Gold Loan Default Worries Loom As Metal Loses Sheen
  • Saba Ashraf
  • Jul 02 2013

Gold prices have hit the lowest level since August 2010 and the precious metal is down 23% since April. The massive correction in gold prices has led to rising concerns of defaults in gold loans. Banking sources say that gold loan lenders are afraid that as the value of the gold collateral erodes, they may face a widespread wave of defaults.