Close this search box.

Industry-Leading Pawning, without the hassle.

What is Pawning?

Pawning is a feature that allows UPMA members to borrow against the value of their precious metals without selling them. This means you can receive funds in paper dollars while still retaining ownership of your metals, which can be gold, silver, or Goldbacks.

Key Features of the Pawning Program:
  • Interest Rate:
    The pawning program charges a monthly fee of 20 basis points (0.2%) or an Annual Percentage rate of 2.4%.
  • Repayment in Kind:
    Members must repay the pawn in the same metal they pawned (e.g., gold for gold, silver for silver, Goldback for Goldback).
  • Limitations:
    There is a $10,000 monthly limit for pawning transactions to ensure the program can be funded without external lenders.
  • True Link Debit Card:
    The program supports loading funds onto the True Link debit card.
  • Tax-Friendly Liquidity Solution:
    By pawning metals instead of selling them, members can avoid potential capital gains tax liability, which aligns with current US pawning laws.

Advantages and Service Benefits

  • User Interface
    Members will have access to a pawning option through their user portal. Here, they can pawn their metals to load a paper balance onto their True Link debit card or utilize the paper differently.
  • Independent Tracking
    Each pawn request is tracked independently and can be viewed in the member’s transaction history.
  • Monthly Fee
    A monthly fee is calculated from the balance on the first day of the month. If a pawn is initiated mid-month, the fee will be prorated accordingly.
  • Insufficient Funds
    If there are insufficient funds to cover the fees in the member’s metal account from which the pawn was initiated, the pawn will convert to a liquidation, potentially triggering capital gains liability.

How to Start a Pawn

  1. Login: Access your UPMA member portal using your credentials.

  2. Navigate to Pawning: Look for the pawning feature within the portal’s options.

  3. Initiate a Pawn: Choose the amount and type of metal you wish to pawn.

  4. Review Terms: Carefully review the terms of the pawn, including the monthly fee and repayment expectations.

  5. Confirm Transaction: Once you agree to the terms, confirm the transaction to initiate the pawn.

  6. Load Funds: The equivalent paper balance will be loaded onto your True Link debit card, which you can use for transactions.
  • Remember, it’s essential to understand that the value of the pawned metal may fluctuate. If the value of the metal increases before you repay the pawn, you may need to return more metal than initially borrowed to close out the pawn. For more detailed information or specific queries, reach out to the Alpine Gold support team for assistance.