Gold is one of the assets that holds high value and is commonly used as an investment by the public. Many people choose to buy gold as a form of investment because it is considered more stable compared to other investments such as stocks. However, the question is whether it is better to sell or pawn gold?

Firstly, let's discuss pawning gold. Pawning gold is a process where we provide our gold to a bank or pawnshop and receive cash as a loan that needs to be repaid within a specified period (6 months) with predetermined interest. If we fail to repay the loan, our gold will be sold or auctioned by the bank or pawnshop.

When gold prices rise can increase the value

Investing in gold is often seen as a way to increase its value when gold prices rise. Gold investment can also serve as protection against inflation and economic instability. Therefore, when the price of gold increases, gold owners can see significant profits. As an investment, the performance of gold depends on market and economic factors that cannot be fully predicted. Therefore, the advantage of pawning gold is that you still own the gold and can increase its value at any time.

Credit score will not be affected

Exchanging gold for cash does not directly affect a person's credit score. Credit scores mainly depend on payment history, credit utilization, and other factors that indicate individual financial reliability. However, exchanging gold for cash can affect overall financial conditions, such as reducing debt or increasing financial liquidity. If individuals use the cash obtained from exchanging gold wisely, it can help in positive financial management. Therefore, although exchanging gold for cash can affect overall financial conditions, it does not directly impact credit scores.

Lower selling price for gold

The lower selling price of gold has been a concern for those who hold gold as an investment or asset. The main factors of their loss are the current purchase cost of gold and the spread cost when selling it. The decrease in the price of gold can also be caused by various economic and market factors, including global economic conditions, demand and supply, and geopolitical factors. For those who want to sell gold, a lower price may mean receiving lower returns than expected or anticipated. However, a lower price for gold can also be an opportunity to buy gold at a lower price for future use or as a long-term investment. It is important for individuals to consider market conditions, conduct thorough research, and consult with financial experts before making decisions regarding gold or other investment assets.