Where there's a will there's a way...

D

DrSilver

Member
I know some forum members don't have huge financial reserves to buy silver when they want, and often regret when a dip passes them by... Something I did on the last last dip (at $26ish) was to buy $10,000 worth on my credit card and then take up the balance transfer offer from ANZ to pay only %2.9 interest on it... As long as it is paid off within 18 months I cant think of too many ways to get a cheaper personal loan. It has already outperformed any interest I will have to pay in the next few months as I pay off the credit card and I got quite a bit more silver for my $...
DrJ
 
Dr Silver one would hope that you have the means to pay back this loan within 18 months, WITHOUT selling any of the metal.
 
Only issue there is to ensure that you aren't paying too big a premium for the credit card usage.

Most places I go that offer me a good deal, would not do the same deal on CC.
 
Captain Kookaburra said:
Only issue there is to ensure that you aren't paying too big a premium for the credit card usage.

Most places I go that offer me a good deal, would not do the same deal on CC.
Click to expand...

Generally you would pay about 2-2.5% premium for CC.
 
Agauholic said:
one may...

But we all hope he'll have the means to pay it off by just flippin a coin or two in 18mths
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I just worry about this strategy. Who's to say the spot price of silver won't be manipulated down by JPM/HSBC/<insert_villian_here> to <insert_low_value_here>?
 
Bit risky for my liking, how were you to know you picked the bottom? Transaction fees and interest would see you lose 7% immediately.
 
rbaggio said:
Agauholic said:
one may...

But we all hope he'll have the means to pay it off by just flippin a coin or two in 18mths
Click to expand...

I just worry about this strategy. Who's to say the spot price of silver won't be manipulated down by JPM/HSBC/<insert_villian_here> to <insert_low_value_here>?
Click to expand...

OP's method of-course comes with risks...

If you are happy with the risks...go for it... the OP was, and did well... kudos.

Gotta be in the game to.....
 
Good move Dr.
Bear in mind that upon expiry of the 18 month promotional period the applicable interest rate will be at least 20% pa !!
So make sure you have the fiat to cover the account prior to expiry or to sell the stack and pay anz.
 
Buying $10,000 worth of metal with or without a 2.9% carries risk. To be honest, 2.9% over a year is $290 or $6 a week so hardly a consideration really.
 
Matthew 26:14 said:
Buying $10,000 worth of metal with or without a 2.9% carries risk. To be honest, 2.9% over a year is $290 or $6 a week so hardly a consideration really.
Click to expand...

Oooh how i would love to bear some of that risk - 2.9% over 18mnths on silver
 
I started buying silver when it was $11 bucks an ounce and seem to have hit a mental block at paying more than $30 an ounce... Figured $26 was pretty close to the bottom of the last dip and this was a quick way to get hold of some more bullion before it went up again... The credit card only has the cheap interest rate on balances transferred so no further use for the card other than to pay it off... There will be risks with any investment but you have to stick your neck out occasionally to get ahead... I figure not a big risk, certainly not in the league of stock, margin loans etc in the 1920's...
 
Good luck to you Dr.Silver! but I'm always wondering about bank offers such as that one you have entered into. Remember, those rates are calculated, cross calculated, analyze, construe, enciphered by crafty bank accountants & marketing gurus tempting guys like you and me into that 18 month contract knowing dam well that only a small % are likely to be able to pay the principle + interest off in the due date. But over all, you have to think out of the box to get ahead isn't that why we are all on this forum?
 
"Where there's a will there's a way..."


Where there's a will there's usually a bunch of relatives....
 
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