Buy gold or silver on credit?

I've got some high conviction that gold and silver are both headed much higher from now through 2026 barring WW3 (gold would still do well) or a global economic depression (ugly for everything).

I've got a CC with a ~13.5% APR (variable with prime rate) and 5 figures of credit limit (available) on it. I'm considering opening a storage account with bullionstar.us and buying some low spread LGD silver or low spread gold for a short term (less than 1 year) gamble on turning a profit.

Bullionstar.us does not charge any storage fees for the first 12 months after you open an account, so it seems like it should be easy money. Thoughts?

Bad idea

pmbug said:

I've got some high conviction that gold and silver are both headed much higher from now through 2026 barring WW3 (gold would still do well) or a global economic depression (ugly for everything).

I've got a CC with a ~13.5% APR (variable with prime rate) and 5 figures of credit limit (available) on it. I'm considering opening a storage account with bullionstar.us and buying some low spread LGD silver or low spread gold for a short term (less than 1 year) gamble on turning a profit.

Bullionstar.us does not charge any storage fees for the first 12 months after you open an account, so it seems like it should be easy money. Thoughts?

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Sneek around to the AirBnB tonight. I bet there is a lot of cash there you can borrow.

13.5% feels pretty steep to me. I have an opportunity to get ~7% money and still uneasy about it heh.

But hey, speculative attack on the dollar let's go?!

Don't do it.

No too complicated. Sell something to free up cash. Looks.like Ag is about to breakout, especially the miners.

I would run away from that "deal"...

But that's just me....

No, hell no...

I would not. Hate borrowing money.

Is the, unh, verdict in?

Maybe I'll track the results of a hypothetical trade on paper (spreadsheet actually) and weep if it turns out I missed on easy money.

I'll update it periodically (or at least when I think I would have exited the trade come profit or loss).

Would you borrow money to buy a stock or a lottery ticket?

Bullionstar lists the silver kilo bars at a 9.65% premium to spot. At $50/ozt spot, their buy price should be $15,864 which would represent a trade profit of $297.34 and a net profit (less CC interest) of $122 if it happened by the end of the month (October). If silver breaks $50 spot and runs to ~$80 or so as many pundits have been speculating could happen (there isn't much resistance after $50 apparently), that would be gravy. I think there is a good chance that happens before the end of the year.

If I were going to do it myself, I'd look at what I could make the most money with in the shortest time, then get in and as soon as I had a nice profit I'd get out. jm2c

IF silver went to $80 by January there would need to be a huge deficit of physical and instutions with the money to buy.it. It is unlikely we will do more than a few dollars either way until January?

Well, we'll see. That's the gamble. I think silver rips faces by the end of the year. I could be wrong though.

On the other hand, if the dollar is going to collapse soon, this might be a great idea...

pmbug said:

I've got some high conviction that gold and silver are both headed much higher from now through 2026 barring WW3 (gold would still do well) or a global economic depression (ugly for everything).

I've got a CC with a ~13.5% APR (variable with prime rate) and 5 figures of credit limit (available) on it. I'm considering opening a storage account with bullionstar.us and buying some low spread LGD silver or low spread gold for a short term (less than 1 year) gamble on turning a profit.

Bullionstar.us does not charge any storage fees for the first 12 months after you open an account, so it seems like it should be easy money. Thoughts?

Click to expand...

Boy Bloomberg and all those central banks really changed the world didn't they ? I think things will never be the same.

My small bullion dealer told me yesterday they can barely keep stock in a day. The only gold he had was a single pre-33 coin and a single 1/2 liberty. He had some bullion coins but not a lot and a few MSD's but years mostly for numismatics. He can get metal but he just can't hold onto it. The only real play you have with his are 1 oz MSD replica rounds he's getting $50 apiece for, which is fair, considering.

I bought a 2026 gold Britt today for $3,968. Which is fair, considering I must be nuts, and I'm gunning for a gold liberty. I found a 10oz RCM Bar, which wasn't easy. So my thought are that as long as you dont get buried after 12 mos then why not? I dont think gold is done. I'd bet its going to end up $100 but WTF do I know? Just make sure you have the cash to make good the balance. Remember ? Nothings free, at least for taxpayers.

in my humble opinion that would be the worst way to gamble/leverage silver.......if you want/must to put credit to work consider using credit in a brokerage margin account and buy a 3x silver long etf ....not recommending it just saying if you gotta use credit use it wisely

I would go long on AGQ or buy call options if I had such convictions that silver will moonshot by January.

pmbug said:

Bullionstar lists the silver kilo bars at a 9.65% premium to spot. At $50/ozt spot, their buy price should be $15,864 which would represent a trade profit of $297.34 and a net profit (less CC interest) of $122 if it happened by the end of the month (October). If silver breaks $50 spot and runs to ~$80 or so as many pundits have been speculating could happen (there isn't much resistance after $50 apparently), that would be gravy. I think there is a good chance that happens before the end of the year.

