Gold isnāt just jewelry in Indiaāitās
a family safety net. From weddings to medical emergencies, it often comes to the rescue. But when youāre in urgent need of money, should you
mortgage your gold or
sell it outright? Hereās a guide to help you choose the best option.
1ļøā£ Gold Mortgage: Borrow, Donāt Part With It
Ā·
How it works: You pledge your gold with a bank or NBFC and get a
loan against it.Ā·
Benefits:o You retain ownership of the gold.o Loan can be repaid in installments.o Useful if you expect to
repay soon and reclaim your gold.Ā·
Caution: Interest rates apply; missing repayments may lead to
loss of gold.
2ļøā£ Selling Gold: Immediate Cash Without Repayment
Ā·
How it works: You sell your gold to a jeweler or gold-buying service.Ā·
Benefits:o Instant cash, no future repayment worries.o Useful in
long-term emergencies where repayment is uncertain.Ā·
Caution: Once sold, you
lose the gold permanently and potential future appreciation.
3ļøā£ When to Mortgage
Ā· Short-term financial crunch.Ā· You have a clear plan to repay the loan.Ā· You want to
retain the gold for family or investment purposes.
4ļøā£ When to Sell
Ā· No immediate plan or ability to repay a loan.Ā· Emergency requires
full cash without strings attached.Ā· gold has
significant market appreciation, but you need the liquidity now.š
Pro Tip: If gold is
sentimental or part of your long-term investment, prefer mortgaging. If cash is urgent and repayment isnāt feasible, selling may be the better option.
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