Would you ever take credit to buy bullion?

Discussion in 'General Precious Metals Discussion' started by Bobhawke33, Jan 10, 2020.

  1. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    It’s like a mortgage, people have no problems paying off a mortgage but the problem comes after you sold the house and got hold of half a million which can turn out to be a curse.

    This is why Chinese people like to pass down houses in belief that their offsprings are less likely to squander it away.
     
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  2. alor

    alor Well-Known Member Silver Stacker

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    its like collectors bars, many like the receipts more than even the body metals
    the price tag, on the old receipt can sell for more than the actual items, be it a machine, or a house or land
    cash payment

    it may work even with +10%, that does not stop there depending on the purchased loan amount as time drag on, and flat silver price ??
    there in no guarantee in life
     
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  3. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    In the US we have to pay sales tax if it's a card.
    Cash purchase is not taxed so can be much cheaper.
    My font looks weird.
     
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  4. Calendyr

    Calendyr Member

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    This is a stupid idea. Precious metals don't give a good return. They are an edge against inflation but are outperformed by pretty much every single other type of investment.

    You don't want to lock money you could need on the short turn into precious metals because the second you buy you are at a loss with the premiums. For Gold it isn't so bad, say, 2% to 10% but with silver, some of the premiums are so
    high you will never recoup them. Even if you go with low premiums on silver, you are still looking at about 7% on buy and 1% on sell. Add interest to that and it will take you a decade to break even!

    What your friend should do is make a list of all he wants in his stack and buy as free money he is sure he won't need becomes available. That is the only way to stack.
     
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  5. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    The spread is what is preventing people from buying. Silver and pt has crazy spreads. But I see this as an advantage also because it means less speculation and the price is less inflated.

    Why don't people buy pt even if the majority of people expect plat to be worth more than gold one day? It's because of the crazy spread. It took me sometime to get over the 6-7% spread I pay for pt.

    Back to topic, pm is for wealth preservation. Credit is not your wealth.

    Oh, I missed out VAT, which applies to silver and pt in many places.
     
    Last edited: Jan 17, 2020
  6. alor

    alor Well-Known Member Silver Stacker

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    most expensive bid/ask
    Pd, Pt, Ag, Au to the cheaper
     

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