition to its intrinsic value, silver doesn’t carry credit risk and can’t be inflated. Hence, it offers unique protection against financial, political, and military upheavals. That’s why many investors put their money in it and other precious metals, especially when the stock market or economy is in turmoil.
Considering all these benefits, you’re probably thinking of selling your silver to get quick money. But hold your horses! While that’s a good option, using it for a loan is much better. With a questionable economy, your silver will likely appreciate in value. If you’re unsure where to start, here’s a roundup of how to borrow money against your silver.
Have Your Silver Items Appraised
If you’re not in a hurry, it’s better to have your silver items appraised first. Doing so can enlighten you of its current market value, which usually gets influenced during inflation or international conflict.
One important tip: clean your silver items before having them appraised professionally. There’s no need to scrub them or apply any abrasive cleaning solution on them. A simple wiping will do, so they’ll at least look presentable.
If you can’t have them apprised, you can still do a quick online search for the current prices of silver for free. Of course, if you have emergencies, an appraisal shouldn’t be your priority. It also doesn’t mean you can’t get a loan on silver. An appraisal is just an assessment, not a loan guarantee.
Explore Borrowing Options
Several financing companies offer loans on silver, and there’s no reason not to search through all of these options in your pursuit of the best rate and terms. Additionally, you may want to see if prices are significantly more generous in one lender versus another.
It may feel more convenient to go directly to those you’re familiar with, but doing this could mean missing out on the competitive terms.
Apart from the banks, here are the most common financial companies where you can take out a loan for your silver:
Local Dealers
Find out if there are precious metals firms or dealers in your area. They’re considered the most convenient and reliable sources to cash out or take out a loan on your silver. Trustworthy dealers will likely get a fair price for your silver based on several factors.
They’ll primarily consider your silver’s size, weight, content, and purity. They’ll also have to check what’s going on with the current silver market and its demand. Specifically, its relation to the appropriate commodity trading price and trend.
Online Silver Dealers
Many precious metal dealers have online platforms now. They’re as reliable as their brick-and-mortar counterparts, even better sometimes. Their main advantage is that they’re accessible anytime, anywhere. They also usually disburse funds through electronic funds transfer or send a check to a valid account. While this might come in handy for many, it could be inconvenient for some, especially who need cash urgently.
Pawn Shops
Like physical precious metal firms, pawn shops accept silver as collateral for a pawn loan. They usually lend around 25-60% of resale value on average. That could mean you’ll likely not get fair market value. Another thing to remember is that there’s typically not much wiggle room to negotiate how much they’re willing to offer. Still, pawn shops are worth the try, especially if you need quick cash.
Inquire Your Eligibility
Most of the time, anyone can borrow money against their silver items as long as they’re at least 18 years old. Also, whether you’re a professional or unemployed, your occupation usually doesn’t matter with this type of loan, so they don’t ask for many requirements either.
Most lenders won’t also mind your credit score. This type of loan will be a secured loan. In other words, you’re going to use silver items as collateral. That also means if you can’t pay your loan, the lenders can legally keep or sell your items at your risk and expense.
Still and all, some lenders might ask for other requirements. It’s your best interest to inquire about what makes you eligible for a silver loan. This can help you save time and focus on other lenders where you’ll likely qualify for a loan.
Choose Your Lender and Start Your Application
Shortlist all the financial companies with the best offers. Only opt for lenders with attractive interest rates and nominal costs. Once you have the list, eliminate those whose offers you can’t qualify for at the moment (you can just go back to them later). Afterward, send your application, including requirements, to the remaining lenders on your list and wait for good news.
Most lenders will promptly process loan applications on silver items. The time from submitting an application to receipt of funds can be as long as ten or fewer business days. This is where inquiring in advance comes into play. Some lenders have specific requirements, so not meeting those will likely just increase your waiting time.
The good news is that some lenders approve loans and disburse funds as quickly as within the day. The key is to choose the right lender!
Final Thoughts
The popularity of silver loan schemes has risen significantly. The best part of it isn’t its hassle-free process. It’s that part when one’s credit has no bearing on the approval process and the interest charged, allowing other borrowers with poor credit to avail of financing. It’s still advised, however, to always be careful of suspicious offers and opt for reputable lenders.
