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How I use Leverage to Own Physical Gold, and You Can Too!

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posted on Dec, 15 2015 @ 12:37 AM
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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??

VERB

(leveraged)
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 mail.

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 1/10 ounce gold eagles. 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 discounting begins.

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 share it.

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 small ingots.

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)




posted on Dec, 15 2015 @ 12:48 AM
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The federal reserve put the breaks on inflation so unless your doing this in preparation for the apocalypse I would figure out a new way to try and make money because the value of precious metals is going to drop due to the dollar increasing in value over the next few years.

Stock prices will probably continue to climb for the same reason.

Put your money in cost co they are great. Your money will actually produce a value for you there.
edit on 12/15/2015 by onequestion because: (no reason given)



posted on Dec, 15 2015 @ 12:55 AM
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a reply to: onequestion

No thank you I have an IRA with Meryl Lynch for messing with the Casinos in New York/London/Hong Kong/Singapore etc etc.
This is strictly for owning actual wealth in my bare hands. I am not a speculator, and I did also make that clear that I am in it for the long term. I dont sell my gold when I see a $20 increase. I literally just stash it away. Some it may get sold if a really favorable price turns up, but mostly this for my childrens future and financial stability. History has shown me even just twenty years of saving gold can give my kids a debt free foot into an institution of higher learning than the poor bastards who end up unemployed after getting a degree and owe more than the cost of a house.



posted on Dec, 15 2015 @ 12:56 AM
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a reply to: AmericanRealist

I agree with your perspective then!

I was hoping you weren't falling for the "BUY GOLD NOW" craze



posted on Dec, 15 2015 @ 01:04 AM
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To bad you can't eat gold. It's also heavy, so if your home is destroyed by natural disaster or you need to bug out, it'll be a PITA to carry a bunch of gold around.

Also, if the "end of the world" happened, who's going to trade you their food for gold? Food keeps you alive, gasoline powers generators. Gold just looks pretty.

Having a skill like knowing how to care for injured and sick people, building things, fixing things, hunting and whatnot -- those are skills you can trade for the necessities to survive.

You'd have to be doing quite the volume of gold trading to really make any money it seems...I think silver might be more fun, you can buy more actual coins and play around with collecting different ones that way.



posted on Dec, 15 2015 @ 01:13 AM
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At first I felt like this was one of those ads that disguise themselves as actual topics or news (like in the recent south park episodes lol)

I can see this idea working for the long term. Good for you and I hope it continues to pay off



posted on Dec, 15 2015 @ 01:15 AM
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a reply to: AmericanRealist

I was a licensed commodities broker years ago. I wouldn't offer investing advice, but I will say using debt to purchase potentially volatile commodities is a very good way to get yourself in trouble. The way the markets have been behaving in the past couple years isn't a good barometer for which way the winds are blowing.

If you're going to speculate gold prices I hope you're looking at it like gambling and only do it if you can afford the consequences. Commodities firms have whole departments full of financial experts and not even they get it right all the time.

Have fun with it, but be careful because it will turn.

ETA: I see since I started my response you elaborated further and you're not speculating. I'm glad.
edit on 12/15/15 by Ksihkehe because: (no reason given)



posted on Dec, 15 2015 @ 01:17 AM
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a reply to: MystikMushroom

Well M&M, any and every leader of a centralized power structure, from the existing government, even down to lowly raiding parties of bandits, is always open to accepting humanit'y time and again default currency. I could lug five pounds of gold easier than 30 pounds of food, or a hundred pounds of ammo. Mind you, anyone has has even five pounds of gold would be #ing wealthy as heck to begin with. Your average Joe typically has under 1 pound. That is like putting on an extra pair of sneakers, not a big deal.

I also dabble in silver and enjoy it very much. In fact one of my hobbies is to visit coin shops whenever I see them and look through their "Foreign Money" which is usually on discount to begin with. Every now and then I can find some cheap silver coins in there too. EVERY coin dealer I have ever dealt with has always waived tax when I pay cash (is there really any other way) .

It will be easy to find the people who accept gold in a SHTF scenario. Typically it will be the people who have established their zone of influence in a given pocket of a population or town. If thee are bandits working for someone, its a safe bet that leader is accepting gold, as they are likely not too hungry or in dire straits.

There is a reason why we all use paper, while the governments and banks that run the world trade their gold. People in power use gold. Gold will command a level of respect just as it always have and will throughout human history.

You can choose to work your way towards that power through the acquisition of wealth, or be a commoner playing with pretend money hoping it does not tear when it becomes damp and soiled. There also no reason why a commoner should not store his own wealth in this form.



posted on Dec, 15 2015 @ 01:21 AM
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a reply to: Ksihkehe

I did cover that and am fully aware of the risks. I would say at this time my risk exposure is rather minimal, and am more than covered for any "oops thats not where I wanted to see it go" months. Once again, I buy gold for the long term. I dont need speculators advice, I am not a speculator. I am in this for the long term.



posted on Dec, 15 2015 @ 01:28 AM
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a reply to: AmericanRealist

Well if you showed up in a SHTF situation with your gold, and wanted some of my limited food -- I'd probably tell you no. The food will keep me alive, the gold won't. If you have some kind of useful product, bullets, gasoline, first aid supplies, batteries, fresh eggs, fresh meet ect...I might barter with you for some of my food.



posted on Dec, 15 2015 @ 01:29 AM
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Dang first to flag......global fundamentals and Wednesday's FOMC ....say buy a dip after fading in longs....keeping margin.....stop down at 1031.....

