I am going to keep this short and sweet. I have only started saving in gold and silver since 2013, but it has been really exciting and I have learned
some new ways to legally get a good sum of it without myself actually having the money. How do I buy gold without having money??
use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable:
I use borrowed money. So right, I can see some of you nodding your heads now all like "dude thats a big risk, do you even make a profit, what about
interest charges??" and so on. All very valid points. Although I could apply for a new credit card with a promotional 0% interest rate, I could miss
key opportunities to get some of this metal at a bargain price during weekly, monthly, or quarterly dips waiting for an approval and then a card in
The very first time I did use a credit card back in 06. Chase gave me a 0% cash advance direct to my bank account that they treated as "balance
transfer". So I had no fees to pay, and the rate would be same as cash for 18 months. Thats one hell of a bargain. I took 4500$ and turned it into I
think six ounces of gold bullion. My First forray. I paid half of it down over the course of a year. By the time the rate was about to expire, I only
had like a thousand left to pay. So I just sold one to bring it down, and paid the remaining balance on my next check.
Five ounces left, and the following year ends up being a blessing. Yes the market tanked, and that sucks. We all felt it. But at least I was able to
see in my own hands the reward of taking this risk. I was intending to hold on forever, but when I saw that price finally hit $1500, I played it safe
and just sold them off knowing eventually it would go down. Of course now I see I could have gotten an extra $400 a piece out of it, but hey I still
more than doubled my initial investment.
So whatever, I did not really mess with gold too much again till 2013 when I figured it would be a great way for me to save without having to
accidentally spend it on groceries or a night out.
So I decided it would be better for me to go into fractional. Yes the premiums are higher, but they are easier to get consistently on a fixed income.
My local bullion dealer
still has the best price in town and online, but I need to pay cash t get the best
price. Credit cards and wire transfers add fees that negate any volume discounts so I ignored that. I always pay cash when I go to them.
I decided to try something new. Ebay. This is how I get my gold now. I like to buy
So I look for the lowest price and I also look for anyone offering volume discounts. Obviously you need to thoroughly vet the
merchants and see whether they are established with good feedback. I tend to notice the best prices and trusted sellers are coin dealers themselves
anyhow. SO I like to buy an ounce at a time, which with these means I am getting ten coins. I go with ten because it is usually where volume
I have an established bill me later so hers the process I do. Once I have selected the vendor and quantity I want, I purchase to lock in my price.
Then when I go to pay, I use Bill Me Later for an instant 6 months of 0% interest free same as cash financing through PayPal. I can pay the balance
down as I am comfortable, and as the "maturity date" draws near, I take whatever amount of coin I need and liquidate back to my local bullion dealer
to pay down the remaining balance, because they also pay the best as well as having the lowest prices.
By the end of the six months I will have no less than 5 coins usually, and sometimes I have them all. It just depends if I see a good sell opportunity
for some extra cash, or how much money I came across during the same time period to pay it down.
it is 100% legal, and encouraged by banks. I mean we are participating with borrowed money, and outstanding debt always looks good on their balance
sheets. It does not matter that I never paid any interest or fees, because they just need the money to constantly change hands anyways.
The great thing about Bill me Later, is that every purchase over a certain amount will qualify for the 0% financing. I could buy ten today, and ten
three months from now. I will still get six months on the latter, and have 3 months remaining on the former. I have now begun the process of building
time capsules for my kids that will have gold and silver in them (and maybe some lead
) for when they turn 18.
Its fun, and the children have even gained some knowledge and become interested in how finance works. My goal is to give them an even bigger head
start than my father gave me when it came to knowing how to manage money and "leverage" intelligently. There will always be risk, but I do this for
the long term, not for short term gain.
Prices are nice and low, so this is a good time to get started for those who have been on the fence. Remember, you are using your loan to acquire a
readily liquidated asset. Every pawn shop, coin dealer, and jewelry dealer in America will buy your gold. Every flea market will also have vendors to
do the same. And you can even barter with your fellow citizen.
Disclaimer: I am not a financial analyst, banker, stock broker or day trader, nor do I have any connections or ties to the finance industry. This is
just my method for acquiring gold for the long term without having to miss any good buying opportunities in the process of saving up, and wanted to
FYI, if you have the time it is good to also get into buying junk gold from people and process and refine it yourself to convert back to bullion. You
can resell the junk gold back to a refiner, but your capital yields will be much higher if you refine it first yourself into some much purer quality
I forgot to add that you can use the process to purchase coins from a foreign mint, but you may have to pay sales tax depending on your state, further
eating into your value.
edit on 15-12-2015 by AmericanRealist because: (no reason given)