What are Bullion loans? Everything you need to know

Make the most of your valuable metals without having to sell them

At AU Bullion, we are committed to providing our customers with accessible financial choices without diminishing their investments. And that’s exactly where bullion loans fit in — a clever, short-term loan option that enables you to receive quick cash without giving up your gold and silver.

But what is a bullion loan, really, and how does it work? Let’s dissect.

What is a Bullion Loan?

A bullion loan is a secured loan that you collateralize with your gold or silver bullion. You do not sell your precious metals, and instead, you borrow against the value of your bullion for immediate access to capital with the collateral intact. When the loan is paid back, your precious metal is returned to you in the same condition.

Bullion lending is not new — it is a method that goes back over 3,000 years. The only distinction now? You can now get access to such loans easily and securely with trusted dealers such as AU Bullion.

The Main Advantages of Bullion Loans

  1. No Credit Check Required

Credit history is not a factor here. Because your bullion is collateral for the loan, your approval is based on the precious metals value rather than your credit rating.

  1. Efficient, Trouble-Free Process

In need of fast cash? Bullion loans are available within 24–48 hours of your metals’ authentication.

  1. Keep Your Investments Intact

Spending gold or silver when the market is low isn’t always the best. Through a bullion loan, you access the stored value with no loss of your long-term investment.

  1. Lower Interest Than Title or Payday Loans

Relative to the lending options with excessive interest charges, bullion loans provide a much less expensive alternative — a sound financial decision.

  1. Spend Money on Anything You Require

Whether for an emergency, for a business investment, or for a personal necessity, there are no limitations for your fund usage.

Consider the Following Before Taking a Bullion Loan

Although bullion loans have numerous benefits, there are risks. Here are the things you need to consider:

Loan-to-Value Ratio 

Typically, you can borrow 70% of the market value of your bullion. For example, if your gold is worth $10,000, you would be eligible for a loan of $7,000. The balance is used to protect against market fluctuations and default.

Short Loan Terms

They are usually short-term (usually 3–12 months). If you want long-term finance, this is not the best option for you, even though it does help reduce interest expenses.

Risk of Forfeiture:

In case the loan isn’t paid back, your bullion can be sold to regain the owed amount. Therefore, it’s essential to borrow an amount you can comfortably repay.

Bullion Loans vs. Pawnshops: How Bullion Is Different from Pawnshops and bullion loans can seem alike, yet are quite different.

Higher Cash Payment: Bullion loans pay out up to 70% of your item’s value — most pawnshops pay much lower (as little as 25%-50%).

Secure Storage: When you store your metals with AU Bullion, your metals are kept in insured vaults, not behind the counter.

Expert Service: We are precious metal specialists. You will be dealing with experts who realize the intrinsic value of your holdings.

Why Choose AU Bullion for Your Bullion Loan?

At AU Bullion, transparency, reasonable pricing, and the protection of our customers are a priority. When you engage our services, you are dealing with one of the most well-known brands in the precious metal business. Whether you are an experienced investor or simply need short-term liquidity, we can deliver flexible lending solutions tailored to your requirements.

Ready to Access Capital Without Selling Your Gold?

Whether you possess bullion in gold, silver, or platinum and need immediate access to cash, a bullion loan might be the way to go. Call AU Bullion or visit loan for gold page to find out more about our loan possibilities and how we can assist you in getting the most out of your precious metals, without your having to sell them.

Call us or stop by one of our store locations to get started!

Vancouver Store 

736 Granville St, Unit 930 Vancouver, BC V6Z 1G3 

Monday–Friday: 8:30 AM – 5:30 PM | Saturday: 11 AM – 4 PM 

+1 (604) 676-4838 

Brampton Store 

8887 Gore Road, Unit 37, Brampton, ON L6P 2K9 

Mon–Fri: 9:30 AM – 6:00 PM | Sat: 11 AM – 4 PM 

+1 (905) 605-6757 

AU Bullion — Your Premier Partner for Gold, Silver, Platinum & Now… Bullion Loans.