Precious Metal Lombard Loan

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A precious metal Lombard loan is a form of Lombard loan in which precious metals are pledged as collateral for the purpose of granting loans .

Although it is one of the oldest forms of lending, it is rare today and is usually only handled in pawn shops .

The starting point for calculating the mortgage lending value is the effective precious metal value of the pledged item. For coins (depending on the pawn shop), a 20% discount is taken into account from this lending value , so that the lending limit - and thus the maximum possible loan amount - is 80% of the lending value, even if the collector's value is much higher.