I know this is a strange question, but my life is real strange anyway so it fits. I recently got a fairly high paying job in Perth, and am probably going to be earning $750-1000 per week more than my cost of living. I also just bought a new car (had to) and I'm financing about $15,700 on a 5 year loan. I can easily afford to pay extra on the principal of the loan and have the car paid off in 6 months or so. But I was thinking about how I could be buying Perth Mint bars every week instead. I was thinking about how maybe every Friday after work I'd hop on the bus over to the Perth Mint and pick up a pair of 10oz bars (currently priced at $340ea). So at the end of six months I'd have roughly 50 10oz bars of silver -or- a paid off car. In 6 months (if the bull continues) 10oz bars will probably go for between $450 and $550 which would be a total of ~$25,000. Or - a paid off car loan. On the other hand, if the bull does not ride, its just money sitting in silver waiting for the next bull, and I have to keep paying for the car. I don't know, it seems like a good idea to buy the silver now, but I'm not sure if in principle, its a stupid thing to buy metals when you have debt. What are all your thoughts on this?
Both - but get rid of the debt faster. So instead of 20oz a week, pick up 20oz/month, and pay the car off in 8 months not 6. I basically consider car loans consumer debt - get rid of it.
Agreed. But the sooner you get rid of debt, the better. Now, if only I would listen to my own advice...
Not really a written rule to somethingLike this. Just take each month as it Comes, while the spot price is down I would buy silver. But if the price goes up a little maybe pour more money into your loan!
Yeah. Trouble is, what is "down" when it comes to spot prices these days? lol Silver seems to be at a crossroads. It could go either way, but I'm confident it'll end up in the 40-50+ range before another year passes. I like the idea of buying smaller amounts and paying the debt off still. That way if silver does drop, I won't be left holding the bag with a car loan I could have paid off, and a bunch of silver I can't sell to pay it off with. Thanks.
Buy silver. If we get hit with high inflation most debts are relatively fixed amounts ( excluding variable interest rates). As a general rule wages are pushed to keep rough parity with inflation. The potential for silver to sky rocket many times past the levels of inflation are a primary concern, and (should,hopefully) more than offset interest rate relaunched.
I am anti-debt, so of course I'd say you should pay it off asap. Paying interest is a certain loss, precious metals going up is an uncertain gain.
Few questions Do you have a home mortgage? If so do you have equity in your property? Can you claim the interest charged on your car repayments for business? Could you possibly earn extra income surplus to your weekly needs? Cheers Alfie
with silver this low I would increase your payment by say 25% and then tip what you have into silver, you will kick yourself if by the time you pay off your debt siver is $50 and oz :/
As you recently bought a new car, you've already set your priorities. Pay off your debt. Silvers not going that far in the next 6 months. Missing out on a little bit of silver profit is not going to send you broke. Loosing your income and not being able to pay off your loan could.
In saying that i presume that would mean that nobody who has a mortgage should purchase any metal then? Just trying to illustrate how unrealistic that is...
oh yeh? if so, for how long do you think that may be the case? And secondly even if that did occur, do you reckon you'd be able to source any?? :lol:
Do you currently own any silver? If not I would consider buying some to establish some sort of a core position over the next couple of months. I would then be splitting the money 50/50 into accumulating Silver and paying down your debt. Then once the debt is gone you will be able to go back to 100% silver. I have found with my silverstacking is that consistency is what works best with building the stack.
Normally if the debt is a mortgage, I'd be paying off required repayments and buying metals. Since you can kill your loan in only 6 months, I'd be aiming to pay it off. I don't think we'll see any real metal action till 2-5 years time anyway.
Most of my debt is managed to reduce my taxable income so in my situation it helps to have some debt. I just need to find the sweet point so that I have just enough debt to give me the full benefit but no more so I am not paying interest that I don't need to. I have silver to soak up any fiat that I don't want to lose to inflation. I have cash so that I can pay off emergencies and so that I am not in a position to have to sell silver at a loss if something comes up.
I would buy silver as long as it is below say $34 spot (now!), above that pay off the loan. You will kick yourself if silver shot to .........dare I say it .........no I wont - anyway, I would get a bit of a stack now while the price is down. I am more optimistic than Haggai.
