Buy gold or silver on credit?

[pmbug]

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?

 

[foolsgold]

Bad idea

 

[Viking]

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?

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

 

[ewinslow]

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?!

 

[Bottom Feeder]

Don't do it.

 

[nickndfl]

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

 

[Goldhedge]

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

But that's just me....

 

[Fatrat]

No, hell no...

 

[Wellsburg]

I would not. Hate borrowing money.

 

[Bottom Feeder]

Is the, unh, verdict in?

 

[pmbug]

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.

 

[pmbug]

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

 

[searcher]

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

 

[pmbug]

 

[pmbug]

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.

 

[searcher]

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

 

[nickndfl]

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?

 

[pmbug]

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

 

[Fatrat]

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

 

[SilverStacker]

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?

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.

 

[Viking]

 

[Ttazzman]

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

 

[Viking]

 

[nickndfl]

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

 

[Ttazzman]

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.

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

 

[nickndfl]

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.

 

[Ttazzman]

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.

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)

 

[pmbug]

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

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

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.

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

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.

...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 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.

 

[Cigarlover]

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.

 

[pmbug]

...
I said self, is this bull market normal? ...

The biggest difference between this bull and the ones before it is that this bull is being driven by physical demand and not paper trading/speculation. There is no way, IMO, silver returns to the 30s unless China and India stop buying. China is actually experiencing a retail physical shortage right now - they need more silver to satisfy domestic demand. As I touched on in the OP, the only situations that would meaningfully stop silver's run would be global economic depression (CBs won't let it happen - they'll brrrt until the machines break) or WW3 (definite risk there) - both of which would likely significantly curtail industrial demand for solar and EV batteries.

I really don't think people fully grok just how thin the free float supply stock is in the major exchanges right now. The reason the dips are so shallow and short lived lately is that the shorts do not have physical reserves to whip the buying demand that is taking delivery of physical. We're very close to seeing an epic silversqueeze. $0.02 FWIW.

 

[Cigarlover]

WW3 Is next year. Not so far off. I do think we could hit low 60's before it kicks off though. Martin said that China has already said there is no beating Russia. They won't let it happen. They know if Russia falls they are next.

I think you are probably correct. Just playing the other side and throwing out all possibilities. We know they can settle contracts in cash when silver is unavailable. Whats to stop JPM from just shorting 2-5 billion ounces. If they get short squeezed they just go to the US Gov for more money. To big to fail and all that.. With the massive amount of buying going on why would they short at all? Why not just join in the buying frenzy and make gazillions for themselves?

 

[pmbug]

I think once word gets out that paper markets are defaulting on deliveries - which is what happens in your JPM "shorts to infinity" scenario, everyone leaves the futures markets and they break down. Physical (spot) markets will take over and a true price discovery silversqueeze happens. JPM can't stop the inevitable because we are already too close to the event horizon and the demand they would be trying to tamp down isn't weak handed speculative investors - it's real industrial demand.

 

[pmbug]

I should add - we're already starting to see backwardation where the spot markets are overtaking the futures:

Post in thread '2025 Lunatic Fringe - Market and Trade Chat'

Oct 3, 2025

silversqueeze getting closer...

• pmbug

Rock beats paper.

Post in thread '"Historical" quotes on gold, silver and sound money'

Sep 6, 2025

• pmbug

 

[Cigarlover]

If I get a HELOC I can add 6000 ounces. Very tempting. LOL. You convinced me not to sell any. I also keep forgetting I have a bunch of Cuban cigars that are up 400% in the last 5 years. Selling some of them instead.

 

[Ttazzman]

One thing that feels so different about this run is that it's global, and that is a component we haven't dealt with before

 

[SilverStacker]

One thing that feels so different about this run is that it's global, and that is a component we haven't dealt with before

Not just that but the weakness in fiat currencys are global too. Even the mighty $USD which basically sets the tone for the world. And the tone right now is sour. Trump has few options. He inherited a mess and if he wants to spur exports and Industrial output he has to keep the dollar affordable.

