Since as far back as the ancient Egyptian civilization gold has been viewed as one of the most valuable, versatile and desirable materials in the world. Investing in gold and borrowing against the value of gold is not a new concept and has been practiced for centuries.
Caye International Bank offers its bank customers the ability to participate through its gold loan program which provides modern security, flexibility, and convenience along with the traditional benefits of gold financing.
Understanding the Premise of a Gold Loan
For millennia, gold has been valued as a material of high worth and a way in which an investor could diversify their risk against the fluctuation of foreign currencies. However, there are times when an investor will require cash from their portfolio, and in situations like these the gold loan program offed by Caye can be ideal.
Caye allows its bank customers the ability to borrow money against the value of their stored gold. An example of how this gold program works is, say you have $200,000 worth of gold, although you need access to $100,000 in cash as soon as possible. While you could go through the hassle of moving and selling your gold, this will ultimately deplete your reserves.
Instead of this you could rather take out a gold loan and be able to borrow the $100,000 if you already have your gold stored and monitored within a facility. This would mean that the gold becomes a form of collateral for the loan, and once you have repaid the loan in full, you will then be able to regain full possession of your stored gold.
This type of financing is not a new concept and in centuries past, wealthy families often took out a gold loan against the value of a necklace or a collection of gold coins. The example outlined above is essentially the same practice, but much more secure with flexible terms.
When to Use a Gold Loan Program
There are many reasons why you may need to participate in a gold loan program such as the one offered by Caye. For example, you may be one of the many savvy investors who prefer to hold their wealth in a diverse asset portfolio or rather you may need access to cash quickly due to identifying a great investment opportunity, which you need to move fast on.
Alternatively, you may have noticed a dip in foreign currency exchange rates that you want to take advantage of immediately.
If time is of the essence, then transporting and selling your gold could take too long. On the other hand, a gold loan can get you access to liquid assets rapidly and help you bridge your investment gap. Then at some point in the future once you have enough cash in hand, you could then repay your gold loan making your gold investment whole again.
Why Gold?
This due to the ability of being able to take out loans against many items of value. Gold still to this day stands out as a particularly appealing choice due to this precious material having largely retained its value over many centuries. Also, unlike certain real estate, collectible cars, or even fine wine… gold’s value has never fluctuated wildly!
Although the price of gold does go up and down, there are never wild swings, which makes banks and lenders feel secure when they hold gold in reserve. Gold also has tremendous appeal to investors due to there always being someone interested in purchasing the gold, which means that you’ll never need to worry about holding on to assets that can’t be sold.
Factoring in Gold Security
A great benefit of the gold loan program with Caye is that the bank will provide security for your gold assets. Through most gold loan programs, the financing entity will be tasked with the responsibility of keeping your gold safe.
If you’re participating in a reputable program like the one offered by Caye, you will not need to worry about the safety of your gold. This due to your gold being stored in a secure vault in Zurich, Switzerland, this even while you’re borrowing against its value.
The Gold Loan Program at Caye International Bank
Caye offers its bank customers a gold loan program that safely allows them to borrow against the value of their stored gold. With their gold safely secured in a vault in Zurich, they are then able to borrow up to 75 percent of the market value of their stored gold.
If you decide to participate in this program and are faced with the unlikely event that your loan becomes worth more than 85 percent of the value of your stored gold, you would then able to supply additional capital, or your gold could be sold to cover the differential amounts.
To participate in the Caye International Bank gold loan program, you will need to become a current bank account holder at Caye. You will also need to have a minimum initial stored gold holding of over USD $100,000.
If you’re new to the world of purchasing precious metals, then Caye can also help you source, purchase and store gold at or below market value.
The costs involved with the gold loan program at Caye are minimal to the borrower. Annual interest rates are around 5.5 to 7.5 percent for a line of credit against the value of your stored gold. If you decide to take out a loan worth more than 50 percent of the market value of your stored gold, then Caye will ensure that your gold storage fees for the vault in Zurich will be free.
Caye’s gold loan program is the ideal way to harness the power and value of gold as well as providing opportunities for investment diversification.
Contact the bank today to learn more and discuss your gold options.
