Taking out a personal loan to invest in Gold

Geoff23

thenudeone wrote: »

It's completely and utterly bonkers. No matter what happens to the price of gold you will be stuck with a loan the same size as you started with; plus interest.

Of course many people do essentially the same with property when they buy a house with a mortgage, but then they are using the asset to live in and saving substantial sums in rent. Even if you're buying a buy-to-let property with a mortgage there is a reasonable chance of getting sufficient rental income to cover costs, so you're not reliant on asset appreciation for the return.

Perhaps some of this is required:

With respect, "Troll" usually refers to a person who comes to a message board with the primary motive of causing trouble and no interest in changing their mind about anything. Asking what may seem to you to be a rather silly question isn't really "trolling", IMO. It would become trolling if the answer is ignored and then asked again next week!

purch

a long term investment in Gold for 5 years

For Gold, a term of just 5 years would represent a very short term investment.

The value of Gold is measured over decades, not years.

newDude

So, not a good time to buy gold then? I've come by some money, and was going to buy Gold..i guess it'll be some BTL places then. I recon i could buy 5 £100K properties with 30% down on each :money:

Lokolo

newDude wrote: »

So, not a good time to buy gold then? I've come by some money, and was going to buy Gold..i guess it'll be some BTL places then. I recon i could buy 5 £100K properties with 30% down on each :money:

Eggs, 1 basket.

thenudeone

Geoff23 wrote: »

Asking what may seem to you to be a rather silly question isn't really "trolling", IMO. It would become trolling if the answer is ignored and then asked again next week!

Yes I was probably a bit harsh.

Geoff23

newDude wrote: »

So, not a good time to buy gold then? I've come by some money, and was going to buy Gold..i guess it'll be some BTL places then.

I don't recall anybody saying that. It was suggested that it wasn't a good idea to take out a loan in order to buy gold...and that probably wouldn't be a good idea at any time.

Now is a very good time to buy gold, IMO, but only if you have some "spare" cash. Get out of debt first.

pqrdef

atush wrote: »

But to borrow money to invest is pretty darn STUPID.

Borrowing to speculate - isn't that what banks do?

purch

yeah.......but they don't have to pay it all back :eek:

MoneySaverLog

pqrdef wrote: »

Borrowing to speculate - isn't that what banks do?

Yes and that was what got them into trouble in the first place :eek:

Borrowing money to buy gold now I've heard it all. Overpriced yellow bricks in my opinion that have no real practical use whatsoever.

atush

pqrdef wrote: »

Borrowing to speculate - isn't that what banks do?

And some like NR that did it no longer exist?

Pretty darn Stupid- unless you are RBS and the govt bails you out. The govt isn't going to bail out the OP.

businesses can leverage if they want- they tend to be limited companies.