Opinions Needed: Should I go into debt to buy more silver?

T

ThisIsJoe

Active Member
Silver Stacker
Would love some stackers thoughts on this. I've heard one camp say don't ever go into debt, but I've also read on here that a lot of you guys have done so, maxing out credit cards, etc.

I have an OK stack, but would like to double it to be sufficiently happy. I'm considering borrowing $25k from the banksters.

Thoughts? Yay or nay? Reasons with your answer would be great. And can anyone reccommend a "good" bank/lending outfit to go with?

Cheers guys!
 
ThisIsJoe said:
but I've also read on here that a lot of you guys have done so, maxing out credit cards, etc.
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I would say maybe 3 members have publicly claimed this, not a lot. Some people did it when silver was $10 cheaper too.

Can you afford the hit if silver was to drop say 20% or even more?
 
ThisIsJoe said:
Would love some stackers thoughts on this. I've heard one camp say don't ever go into debt, but I've also read on here that a lot of you guys have done so, maxing out credit cards, etc.

I have an OK stack, but would like to double it to be sufficiently happy. I'm considering borrowing $25k from the banksters.

Thoughts? Yay or nay? Reasons with your answer would be great. And can anyone reccommend a "good" bank/lending outfit to go with?

Cheers guys!
Click to expand...

Yes I was one... back in beginning of Feb when it went below $30 I maxed out $35,000 on a credit card....
 
Well I'm very long on silver so if the price drops I'll probably buy more (if I can afford it). I'll ride the pullback waves. When silver bull has run its course and if somehow I end up 20% down from where I started (very hard to believe but of course it COULD happen), its no huge loss.
 
If you can't cover the downside, then don't.

How would you deal with the possibility of having to liquidate part of your (possibly devalued) stack to cover payments on your loan?

Hopefully it wouldn't come to this, but you do have to ask yourself such questions, I think.
 
gbickle said:
Yes I was one... back in beginning of Feb when it went below $30 I maxed out $35,000 on a credit card....
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:o

Sheesh - you would want to be VERY confident that the % gains in Ag exceed the exorbitant interest on your plastic debt?

Wouldn't a bank loan have been a more efficient way to do that?
 
The biggest risk is ending up with negative equity - either silver drops in price, or it doesn't rise as fast as the interest you're being charged.

If we all definitively knew what the silver price was going to do, then the answer would be easy.
 
I'm aversive to debt, in the full knowledge of how it is created from nothing.

As soon as you give them your work, which is the only "real" part of the contract, they are free to do whatever they wish with your work. They can short the very thing you are working for.

When a lot of people are going into debt to buy metal, I know we are well into phase III

Sure, you could frontrun the herd, and some will.

Silver is extremely volatile as an investment. If, as James Turk suggests, we are now near the end, then yes, now is a good time. You will only be proven right in retrospect.
 
Citizen said:
gbickle said:
Yes I was one... back in beginning of Feb when it went below $30 I maxed out $35,000 on a credit card....
Click to expand...

:o

Sheesh - you would want to be VERY confident that the % gains in Ag exceed the exorbitant interest on your plastic debt?

Wouldn't a bank loan have been a more efficient way to do that?
Click to expand...

$300 / month Interest on the credit card = approx $1000 interest so far .... vs over $20,000 gain in Silver value if I choose to cash out now .. :)
 
As for debt, so long as you have the capacity to repay, then long term it might work out well.

But you are becoming part of a system. A system most of us despise.
 
If you intend to pay back the loan purely with income and not the silver and or proceeds from the silver then yes go for it. But if the silver is part of the repayment plan then no, forget it
 
gbickle said:
$300 / month Interest on the credit card = approx $1000 interest so far .... vs over $20,000 gain in Silver value if I choose to cash out now .. :)
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:o

Fair play. A serious pullback would be a nasty look, still. I'm sure that you have calculated various contingency plans.

Still, I'm curious. If it is not too rude to ask :P - of all the forms of debt you could have utilised, you chose to use credit cards? Why not use another form of loan that would perhaps not incur such heavy interest?
 
Some credit cards such as Bankwest's offer a 5.99% for 9 months... that's better than most personal loans out there.

I'm sure there are a few even better offers but I've never really gotten myself into debt just to buy PMs :)
 
thatguy said:
If you intend to pay back the loan purely with income and not the silver and or proceeds from the silver then yes go for it. But if the silver is part of the repayment plan then no, forget it
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That's the plan to pay the loan back only with income. That's why I thought it might work out.

CONSIDERING a low rate credit card but I'm finding most places I buy my silver from don't take credit card or charge an extra % on top.
 
ThisIsJoe said:
thatguy said:
If you intend to pay back the loan purely with income and not the silver and or proceeds from the silver then yes go for it. But if the silver is part of the repayment plan then no, forget it
Click to expand...

That's the plan to pay the loan back only with income. That's why I thought it might work out.

CONSIDERING a low rate credit card but I'm finding most places I buy my silver from don't take credit card or charge an extra % on top.
Click to expand...

what if you got 2 credit cards... take a cash advance on the first one, then balance transfer at say 2.99% (or as low as possible) to the second? :)

edit: i personally wouldn't be doing that at this price.
 
thatguy said:
If you intend to pay back the loan purely with income and not the silver and or proceeds from the silver then yes go for it. But if the silver is part of the repayment plan then no, forget it
Click to expand...

Good advice.
 
Hi Joe,

Good question. I would advise you to go for it - provided that your loan term is more than 12 months.

Also, take a look at this thread where the same question was answered, a few months back:
http://forums.silverstackers.com/topic-5938-buying-silver-with-a-personal-loan.html

(In the above example BellInvest covered his interest in a very short time - and was soon talking about going back for more!)

I believe you will do very well.

Best Regards
Turk

(P.S. I have done this successfully with larger amounts already - and I'll soon be making a further VERY large purchases (with partial credit) over a further 12 months.)
 
Six months interest free on balance transfers. You don't actually need to have purchased anything with your existing card to recieve a balance transfer from a new account.

So I am told.

The house always wins
 
I highly advise it.

I have made great gains over the last few months. Have not looked back!

if YOU believe it will go much higher and the repayments are within your means then go for it.

Credit cards, personal loans, overdrafts there are plenty of option.

If you do take the dip look for flexibility.

Bellinvest
 
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