Gold Loan Warning: High Prices Lure, But Risk of Auction Looms

• Record gold prices, fueled by Iran-Israel tensions, led to a 125% surge in gold loan volume last year.
• Experts warn against taking excessive loans due to high gold prices, as temporary surges can lead to a debt trap.
• Gold price volatility creates 'margin money risk'; banks demand additional funds if prices drop, leading to auction if unpaid.
• Difficulty in loan repayment and the emotional distress of losing ancestral jewelry are significant risks.
• Gold loans are advised only for medical emergencies or productive activities with future income potential, not solely due to high prices.