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personally i see 50$ silver as a strong resistance point similar to how 30$ was (hope i am wrong)

if i had to do your plan i would probably look hard at buying on ebay (cc) via a listling like this one there are several that are trusted sellers that also offer volume discounts etc in the same price range https://www.ebay.com/itm/297325569122?_skw=kilo+silver+-half+-1/2+-shot+-grain+-Empty+-box+-coppper+-brass&hash=item4539fc2462:g:udkAAeSwDWto2pY~&mkevt=1&mkcid=1&mkrid=711-53200-19255-0&campid=5338203137&customid=&toolid=10049&customid=product162

Everybody knows silver will break $50 at some point and then fluctuate. By definition a triple top at $50 would be bearish, therefore expect $50+ because there is too much government spending and not enough metals to go around at current prices.

Also expect a drop after 50 or maybe sideways to consolidate before gold.leads silver up again.

The sad thing is everybody rushing to sell their metals at what they think is a top will be scrambling to buy it back at much higher prices in the future because dollars and digits are an illusion.

nickndfl said:

Everybody knows silver will break $50 at some time and then fluctuate. By definition a triple top at $50 would be bearish, therefore expect $50+ because there is too much government spending and not enough of metals to go around at current prices.

Also expect a drop after 50 or maybe sideways to consolidate before gold.leads silver up again.

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part of what i am saying is if your going to do high risk buying (high intrest CC funding) i would want to not do it right before a proven resistance level ....i would wait till it at minimum closes a week above 50 to buy the next leg....... i wouldnt want to be caught paying intrest while a price is banging its head on the long term ceiling for who knows how long

fwiw i do highly value Andy Sectmans opinion highly (above video)

Ttazzman said:

... you want/must to put credit to work consider using credit in a brokerage margin account and buy a 3x silver long etf ....

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nickndfl said:

I would go long on AGQ or buy call options if I had such convictions that silver will moonshot by January.

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Thanks but the idea was how to put some unused credit card credit to work. Can't really use a CC with brokerage account AFAIK.

Ttazzman said:

...if i had to do your plan i would probably look hard at buying on ebay (cc) ...

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I looked at using the bullionstar account because it offers a guaranteed low buy/sell spread (zero spread if you are a big enough spender) and no hassle sell back/instant liquidation. Buying physical from a dealer whether eBay, LCS or online dealer carries more risks and headaches when it's time to liquidate.

Ttazzman said:

...part of what i am saying is if your going to do high risk buying (high intrest CC funding) i would want to not do it right before a proven resistance level ...

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I hear you there. I'm thinking 50 will only hold for a week or so. I think we are too close to seeing a physical supply shock when the LBMA runs out of free float.

This has been a great bull run. The strongest any of us have ever seen and may ever see for the rest of our lives. Right now we see people coming out of the wood work to buy. People contemplating taking out HELOC's to buy (Myself included). So I asked myself a couple questions.
I said self, is this bull market normal? I said nope, definitely not normal. Whats driving it? Mostly bankers and sovereigns. Probably some hedgies as well. Can this break 50? (Thats really the biggest question out there that needs to be answered) Not sure. Some pretty strong resistance there. If it does it will break it and then retest it as support. If it holds as support then that would be the time to buy IMO. What is upside potential versus downside risk right now. Martin Armstrong says 70 by 2032. Not all that great a reward unless of course he is wrong and we go to 70 next year. The downside risk is this bull market comes to an end or worse, the government declare silver a strategic metal and doesn't allow it to trade to the public anymore. Governments can buy up all silver at whatever price they set with the producers to keep them mining and the rest of us won't be able to play.
We saw today how quickly this can drop. I actually didn't expect it to recover like it did but that doesn't mean this won't go to mid 30's by the end of the month. It could do that as easily as mid 70's.
I am actually trying to decide if I want to unload a little bit. Past performance is no indication of future performance but in the past, whenever we have hit 50 we reversed and went back down to the teens or 20's. I don't think we will go back that low but upper 20's to low 30's would still be higher lows long term. Not out of the range of possibilities.
One last observation is the miners have not kept up with this move. They are moving but they should be about 100% higher at least with the metals as high as they are right now. Seems like a huge opportunity there if this bull market is supposed to continue. If I see it then the big players do as well. Since they are not moving on it I have serious doubts.
I still haven't made a decision but I am leaning towards taking some off the table.