An advertising business owner has secured a £150,000 short-term loan after using his gold bullion and Krugerrand coin collection as security, avoiding the need to sell the assets and trigger a capital gains tax bill.
The borrower required immediate working capital and funds to cover a tax payment, but did not want to use property as security.
Initially considering selling his gold collection, he instead approached Suros Capital, which agreed to take the bullion as collateral.
The loan was completed on the same day the collection was assessed, valued and placed into Suros Capital’s temporary custody.
The four-month facility is due to be repaid once business cashflow improves, with the borrower expecting significantly stronger trading conditions by February 2026.
Ray Palmer, director of Suros Capital, said: “The gold price is now up c. 50% year on year and likely, according to Morgan Stanley, to reach £3,430 per ounce by mid 2026.
“In this case, our client has owned his gold bullion and Krugerrand coin collection for ten years, when it was valued at £46,000.
“Today, that same collection is worth £200,000, making it equally valuable to owners as security for a Suros Capital loan.”
He added: “Suros Capital provides an increasingly valuable borrowing resource for those clients who are asset rich and who do not want to sell in order to meet their pressing need for finance.
“More and more financial advisers are recognising the value of having an alternative source of short term finance for clients with luxury assets.”
Suros Capital said luxury assets such as gold, jewellery, watches, art and classic cars continue to be used more frequently as security for short-term borrowing, particularly from clients seeking a rapid turnaround without refinancing property or disrupting longer-term investment plans.
