Cash for gold service providers are a dime a dozen in South Africa, advertising very attractive rates in order to lure more customers to transact with them. Unfortunately, this makes it very hard to distinguish one from the other. And so you open yourself up to the risk of being cheated through hidden charges, high interest rates and very low valuations for high-grade gold and other valuables.
How to find trustworthy lenders?
There’s one sure-fire way to find a lender you can trust with your valuables because you are guaranteed fair price on the valuation as well as industry standard interest rates. It’s very simple and you don’t need to read a lot of articles on the Internet or visit a lot of pawnbrokers, just ask the pawnshop owner if they are registered with the National Credit Regulator (NCR).
What is the NCR?
The NCR was founded following the enactment of the National Credit Act 34 of 2005. The regulatory agency is tasked to regulate the credit industry of South Africa. It is responsible to educate, conduct research, come up with policies for the development of the industry, register lenders and financing entities, and implement the provisions in the law.
If there are complaints against pawnshops or gold exchange service providers, the NCR will also investigate and possibly impose sanctions against the erring companies or lenders. The law is there to make sure the credit market is not working against the disadvantaged. It also aims to address the demands of the low-income families and make sure that credit is available to remote and isolated communities.
Gold as commodity and collateral
You can browse online and read all the articles on how to sell gold, but you can shortcut the process by dealing with lenders who are registered with the NCR, the Diamond Club of South Africa and the Jewellery Council. When times are hard and you feel that the four corners of the room is closing in on you, gold or jewellery is a good collateral to apply for an income proof-free loan without any hassle and background checks on your credit history. You can get your money as fast as you can complete the necessary documents. Don’t worry about losing your gold or any other valuables because pawnbrokers who are members of the NCR follow the standards from the appraisal, drawing up the terms to safeguarding your valuables to make sure they are still there once you come back to collect.
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