I go out and dig for it too......did you know they're outlawing metal detectors....in western Colorado.


edit on 15-12-2015 by GBP/JPY because: A



posted on Dec, 15 2015 @ 01:55 AM
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a reply to: AmericanRealist


Canadian Maples contain more gold. If you can keep from pawing them all the time (as some numismatists claim Maples scratch easier), it might not hurt to diversify.



posted on Dec, 15 2015 @ 02:21 AM
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a reply to: AmericanRealist

How I use Leverage to Own Physical Gold, and You Can Too!

I recommend all readers trawl through Paul Craig Roberts site and find his article on how the TPTSNB deliberately, and to date successfully, suppress the price of gold and keep it below $1500 or $1100 whatever it is, per ounce.

PCR explains it all in an nice easy to read and follow but more importantly, in a way that enables one to understand it.

I wont try and explain it here because I just cannot do justice to the reader by doing that.

read it people, you will not regret it.



posted on Dec, 15 2015 @ 02:22 AM
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originally posted by: MystikMushroom
To bad you can't eat gold. It's also heavy, so if your home is destroyed by natural disaster or you need to bug out, it'll be a PITA to carry a bunch of gold around.




10 pounds of gold is pretty light and quite valuable

edit on 15-12-2015 by Vector99 because: (no reason given)

edit on 15-12-2015 by Vector99 because: (no reason given)



posted on Dec, 15 2015 @ 03:24 AM
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a reply to: Azureblue

I'm not going to read it because it is of no importance to me, my stance on this is the same as MystikMushroom.

But, however my guess is that it is the same old trick, leverage.
Have a coin in the vault, sell this coin about 20 times in the form of paper.
And of course the bank is happy to keep 'your' gold safe in their vault for you, at a fee of course.
Also there is a gap between the purchase and selling price, after all, the goldsmith wants to make money to on selling gold to a buyer.
That is the first loss to make up for, furthermore one should be wary that gold is not a hedge against inflation, this should be very clear after the collapse of the gold price since 2011.
The price is simply driven by demand, less demand? the price will drop.



posted on Dec, 15 2015 @ 03:37 AM
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Everytime I think about investing in gold, I remember this...

Very powerful forces are working hard...very hard...to acquire all the wealth. There doesn't seem to be anything that you can really own without it owning you. Frankly, the average person doesn't stand much of chance.
edit on 12/15/2015 by ~Lucidity because: (no reason given)



posted on Dec, 15 2015 @ 03:39 AM
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a reply to: ~Lucidity

Good post.

Learn a valuable skill like growing food
edit on 12/15/2015 by onequestion because: (no reason given)



posted on Dec, 15 2015 @ 03:56 AM
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originally posted by: GBP/JPY
Dang first to flag......global fundamentals and Wednesday's FOMC ....say buy a dip after fading in longs....keeping margin.....stop down at 1031.....

I go out and dig for it too......did you know they're outlawing metal detectors....in western Colorado.


Would be interesting to see a source for what you say about metal detectors... ...



posted on Dec, 15 2015 @ 04:05 AM
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originally posted by: MystikMushroom
a reply to: AmericanRealist

Well if you showed up in a SHTF situation with your gold, and wanted some of my limited food -- I'd probably tell you no. The food will keep me alive, the gold won't. If you have some kind of useful product, bullets, gasoline, first aid supplies, batteries, fresh eggs, fresh meet ect...I might barter with you for some of my food.


But this is not how it works, in a desperate situation the top of the chain of food supply, and whatever else you will need, is going to trade goods for something representing wealth and undoubtly gold and silver will be more representative than paper money. Your example might work in a zombie apocalypse situation rather than a real world economic collapse.

However gold imho is still a bit overvalued compared to other commodities and there is still some time before the dollar is going to get dumped. Indicators are China's UST amount and Comex reserves. If China's strategy is crashing the COMEX and LBMA (which is entirely possible) it won't happen overnight until China has dumped another trillion and until they can ensure there will be not enough deliverable gold on contracts they bought through 3rd parties.
We'll probably see gold going down to 900sh due to stronger dollar and fake demand by central banks gold swaps, and another big turning point might be the investigation of UBS about rigging the gold market that should end in 2017.

Just my 2c, don't take any of my comments as an investor's suggestion



posted on Dec, 15 2015 @ 08:13 AM
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I remember when I was a kid my dad had a jewelry store in the early 80s.

He would advertise buying gold at his store. Then he'd take the junk and melt it down to sell.

I remembered going and seeing the prices of gold at the place we would sell to.

All very neat.



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