Pawn shops benefit from rising gold prices

If you own gold jewelry, for example, and need cash only once, Crédit Municipal de Nantes will lend you more money than before. In fact, the interest rate on the pawn loan increases to 18 euros per gram of 18-karat gold, compared to the previous 16 euros.

An almost mechanical effect. While the price of gold has risen 20% since the beginning of the year, reaching 44,300 euros per bar, Crédit Municipal de Nantes has reviewed the amount of its pawn loan that benefited nearly 7,000 people in 2018. It will now have access to a larger loan for the same object. In fact, a gram of 18-karat gold is valued at 18 euros, compared to the previous 16 euros, which represents an increase of 12.5%.

And this is just the beginning. If gold continues to rise, we may have to revise our purchase price upwards, explains Jean-François Pilet. The general director of the Municipal Credit of Nantes explains the increase in the precious metal by three interdependent factors: the increase in geopolitical tensions, the massive purchase of gold by central banks and the low, even negative, yields in the bond market .

With this new pricing policy, Crdit Municipal also allows customers who already have a pawn loan to see their amount increased at maturity. Anyone wondering about the value of their jewelry with this rise in the price of gold can go to the Crédit Municipal de Nantes Tours Angers Rennes agencies to benefit from free appraisals, adds a statement published on Monday.

If necessary, the Nantes Municipal Credit, created in 1813, can also be responsible, at the request of individuals, for the sale of coins and jewelry. A monthly auction is organized to acquire items, particularly gold, at prices between 25 and 26 euros per gram.

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