Loans on silver

copperhead

copperhead

Active Member
I have found for me once I have silver , the enemy is emergency moneys needed and selling off some silver
wile you can buy more when good times return .
But in your head you don't have what you sold , that reality is more apparent later on.
Wile there is no finical logistic to a loan on your silver as the interest paid to borrow off it could buy more silver .

The saying a bird in the hand is worth more then 2 in the bush is the feeling .So far I have repurchase in excess
the amounts I sold in the last 5 years but I wonder if a short term loan would of been the way to go on those occasional times
particular if you sell off potential numismatic future value coins .

Depending on future scenarios , having potential numismatic future value coins will inspire one to save them more so no matter what .
 
If you HAVE TO sell precious metals because you need money, then you are most likely BUYING TOO MUCH precious metals. Your portfolio should contain no more than 10-20% precious metals. Anything beyond this and anything bad that happens such as 'having' to sell is your fault and you are fully liable for any losses incurred. Any loans for, or on precious metals in my mind are usually silly. It is a non income generating asset and any interest pending against said asset will usually wipe out the long term annualised gain, therefore making the initial investment virtually pointless. If you want to buy an asset that you can barely afford and may have to borrow against in the future then buy an investment property. If this is your plan and you are still wanting to buy precious metals then don't, buy a boat.

P.s. I understand that life has it's unexpected moments and plans change, but the effects of these plans changing can be reduced by better planning in the first place
 
Yes True , If I could redo life as I know now I'd make some changes . Over all I buy an amount I can afford but bills can hit hard
and all who depend on me want the money . So the stacking seems to be most successful as a having a gain . But yes
I have used my silver for emergency $ and I was thankful to have it & rebuilt the stack .
\The percentage of money used in the last 5 years was nominal & actually paid with from scrap metal
but yes as prices have been low I have been hitting harder to average out my stack .
I will take a good look at my silver asset wealth and work to increase cash savings to exceeds silvers 10% amount
so thanks that is good advice .
 
Perhaps re-look at preparing a household / business budget.
http://www.aifs.gov.au/institute/pubs/costsrv.html

Once you have re-assessed your "life plan", reconsider your investment strategy.

Loaning money to buy?

Many folk take out a loan for shares, investment properties, precious metal etc but you should have spare cash to service any emergency or margin call without tapping into day to day expenses.

Perhaps ask your-self why you think loaning money to buy metal is appropriate for you.

The chart may help jog your memory where you can save.

Best of luck. :)



costsrvfig1.gif
 
I know I'm riding life like as if it was a wild horse & I need organize and I will ,
I work - I pay bills - some times $$ can get tight . But I had a wish 5 years ago when I started to save silver
& I could of just as easily never pushed on But I did and I continue to even when I have to make my wallet low.
But now I see this silver quest is just the first step to all the above advice . So it's a good thing & I will Not Stop Stacking
 
I always have a cash reserve in case of emergencies that just sits in an account. I've only had to draw on it once but I was glad to have it without the need to sell metals, a kidney or whore myself out
 
DanielM said:
If you HAVE TO sell precious metals because you need money, then you are most likely BUYING TOO MUCH precious metals. Your portfolio should contain no more than 10-20% precious metals. Anything beyond this and anything bad that happens such as 'having' to sell is your fault and you are fully liable for any losses incurred. Any loans for, or on precious metals in my mind are usually silly. It is a non income generating asset and any interest pending against said asset will usually wipe out the long term annualised gain, therefore making the initial investment virtually pointless. If you want to buy an asset that you can barely afford and may have to borrow against in the future then buy an investment property. If this is your plan and you are still wanting to buy precious metals then don't, buy a boat.

P.s. I understand that life has it's unexpected moments and plans change, but the effects of these plans changing can be reduced by better planning in the first place
Click to expand...


Not saying that your wrong but I really doubt most people here have more than 20% of their investments not in PM.
 
Caput Lupinum said:
I always have a cash reserve in case of emergencies that just sits in an account. I've only had to draw on it once but I was glad to have it without the need to sell metals, a kidney or whore myself out
Click to expand...

Buzz the kidney.
 
Cash reserve in case of emergencies is so very important . Silver to me seems better then what a bank pays in interest
regardless for the last 30 years $150 per week savings would of been easy and from 1980 to 2000 $300 per week
but I just had no concept I spent money like many people (for the day) with diligence $ 234,0000 in a bank or Gold - Silver - Bonds - stocks - I would not of cared just to have done it , done some thing . Well now I do some thing . There is always a better investment
and there is also doing nothing & one can live a life different ways
 
But seriously, I have the same problem, then again I would rather save in silver than cash. Don't see why I should leave my money to be gambled on the derivatives market without getting my share of the leverage.
 
Golightly said:
Cash Reserve? you mean the hooker and blow money?
Click to expand...

Blow bad investment
The Hooker could be good money spent especially when your sitting in an old age home thinking back about your youth .
 
copperhead said:
Yes True , If I could redo life as I know now I'd make some changes . Over all I buy an amount I can afford but bills can hit hard
and all who depend on me want the money . So the stacking seems to be most successful as a having a gain . But yes
I have used my silver for emergency $ and I was thankful to have it & rebuilt the stack .
\The percentage of money used in the last 5 years was nominal & actually paid with from scrap metal
but yes as prices have been low I have been hitting harder to average out my stack .
I will take a good look at my silver asset wealth and work to increase cash savings to exceeds silvers 10% amount
so thanks that is good advice .
Click to expand...
Well I guess on the bright side atleast you have something that can be easily converted to cash when you needed it, that's something positive you've done for your family. Many other people would have to go into or deeper into debt. Like I said, it's not smart business, but atleast you're being proactive, which in the end of the day is still a hell of a lot more than most other people. As for the bills, I can understand. I have one month a year where bills exceed both my and my wife's income for that month, it's hard, but not as hard because I know it's coming so I put an extra $150/week into the mortgage then pay my $25 redraw fee which is more than offset from the interest saved. It's a little bit harder every week, but a lot easier in the long run
 
Holdfast said:
Perhaps re-look at preparing a household / business budget.
http://www.aifs.gov.au/institute/pubs/costsrv.html

Once you have re-assessed your "life plan", reconsider your investment strategy.

Loaning money to buy?

Many folk take out a loan for shares, investment properties, precious metal etc but you should have spare cash to service any emergency or margin call without tapping into day to day expenses.

Perhaps ask your-self why you think loaning money to buy metal is appropriate for you.

The chart may help jog your memory where you can save.

Best of luck. :)



http://www.aifs.gov.au/institute/pubs/costsrvfig1.gif
Click to expand...
WoW, I am not even close to that graph. For instance you could almost swap the alcohol and tobbacco portion for the housing portion. However, just starting Champix that whole portion is going to basically dissapear because the smokes are just about gone and my alcohol needs are in a surplus just from the 20+ or so bottles that are gifted to me throughout the year.
 
Diversify. You can't put all your money in Silver unless you want to take high risk. Buy silver options and leverage if you want to magnify the risk further.

Ideally, determine a percentage breakdown of investment instruments, eg
10% precious metals
30% cash
30% equities
30% property

If you are paying off your home, then your equity is the value used for calculation. Put your available money into these buckets whilst trying to keep them as close as practical to the percentage total.

When silver price is down vs the others, you should be compelled to buy more. This is the safest strategy IMO.

The hard part is working out the percentages.
 
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