Global markets are responding to political uncertainty, making them volatile. It can be hard to second guess next steps in terms of financial management for those that like to make smart decisions.
While some markets go into freefall, others can hold steady in turbulent times. However, some – as the pandemic showed – like gold, can overperform.
Live gold prices are on the increase, with a rise of 40% over the last 12 months. May 2025 closed with a record price of over £2,483 per ounce and further growth is predicted.
Outlook for global gold prices
Global leaders in financial services, Goldman Sachs and JP Morgan, are both forecasting a further rise in gold for the rest of 2025, predicting £2,960 per ounce and £2,940 respectively. Both banks suggest that gold prices could exceed £3,200 by mid-2026.
Unlike stocks and shares, a higher number of people may find that they may have gold products, bullion or gold coins to sell. If you own gold in any form but aren’t ready to sell it, the next 12 months could be an excellent opportunity for you to release the value held in your gold and maximise your initial investment.
Gold Loans – Fast and flexible financing
For gold owners that want to access the value held in their gold without selling it, a loan against gold allows you to secure a loan without selling your asset. With prices climbing ever upwards, now could be a financially astute time to borrow against the value of your gold for loan.
Gold can be used as collateral for loans, with pawnbrokers and gold loan specialists offering loans secured against gold. With gold prices rising, a pawnbroker could make you a significantly higher loan offer than this time 12 months ago.
Pawnbrokers’ base valuations on live gold market prices, with the loan amount paid into your bank account often within 24 hours of your valuation.
Then, the pawnbroker will securely hold the gold on loan until the end of the loan agreement period (typically up to 6 months), returning your gold once the gold loan has been repaid in full. For the financially savvy gold owner, this can be a smart way to optimise your gold investment without losing ownership. Though, if the loan amount and accrued interest is not repaid, the assets may be sold so the pawnbroker can recover the funds.
What’s my gold worth?
Pawnbrokers will clearly set out your gold valuation, but the calculation of gold loan is simple and straightforward. Gold lenders and pawnbrokers will typically offer a loan-to-value (LTV) ratio that is based on the current market price of gold. Gold loans will also typically have lower interest rates than other types of loans.
With gold prices rising by approximately 40% over the 12 months leading up to May 2025, an ounce of gold is now worth significantly more than it was in May 2024. Pawnbrokers typically apply a loan-to-value (LTV) ratio of around 60% to 70% of your gold’s current market value. This means that, at today’s elevated gold prices, your borrowing capacity has increased—without needing to pledge any additional gold or make any extra effort. UK pawnbroker Suttons and Robertsons has created a live gold loan calculator, allowing you to see how much you could borrow against your gold based on the current daily gold price.
Pawn shops offer Instant access to gold
Gold loans are used by many different business owners and entrepreneurs to support them financially. The value of gold is leveraged by gold owners to improve their liquidity at speed, especially if other investments are hard to access. The gold loan interest rate will be more competitive than typical lenders, meaning that you’ll maximise gold prices without paying a high financial penalty in interest rates.
Gold loans can are also used as bridging loans for unexpected property investment opportunities or as cash injections for businesses, cutting out the lengthy processing times involved with traditional lenders, like banks and other financial institutions.
With gold prices at record highs, smart borrowers can now release more value from a loan with gold, making gold a fast and flexible option for financing.