The gold price in Norwegian kroner has reached new record levels during the year. Among other things, a stronger dollar has led to the gold price rising from approximately NOK 570 at the beginning of the year to NOK 715 at the beginning of December.
In five years, the price of gold has doubled. Lånekontoret, Norway’s only pawnshop, sees an increasing interest from Norwegian households in pledging their gold items.
There has been an increase in the loan portfolio during the year, and approximately 85 per cent consists of pledges in gold objects, they write in a press release.
Can borrow more today
The price of gold is controlled by a number of different factors. Of course the price of the raw material itself has a big impact, but exchange rates, economic cycles and the uncertainty in other markets also play a role. World unrest also tends to push the price of gold up further. This means that you can borrow more from your gold today than you could, for example, three years ago.
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– There is an alternative to consumer loans that is safer, and that is to borrow from yourself by pledging your own valuables with the Lånekontoret, says Helle Biseth Markussen, general manager at the Lånekontoret in the press release.
– With the high price of gold, it is possible to get an increasingly large loan amount on one’s gold items, she adds.
Can mortgage several things
But can mortgage items with second-hand value such as watches, antiques, silver items, coats and designer bags, but gold has been the most common thing to mortgage.
If you cannot or do not want to redeem the mortgage, it is sold at auction, and any profit goes back to the borrower.
Lånekontoret is the only pawnshop in Norway and has a long history. It was founded in 1888 by Oslo municipality to help the poor and prevent usurious loans. Today, Lånekontoret is part of a foundation-owned company that offers loans to anyone who has valuables of lasting value.
2023-12-15 20:33:52
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