Take your time, keep asking the questions. The more you read (from both side of argument) the better informed your decision will be. Oh yeah, I originally predicted 1750 aud for gold by end of this year. Obviously my head has been blown off by the spot movement. At the end of the day, can't really predict spot movement, but outlook for gold is pretty good at 1800+ assuming economy is crap(but not collapsed).
Falling spot wont make a bit of difference - unless you have to sell at that particular point in time. if you can manage the repayments and only need to sell say 6 months or more into the future then its a no brainer mate
The only scenario where you would win if you borrow to buy PMs is if PMs growth rate outpaces the interest you are paying on your loan. All other scenarios, buying bit by bit and cost averaging wins. Which do you think is more risky and stupid? Which scenario is more likely to happen?
Not true - unless you're borrowing from a loan shark. credit card balance transfers can be done at between 2 and 6% interest. silver is and will continue to outperform this WITH EASE over any reasonable period. savvvvi??
I think you may have mixed things up there mate - cos when you leave your money in the bank and earn "interest" - its actually the government that will be robbing you ... along with the RBA and their banker pals who are robbing you. If you buy PMs on the other hand you stand a chance of avoiding these robberies...
Sigh. Everyone keeps missing the fact that this is in relation to saving up your cash in the bank to buy PM's as opposed to saving it under your mattress. Not saving up your cash as an investment. Until you learn what risk entails, you won't understand buddy. This is the same attitude that housing speculators have. "Get a personal loan at 11% to buy a 100% geared investment in silver because it always goes up." "Get a mortgage loan at 7.5% to buy a 100% geared investment in a house because it always goes up." Sound familiar? If you borrow, you are a speculator, if you buy, you are an investor. Buyers have the most important element of an investment on their side - time. Borrowers don't.
I hear what you're saying, but keep two things in mind: 1. During the property bull market, how many people made money saving to buy properties cash without lending? Now compare that to how many made gains through leverage?? 2. Where do you think we are in relation to the PM bull run? Nearly spent?
The answer to both your question would be something along the lines of how long is a length of string. No idea mate, at least with the housing market it's been manipulated up, with the silver and gold, it's been manipulated down. Yes, the market will win in the long run but how many people will the banks wipe and and put in to negative equity first? And how many of these people who were impatient in the first place be patient enough to sit through it all? Impatient decisions don't breed patient ones. Look at what happened when they raised margins the other week... I think that we are right at the start, just as you believe - but taking a punt in the short run with personal loans is not sound.
Hi guys, New to the forum here so go easy on me. I've been reading this thread and have seen some interesting answers... I do not fully agree with the statement of borrowing money to stack. AND, I also do not fully agree that your house that you live in is an asset. I think what it comes down to is balance. What I mean by that is that you should ask some questions to make sure whatever solution you pick, that it works for you. For example. Could you continue your current lifestyle? (assuming it's a positive cash flow lifestyle) Could you service the actual debt without it taking away from your lifestyle? Is the return on your investment going to leave you with a profit? (Winning money at the casino is easy, it's the walking out that's hard) And I think most importantly: WHAT IS YOUR EXIT STRATEGY? On the whole house is an asset thing... It's not an asset until it's paid off in my opinion. Yes it provides shelter and all that, but what if you default on your payments for a few months? Will it provide shelter once the bank takes possession of it? In my eyes, silver would be something you could liquidate easy in small quantities and for example pay a 6 month lease up front in a rental property. You don't own the place, they can't take it from you. (Now I know some of you might think: What if the bank repossesses it from that owner? At least it's not your net worth that's screwed.) You can't just take some of your bricks and mortar to Bunnings or Home Depot and sell it back for a profit now can you? If you want to treat your house as an asset for leverage, go for it. As long as you have an EXIT STRATEGY in place and it does not add stress to your current lifestyle. A lot of Ozzies here got screwed with the 21K First Home Buyers Grant because they took on a debt that was bigger then they could handle after the banks upped the interest! As always, do your DD first and make sure you are in a comfortable place to service the debt. Last thing you want is a bad credit history when you go for a loan. Again, I'm not an expert, I just have an opinion. I'm not saying it's right or wrong, it's just what is. Whatever meaning you attach to it, it's up to you. JRB - Even though I am team Jacob, I stack silver...
Nobody is truly/always right or wrong. Only in hindsight will our opinions be proven right or wrong. At this point, everyone is just trying to figure out what to do. Heck, maybe after this zombie apocalypse happens, all sorts of prediction goes out the window.
