Hi all Just wanted to ask the question, would you consider loaning money to buy up in silver? I'm sure you have all heard about the opinions of people such as Mike Maloney and Bix Weir telling us currency all around the world will be worthless, so i was wondering what your thoughts were on taking out a loan? Even at 10%-15% p.a just to get physical silver in your hand! Cheers Scott
A very risky game indeed. Others tried it before the last big dip as the mania caught on when silver approached $50.00. If you decide to do it, perhaps only borrow a small amount that you won't be left in hot water if there is another fall in spot price.
to be honest i got a personal loan to buy the silver i have now. Have to factor in the interest and whatnot so that adds another 16% that silvers gonna need to go up. Im happy i did it though, as we all know silver will go to the moon eventually so itll pay itself off then.
Go back to the early April posts,this came up then.Some brought a New suit,some lost their shorts. My vote "NO" you would have to be a lunatic to borrow to invest in Silver in this Economic Climate REDBACK
Silver and gold can crash, nothing ever goes up forever. When will silver and gold crash? When economy starts to recover. During recovery, some assets like real estate or PM can deflate, others like food and fuel might inflate. However in the long run, once economy is on track to recovery (even a slow growth recovery) prices will return to near production prices (1200+ for gold, 15+ for silver). During those times, stocks will again become a good investment. The exact time frame? Don't know.
Well, it's all just a best guess. No such thing as a sure thing unless you have a crystal ball. And what if it shoots to the moon in 10yrs time and not in the next few years?
what happens to debt if shtf will we be able to pay off our mortgages etc with a few bits of silver/gold ?
The only asset I'd go into debt for is a house. You'd live in that, so it serves dual purpose. Your silver doesn't provide shelter, can't be used as food, won't keep you warm. In fact it's fairly useless except as a store of wealth IMO (oh and to look at - it's pretty). So why are you storing the banks wealth in precious metals?
Wow, you hit the nail on the head so hard I nearly choked on my cornflakes. And paying the bank for the privilege as well. Pure gambling if 100% of your holdings is borrowed.
It's not debt itself that is causing the financial woes, but being in too much debt in one asset class. Americans started speculating with real estate, depending 100% on capital gains and going all in borrowing. When real estate deflates, liquidity vaporizes and they are left with more debt than equity. Then the credit default swap kicks in and kills the banks. The lesson that we should all take is to not go into too much debt and that we should not put all our investment into one asset class (RE/PM/Stocks/FOrex/Business). To the op: if you have to borrow to get into PM, I suggest trying to balance household budget and cut down on spending, that will earn you much more money than leveraging for PM. Wealth creation is done through earning, wealth protection is through diversification.
If silver dropped right back because of a margin call to low 30s I would say yes buy a bit, but over 40 I would say it is too much of a gamble . I have found that it is hard to buy physical on dips though before its back up again. It could just get to the mid 40s and stay there for years, who knows? Better to save up or sell something and buy up small as you can afford it. I have bought most of mine in the last couple of months but will be holding it for a couple of years and am not expecting too much. If the price keeps up with inflation I would be happy. Getting into debt in anticipation of making big money is risky (I was going to say foolish actually!) :| .
The debt paradigm is over and by going into debt you are increasing demand for their currency. No debt, no banksters, no cleptocracy. Get out of debt. Buy what you can afford. Or so I reckon.
Always a bad idea, doesn't matter what the price is. If you cannot afford to buy PMs then I strongly suggest you don't hold it. Instead of going into debt I would just try and save some money every week.
Gino's got it (just in my opinon) right on the knocker. This is the time where you should be looking to get rid of as much debt as you possibly can - personal loans, credit cards, whatever. There are uncharted waters with stormy seas ahead - no one knows for sure what's going to happen, the last thing you want at a time like this is to have people knocking on your door reposessing stuff or kicking you out of your home. Clear your debts is priority one - diversify some fiat into PM's is number two (just IMO).
