Would you ever take credit to buy bullion?

its like collectors bars, many like the receipts more than even the body metals
the price tag, on the old receipt can sell for more than the actual items, be it a machine, or a house or land
cash payment

it may work even with +10%, that does not stop there depending on the purchased loan amount as time drag on, and flat silver price ??
there in no guarantee in life
 
Bobhawke33 said:
Hi guys, I'm new to the forum but a stacker from way back.

I have a decent size collection of bullion that I have put together over the years. However, I have a friend that has just started, and seems impatient to achieve at a stack similar to mine.

He told me he is planning to take a personal loan out (from a bank) so probably over 10% per anum.

Am I the only one saying this is a bad idea or can anyone find some valid points for doing this?
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This is a stupid idea. Precious metals don't give a good return. They are an edge against inflation but are outperformed by pretty much every single other type of investment.

You don't want to lock money you could need on the short turn into precious metals because the second you buy you are at a loss with the premiums. For Gold it isn't so bad, say, 2% to 10% but with silver, some of the premiums are so
high you will never recoup them. Even if you go with low premiums on silver, you are still looking at about 7% on buy and 1% on sell. Add interest to that and it will take you a decade to break even!

What your friend should do is make a list of all he wants in his stack and buy as free money he is sure he won't need becomes available. That is the only way to stack.
 
The spread is what is preventing people from buying. Silver and pt has crazy spreads. But I see this as an advantage also because it means less speculation and the price is less inflated.

Why don't people buy pt even if the majority of people expect plat to be worth more than gold one day? It's because of the crazy spread. It took me sometime to get over the 6-7% spread I pay for pt.

Back to topic, pm is for wealth preservation. Credit is not your wealth.

Oh, I missed out VAT, which applies to silver and pt in many places.
 
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I have a few no interest cards I've used to buy bulk bullion. I find it easier to buy in one go and put a portion of my pay onto the balance weekly. Will pay it off by the end of the interest free period and cancel the cards, then find new ones. Worst case scenario I sell the metals and pay off the debt.

Definitely do not recommend it if your job is not secure or you can't discipline yourself to forgo a portion of your pay weekly. Would never do it on an interest bearing transaction.
 
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Another strategy similar to selling a car you dont use much, sell everything you dont use.
Most everyone has items that sit around for years in the house or garage and wont be used.
 
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