Would you pay off debts or buy silver first?

I would have hit them up for a company car if an option
GP and Hiho are both spot on just different angles
Don't forget disposable cash as well,would be wise in this economic climate to have a percentage of your income put away as readily accessible cash.
So work out your percentages toward all 3..Bars/car repayment/Disposable cash.The ratio is best set by yourself.

REDBACK

 

Well I can't tell ya what to do.... BUT I can tell ya what I did... BUY Ag!!!!

 

This topic covered to the death. Silver could go to bugger all tomorrow..maybe not. Balance yourself and don't listen to someone too heavily..it's your money you are using, not theirs.

 

Accumulate some cash for unforeseen circumstances, buy some silver and make sure you get rid of the debt especially as it is on a car, a depreciating asset

 

Tough, normally i'd say pay off debt but with prices where they are i'd probably pick up Silver as well stopping when prices got to mid 30s.

 

Firstly i would get income insurance. GPs advice was sound. then youve covered all bases

 

What you also have to consider is what would happen if interest rates started rising and how secure is your job if things turn bad. There is no point having PMs if you are forced to sell them to pay back your debts just when you need them most!

Minimize your cost base, and as GP says, prioritize debt reduction, but stack a little.

While ever you are in debt you've got to dance to the puppet masters.

 

Now Hotel,don't start bringing in life experience or you'll rock the boat and you know how many boats have sunk around here!
:lol:

REDBACK

 

Unrealistic?
They should pay it off as soon as they can.
Once they are done, they will be secure in one of the best SHTF tools around!

Primary needs such as shelter and food are more important than precious metals, but not important enough to go into debt. @_@

I have no debts - never have - and will continue buying PMs for insurance.
When I can buy a place to call my home outright, I will.

I know for some people it's too late.
They've already had kids without making sure everything was ready (house, career etc..), or they've gone into debt before they learned about the direction this world is heading.
Maybe for them it's unrealistic - I guess they have nothing to lose now anyway :|

 

Depends on the interest rate on your loan.
If the rate is small , say inflation rate, don't pay off your loan early as it is cheap money. Buy silver hoping it will increase in value faster than the rate on your loan.
If interest is high then pay off as quickly as possilble then buy silver with spare cash.

Before deciding though just imagine you had jumped into silver a month ago.

 

I would buy gold instead of silver with potential house payment money. Silver is too volatile for me to risk having to sell it at the wrong time.

 

debt kills you. pay off all your high interest debt as quickly as possible, only exception is a home. because PM is an investment, its not generating cash flow. If a mega crisis hits like 08, PM will tumble since jobless people cannot buy PM and your silver will not be liquid at a decent price. pay off your credit cards first, then lower interest debt.

get a 6 month supply of emergency cash because we ALWAYS have a crisis around the corner (car brakes, injury, etc).

THEN start buying silver aggressively.

If you have no bills, you can live off of very little money. Its amazing to see people who make $100k a year but have zero dollars each month because it all goes towards debt. Silver is an asset, buying silver aggressively while you're in debt is putting the cart before the horse.

Now buying 1 or 2 collector pieces is no big deal, but don't start taking a $5-10k position in silver when you have $10k in 15% credit card debt...

If you lose your job you can't pay your debts in silver. You need AUD. This is a proven formula to get ahead in life, safely, without taking risks. You could say silver will increase 10x. Well you could also go all in at a casino. Putting all that into silver is an investment with risk. You should get out of debt first.
The people who wipe out first are the people who finance their investments with debt, then cannot meet the debt obligations. next are the people who put too much into non-liquid assets without having cash reserves. silver is not liquid... especially not numeristic silver like lunars.... try taking lunars to your local silver dealer and see how much over spot he'll give you for that 1kg dragon proof.

 

Well, silver bars are fairly liquid I'd say. I've never heard of anyone having a difficult time offloading a silver bar for spot price plus a few bucks. There's always ebay too.

I guess what it all boils down to is a bet on which will increase faster against the AUD: the loan's interest rate or silver's market moves. Silver has been trading sideways for over a week now. Its very frustrating because its hard to tell which direction its going to jump.

For now, I think I'll go 50/50. 1 10oz bar per week and an extra $400 toward my car loan. That's still 5x faster paying off than the bank is expecting. Maybe if silver is sitting above its 50 DMA, I'll just save cash that week and buy bars with it when it moves below the line.

 

+1, and make sure it's the non- cancellable variety.

 

OP: I wouldn't take anything on this forum as financial advice as it has not taken into account your situation.

Personally I would be putting in all resources to pay off the car.

 

Not really a straneg question.

Depends on the interest rate, if low I would keep it and buy more silver. If its high say from a Car Finance Company, then pay the Debt off.

Personally, I've kept my debt and bought a little bit of Silver with what's left over.

Cheers

 

Its not advice. Its just what I would do in his situation

 

BUY SILVER

 

I wouldn't put all my resources into a car. Cars depreciate too fast to be able to sell the car to pay off the loan if something happens to you, especially if it was brand spanking new. At least if you had silver, you could sell it to pay off the loan if something happened to you. I am not comfortable with debt, but I think I'm a little less comfortable with owning nothing but a car. That's the mumbling in my head behind my vote for 50/50.

 

Yeah I'd have preferred to not have the debt on the car but that wasn't really an option on the table. I'm not going to get into why though.

50/50 does sound pretty good, with the modification that when the price peaks I'll save as cash and wait for dips to actually buy the silver.

Oh speaking of buying, on Friday I took the bus to the Perth Mint after work, and bought a 10oz'er. I couldn't take it with me though because they had just run out of stock a bit before I showed up. They said I could buy as much as I wanted though and they'd let me pick it up at a later date. The mint is a cool place. They have a gold nugget there over 200oz! Can you imagine finding that? I bought my 10oz bar though, and paid $350 for it. The bus ride and time at the mint added 45 minutes to my commute home, so I don't think I'll be doing that every week. Maybe I can buy remotely and go in to pick up once a month or something.

And to be honest, I'm a bit disappointed with the quality of the bars for their price. I mean, they're just cast slabs of silver. I've seen minted bars in the US with much less premium and they look fantastic. But you have to take what you can get I guess. Ordering from the US guarantees at least a 3% loss right off the top.