Which Gold Ornaments Fetch the Maximum Loan Value per Gram?

Have you ever wondered why some gold ornaments fetch a higher loan amount than others? This is one of the most common questions among those seeking financial assistance through a gold loan. Gold has long been a go-to asset for quick financial aid, especially in India, where it holds cultural and financial significance. But not all gold is made equal when it comes to availing of a gold loan per gram. The purity, type and design of your gold ornaments significantly determine the gold loan's highest rate per gram.

Table of Content

• Gold Ornaments Made of 22K or Above
• Gold Ornaments Without Any Diamonds or Stones
• Gold Ornaments Made of 18K or Below
• Investment-Grade Jewellery
• Traditional Jewellery
• Conclusion

Read the blog post as we will explore which gold ornaments can fetch you the highest gold loan rate per gram, helping you make a more sound decision when you need financial assistance. Knowing how different factors influence the loan value can ensure you get the most out of your precious gold. Let us begin.

Gold Ornaments Made of 22K or Above

Gold ornaments, especially those made of 22K gold or above, are among the most valuable assets when seeking a gold loan. Ornaments made of 22K gold or higher tend to fetch the best loan value. 22K gold, with its 91.6% purity, is one of the most common forms of gold used for ornaments and is highly valued by lenders. Their purity ensures the highest gold loan per gram valuation. However, keep in mind that the gold loan per gram will always be influenced by the current gold rate. Type ‘gold rate today’ to learn more about the exact value.

Gold Ornaments Without Any Diamonds or Stones

Another important consideration for getting a higher gold loan per gram is the absence of diamonds or other non-gold elements. Lenders usually assess the gold content of your ornament and evaluate its weight in pure gold. The weight of the diamonds or stones is eliminated from the calculation of the loan values. So, if your ornament is made of pure gold, you will receive the maximum loan value directly proportional to the weight of the gold.

For instance, if you own a plain 22K gold bangle, you will receive the loan amount based solely on the weight and purity of the gold, which works in your favour. On the contrary, if the jewellery piece has diamonds or other stones, the weight of these non-gold materials will be excluded from the valuation, thereby reducing the overall value of the amount you wish to secure.

Gold Ornaments Made of 18K or Below

On the other end of the spectrum, gold ornaments made of 18K gold or lower typically fetch a lower gold loan per gram value. While 18K gold is still a popular choice for making ornaments, it only contains 75% gold, with the remaining 25% made up of other non-gold materials. As a result, lenders will value 18K gold ornaments at a lower rate than their 22K or 24K counterparts.

Moreover, most diamond-studded gold ornaments are designed with 18K gold. As mentioned earlier, since the weight of the diamonds and other non-gold elements are not considered, the gold content in these pieces is what counts. Hence, it is important to note that even though the jewellery pieces may appear valuable because of the design, the loan amount will be lower, reflecting the reduced purity and the deduction.

Investment-Grade Jewellery

Investment-grade jewellery, which is typically simple and minimally embellished, also fetches high loan values. These pieces are often crafted with 22K or 24K gold, ensuring a high level of purity. Additionally, they are designed with transparency in mind, making it easier for lenders to assess their gold content and give an accurate picture of total loan valuation. These types of gold ornaments are usually free from heavy gemstones or other materials, so the gold weight remains the primary factor in the valuation.

Traditional Jewellery

Traditional gold jewellery, like gold necklaces, mangalsutras and bridal sets, which are typically made from 22K gold, also fetch a substantial gold loan per gram. These pieces are often large and heavy, ensuring that the gold weight is significant, even if the jewellery includes some intricate designs.

However, if there are gemstones or other non-gold elements, it is important to understand that the final loan amount will be calculated based on the net gold content, with deductions for the non-gold elements. Hence, when pledging traditional gold ornaments, it is important to ensure that the jewellery is as simple as possible and free from excess embellishments to maximise the highest gold loan rate per gram.

Conclusion

If you are considering a gold loan, Muthoot Finance can help you get the most out of your gold asset. With years of experience and trust, Muthoot Finance offers competitive interest rates, quick processing, and accurate evaluation for all your gold loan needs.

Whether you wish to pledge a plain gold chain, traditional jewellery pieces or gold coins, Muthoot Finance ensures you get the highest gold loan rate per gram. Explore their gold loan offerings alongside checking gold rate today’ and experience the ease of securing a loan against your gold.