And thats another thing. Every time in this run when silver sets a mark it holds it for awhile before moving up. That indicates strong demand and weak supply. Lastly, and most importantly, with other Bull runs silver was not so openly defined as a critical mineral as it is today which means America is going to import huge reserves of it and probably already has as well as gold. And Ive never seen such a bull run also associated with such a weak $USD.

I was at the grocer today. Its like using Monopoly money. Little guys like us are nervous and buying the stuff by the tonnage.

 

[Casey Jones]

Thoughts?

Bad thoughts.

Debt...makes you a SLAVE. Consider where I was, seventeen years ago, with where many GenX types (mid- forties, the age I was) at the time.

Yeah, my world was up-ended. My ideal job, that I'd had for ten years...working for the railroad, Conrail...had become a mind-pfuk hellscape. We'd been taken over by our competitors - the two big Eastern railroads, CSX and Norfolk Southern, had bought it and divided it.

That mattered. Long story...it had gotten ugly. It was time to go. I wasn't in debt; I had savings. Instead of taking a beating, Thank-You-Sir-May-I-Have-Another, I channeled Johnny Paycheck, and told them to pound salt up the waste stack. This, after getting the Company Motivational Speech: "This ain't Con-Rail no more, boy. We gon' fire y'all."

I walked away, and...while it didn't make life easier (three months before the GFC; and a period of Last-On-First-Off jobs) it did give me the option.

About five times I had that choice.

Ten years earlier, as I was hired for Conrail, I was carrying $10k in credit-card debt. It would be about $25k in today's fiat. Wasn't BS spending; it was living in a high-cost urban area with a job that had once paid well, but the wages didn't rise with the rent. So, three years, about $5k in the red - and all that vigorish, stacks up fast. To ten thousand, and climbing.

An underhanded gift from the gods - I got hurt on the job, no fault of my own, and got a $10k settlement from Conrail. That had me absolutely free and clear of debt. I drove an old minivan, which was completely what I needed; I was working 72-80 hours a week, so I didn't care what I looked like tooling around. No time to party, play, drink or otherwise waste money.

Liberation doesn't begin to describe it.

When you are saving for something, and bad things happen - like a layoff - well, you just stop saving. When you're paying a heavy mortgage and a car note, and you're cut off...the repo man and the Sheriff come to do their things, real fast. You CAN NOT STOP servicing that debt...even though there's no guarantee that your income stream will not be interrupted.

I say, DO NOT DO IT. In a practical sense, you'd be in the same sort of place that margin-buyers of various stawk products were in, in the 1930s, or the Dot-Com Bust, or the GFC. You may miss opportunities. That's unfortunate; but that is NOT devastating. Not like missing a ball when you'e juggling debt.

 

[Viking]

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

 

[SilverStacker]

Using a CC has made me nervous for the last 30 years or so since I paid them off and said "enough of this shiite". I told the old Lady she's on her own with them, which caused her to end the nonsense cause I got tired of paying hers off.

Now using their money to buy gold is another thing as long as you don't lose the Hunger Games and can pay them off before the years ends. The way Tony Soprano thinks maybe 2 out of 10, if not more, wont be able to and they will be left with a compounding debt they will never be able to pay off other then making interest payments. So they can't lose. I think were going to have a bad jobs report coming up and other economic troubles. And tho everything is different for everyone I'd probably shy away from using those damn CC's.

But right now the only investment I'd put on equal footing with gold and silver is maybe real estate.

 

[Cigarlover]

The value of the dollar is one thing that will kill this rally. I know trump and his administration want a weal dollar so we can export more. Good for business but bad for US citizens. However, his plan to bring manufacturing back in my opinion will be lackluster at best. What company really wants to build new factories in the US when the political climate can change in 3 more years? Are we really going to compete with China and the rest of SE Asia when they can pay labor so little and not have to pay into benefits and SS?

When WW3 kicks off there is a shit ton off money from all over the world that will come to the US to be parked for safety. This will drive the dollar higher as well as the DOW and real estate. Thats why I think AG can move up into the 60's for now and maybe even higher with a blow off top. Thats my thesis anyway.