Gold makes a great asset to secure an immediate loan – Suros Capital

08 May 2024

Short term specialist lender Suros Capital, which lends against luxury assets, has seen an increase in the number of cases where customers are using gold as security against a loan. Cases using gold are up 35% on the same period last year and Ed Blackmore, Business Development Director at Suros Capital explains the main reason why.

He said, “Gold has traditionally been seen as a safe investment, especially in times of economic uncertainty. Whether in the form of bullion, Krugerrands, coins or jewellery, it is a versatile asset to own. With the price of gold having gone up by 15% in the space of a year*, we are able to reflect gold’s increase in value with LTVs up to 75% for gold items. Clients are therefore able to borrow more, hence the increased interest in using gold as security.”

Ed continued, “Not only is gold being valued higher but because in the form of jewellery or coins it is easily carried to our London offices which in turn results in immediate appraisal and valuation and therefore funds can be released in hours.”

The following case study illustrates how quickly clients can be ‘in funds’.

A property developer required additional finance and was unable to obtain what he needed against his property portfolio. His mortgage broker, knowing that he had a large gold collection, suggested he contact Suros Capital. He was looking for the maximum he could obtain, which equated to an LTV of 75% - £83,000. The loan secured against gold coins and Krugerrands was approved and cleared funds were in his account within 24 hours of the first enquiry. The short term loan had a notional term of seven months and will be repaid from the sale of property.