Buy gold or silver on credit?

[Casey Jones]

CC debt is unsecured, easy to walk away from if necessary.

I can only speak for myself...but at the time I was behind the eight-ball, I was young...late thirties. I had hoped railroad work would provide stability (it didn't; it depends on whether the industry is in one of its periodical upheavals) and I wanted to look to buy a home.

First, paying off the debt, instead of slithering out of it, taught me a few things. Even though I paid it off with a settlement...I had the psychological instruction of being chained, and then liberated. So when I DID shop for a house, it was priced a third of what I could have qualified for. My house payment, including taxes, was $275 a month. Of course, deferred maintenance was on top of that...

But. I learned some important things. AND my credit was top-tier. I'm about 780 on the credit rating, even now with a low income.

Finally, there's the moral principle, that of paying back what you borrowed. Yeah, I know the banks are all run by crooks (didn't know it back then) but they did make the money available to me. I took it promising to pay back...in fact, I was laughing at the Sovereign Citizen movement, where these rubes discovered somehow that reading the Constitution upside down, showed that money was a fraud and thus, they didn't have to pay back real money when loaned fraudulent money. Or something like.

My age is showing...but I'm finding, now, that honesty and integrity are worth a lot, in terms of self-esteem.

 

[Joe King]

Do it, if you can afford it if it all goes South.

Thing is, when PM's get to such lofty levels, they typically don't stay there long.
....but if you really think "this time is different", which it may in fact be, it wouldn't be the worst idea that you are having.

If you do it, perhaps only do for half the amount you were considering. That way if it pays off you are still "in", and if it doesn't you won't have to eat as much.

 

[Fatrat]

Years ago credit card companies would send out those zero interest 1 year checks, wish I had one now.

 

[pmbug]

View attachment 17148

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

So it's been almost a week since I initiated my fantasy trade as outlined in the OP. The Bullionstar buy back price for the 9 kilos of silver is currently $15,867.72

If I had done the deal a week ago (as recorded in the spreadsheet above) and sold today and immediately paid off the credit card, I would have realized a profit of $300.96 less whatever interest accrued on the initial purchase in 6 days (around $35 if I did the math correctly). But if I had done the deal, I would not have sold today.

 

[nickndfl]

You can buy a.leveraged ETF, but never on credit.

 

[Bottom Feeder]

But if I had done the deal, I would not have sold today.

That's the sticker, right there.
You hang in there as it goes up and up, waiting for moar profit until it dumps. Then you have a bitch of a time selling it.

 

[pmbug]

... Then you have a bitch of a time selling it.

In this particular case, a decision to sell would be aided by the knowledge that the buy was a trade, not a stack. I would have debt to service and it eats into potential profit, so there is a time decay component. I expect silver to reach triple digits within a year or so, but probably would have sold the hypothetical position I constructed here when silver hits $60 or $70 depending upon how fast it happens.

Also, selling the stake back with the bullionstar vault account should be a no hassle, instant operation.