How do banks view silver and gold when assessing assets?

[Nedsnotdead]

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[House]

If your sticking to bars then just sell your stack show the bank you bank balance. Get the loan approved then buy your stack back.
Im sure there would be a few on here that would happily buy your stack. Then sell it back a few weeks later for say... A kilo of silver

Now that's an idea... hope you have $50k to loan me when I come a-knockin' on your door for it!

 

[errol43]

The banks themselves are not backed by assets..I posted "are Australian Banks into derivatives?

SS member Nukz posted graphs of the big 4 Australian banks..They showed that all our banks are professional gamblers and are exposed to derivatives in a huge way. They are only solvent while this section holds up.

Regards Errol 43

 

[JulieW]

How about numis collections?

Slightly off topic, but still somewhat pertinent.

True story. Last year an associate needed some cash in a real hurry, and ended up going to Cash Converters with his numi collection. The collection, amongst other very valuable items, included a 1930's penny. They loaned him $1000.

I've watched those sort of people, and the 'pay day loan' slitherers and not surprised at all.

 

[SULLA]

.... should you lodge your gold with them its liable to get hypohtecated.....

And if you lodge a property title as security the banks are going to hypothecate that too?

 

[Guest]

I like how banks don't view pm's as as assets, it shows how real money is like garlic to a vampire and how farked things have gotten. It shows how much things will change when their house of paper burns down.

 

[realisticmystic]

How about numis collections?

Slightly off topic, but still somewhat pertinent.

True story. Last year an associate needed some cash in a real hurry, and ended up going to Cash Converters with his numi collection. The collection, amongst other very valuable items, included a 1930's penny. They loaned him $1000.

 

[Big A.D.]

I guess part of the problem for banks is when someone walks in with $50,000 worth of gold, how can it be proven that the gold is their own and has not simply been lent to them by another to swindle the bank.

I guess you could of any asset really but it is a lot easier with PM's.

I'd say that already happens quite a lot with parents loaning fiat to their kids to make up the deposit on a house. Nobody admits to the bank that their parents came up with the deposit and that the kids (the borrowers) essentially have no equity themselves.

 

[grinners]

I guess part of the problem for banks is when someone walks in with $50,000 worth of gold, how can it be proven that the gold is their own and has not simply been lent to them by another to swindle the bank.

I guess you could of any asset really but it is a lot easier with PM's.

I'd say that already happens quite a lot with parents loaning fiat to their kids to make up the deposit on a house. Nobody admits to the bank that their parents came up with the deposit and that the kids (the borrowers) essentially have no equity themselves.

Yes I agree.

 

[willrocks]

I got a loan against my primary residence. When they asked about "assets", I gave them a list of my liabilities (car, furniture, house ...), and never mentioned the bullion.

I imagine if I went bankrupt, and had the bullion listed as collateral the bank would want it.

 

[SULLA]

I got a loan against my primary residence. When they asked about "assets", I gave them a list of my liabilities (car, furniture, house ...), and never mentioned the bullion.

I imagine if I went bankrupt, and had the bullion listed as collateral the bank would want it.

ssshhhh!