$0.64 seems ridiculously cheap from our perspective today but just remember to take into account what that 64 cents also bought back in 1900 in terms of its purchasing power
Yeah true.. I read somewhere before that 1 oz of silver buys the same things 100 years ago as would today. That's what buying silver is mainly about: wealth preservation.
It ALL depends on how much interest you are paying for your debt. I have some CC debt, but ALL of them are 5% APR for the life of the loan. And I started to buy silver from May 2010, and glad I did. Since most of my purchase bet. May 2010 to Sept. 2010 are now at least doubled in value. So I am not in a hurry to pay off my debt. Plus, I am paying 5% for minimum payment, so it won't be too long before I pay off.
I doubt you will see silver go back to $20 in the next couple of decades $25 is possible though. As for gold, Chinese will buy MORE in 2012 than they did in 2011. http://news.coinupdate.com/major-gold-market-changes-coming-next-year-1130/ "Major Gold Market Changes Coming in 2012 ... According to GFMS, one of the most respected analysts of precious metals markets, the Chinese market, government and private, will absorb more than 22 million ounces of gold in 2011, sharply higher than 2010 levels. That means that the Chinese are taking about 30-35% of all newly mined gold off the market. The total probably would have been even higher except for the difficulty in acquiring physical metal. ..."
Get rid of your debt. It would be a shame to be stocking silver. You lose your job and have to sell your silver anyway. (possibly at a loss). Nothing is certain, least of all your future income. I do not care what you do, even if you are self employed/work for youself, that future income stream may not eventuate.
Annihilate that debt. I'm not sure of your age or circumstances but to be able to commit 50% of your income to debt smashing or otherwise is a gift that can be radically altered very quickly. I naively funded my entire haul with debt just over a year ago which was fine as it climbed and climbed early 2011 and even fine as it plunged later in the year as it was a long tern strategy, but circumstances changed in a big way this year and was faced with maybe being forced to sell at current prices, the only time it has been less than my purchase price the whole time - the horror! Long story short - have had to make unbelievable changes to keep the Silver and pay debt off over the next 6 months (which I am doing). If Silver is a long term strategy and debt payments long term also, this is fine burt remember your life can progress in many unexpected ways over that course and you wouldn't want to be forced to sell. Take that 1st post! Silvertronic
I agree with everyone else here. Pay off your debt. You could spend that $20,000 in saved interest on silver as well. p.s. Auspm is right about consolidation. Even if you do decide to consolidate, call your CC company and demand a lower APR or tell them you will change carriers.
i faced a very similar decision, and i agree with everyone about YOUR debt, mostly because it's a very high interest. if it's at MUCH lower interest then having an investment mix with some debt repayment becomes more attractive as the possible gains can offset or even beat the cost of the debt. personally i think the key concept is to be making positive progress financially. either reducing debt, or increasingly wealth at a rate greater than the cost of the debt. it's worth remembering though that PMs are quite liquid and can be converted to fiat to cancel out loans if needed. on another tangent, i think it also depends on why you're buying PMs. if you're trying to make short term financial investment, you might decide one way, if you believe that economic and/or social poop will hit the fan and you believe you need an asset to trade with, you might act another. you also may or may not believe that supply is going to dry up at some point, that might influence your decision. so i think you should review on your reasons for buying and that will answer what's right for you.
What if silver falls in price? You have effectively used borrowed money (@20% p.a.) to pay for an asset that is decreasing in value. Think of it this way, if you had zero debt, would you borrow $30,000 (@20% p.a.) to buy silver? hmm, i'd hope not!
Silver may or may not go up. If you're paying off debt you can be sure you're getting ahead. I've got no credit cards or personal debts only property debt @ 7%pa. I cant think of anything better to be putting my money into at the moment than paying off debt even at 7%. C
I am new to the forum .. but thought I would add my 2c. If a choice between silver stacking or paying debt .. pay off the debt first everytime. Or altrenatively, hedge your bets and split any left over cash at the end of the month into three. 1/3 for paying off debts 1/3 into cash high interest online account eg ING, Bankwest 1/3 for silver stacking Good luck!
Let the widely forcast hyperinflation take care of your debt and, infact, borrow more to buy gold and silver. Your debt will slowly dissolve in an inflationary currancy crisis, and you will be left standing with sh!tloads worth of precious metal, with bugger all to pay off.
Another newbie here.Been there done that.Pay off the debt first.If you really need silver like I do,pay a portion of debt off then reward yourself with a roll of your favorite coin then go back to paying the debt.Sudden illness or reversal of fortune will overwhelm someone in debt.Trust me on this!
Hi guys, newbie here and wanted to share my two cents' worth. There are many factors to consider, but if you make 60k and owe 30k, that's 50% and you need to work on that aggressively. Having said that, the way things look in Europe and America, so much paper money will continue to be printed that in terms of actual value, your debt is going to become easier to pay off while your precious metals continue to gain in value and increasing speeds. Then again, all the credit you can't move to lower interest loans will incur interest at the rate of 18.5% to 25% per annum, so if you think about it, paying off that debt is actually making you 18.5% to 25% - that's a pretty good ROI. I'd work with your bank manager to consolidate that credit, pay it off as much as you can, but set a little aside so that you can buy silver every couple of months or so. Good luck!
