LONDON, October 12, 2010 /PRNewswire/ --
With gold prices on the stock exchange hitting its eighth record high in 2 weeks, the soaring prices are beginning to have an effect well beyond the confines of the Bank of England.
Gold has traditionally being seen as a safe haven in times of uncertainty, 2010 has proved no different, Pawnbrokers too have seen a big expansion in their gold loans as people hedge their bets as to whether prices will rise further.
Online pawnbroker Borro.com has seen a 300% rise in Gold loans from the first quarter of 2010 to the last. That is due to the fact that a new loan applicant would receive a 22% larger loan offer now than they would have received than at the start of the year for the same items or gold weight.
Furthermore savvy customers are making the most out of the rises as people can release money from their gold without having to sell their items.
Paul Aitken, CEO of Borro, comments, "As gold prices have risen we have seen a huge increase in gold related loans coming into our offices. There's trinkets, engagement rings, antique bullion, there was even a jeweller who took advantage of our prices needing a loan against a large amount of his own goods."
A Which report* found pawnbroker Loans represented much better value than TV advertised gold buying services, where pawnbrokers loaned nearly three times the amount that buying services were prepared to pay.
Individuals that have gold in their possession posses a wealth of options and can get value in the current marketplace. Will the price of gold rise further? It's a distinct prospect and will closely follow the economic trends and the fortunes of the larger global economies.
*Which? report dated 21st January 2010 - Which?
Borro.com was the first online pawnbroking service in the UK and worldwide when it launched in 2008. Its aim is to revolutionise pawnbroking for a 21st Century audience, by making it accessible, convenient and discreet. Sweeping away any vestiges of the once seedy image of pawnbroking, Borro.com is a modern fully-regulated financial services business based in offices in Chancery Lane, London, and in Oxford.