Gold and silver prices have been on the increase for many months and this is no surprise to Gerald Celente, the CEO of Trends Research Institute, business consultant and publisher of the Trends Journal.
This “Trends Expert” stated that gold and silver prices would continuously increase almost two years ago. As CNN Headline News stated, “When CNN wants to know about the Top Trends, we ask Gerald Celente.” As per usual, Gerald Celente called it right.
Many financial experts are stating that gold and silver demands will continue to be high for quite some time to come. According to the vice president of the RBC Capital Markets Global Futures George Gero, he stated at Forbes.com that worries about the US debt and tensions in the Middle East are a couple of reasons why investors like to turn to gold.
As of the posting of this blog, gold was $1548 per ounce and silver was $36.21 per ounce. Compare that to one year ago, gold was about $1200 per ounce and silver was $18.50 per ounce.
So investing in gold and silver is still proving to be profitable.
Do you want to invest in gold or silver but do not have the cash flow you need to purchase what you want? Are those credit cards getting more and more tempting to use for this investment? Should you use your credit card to buy gold or silver?
Let’s look at the pros and cons of using a credit card to buy gold or silver.
If you have very little or no credit card debt then expanding your portfolio can be profitable however, it is crucial to remember that purchasing gold and silver is speculative.
The total amount you borrow on your card should be an amount you can circumvent with ease and get out of should gold and silver prices drop.
Bottom line, anything can happen and the price of these metals can drop at any given time. If you do not watch the markets on a daily basis and have very little or no knowledge about investing, then this is something to avoid.
Temptation to invest is huge but if your cash flow just isn’t there right now and you have no means in the foreseeable future to cover the cost of investing, then this too is something to avoid.
Now for the credit cards; they are tempting indeed.
Again, if you have a low to no cash flow then you really should speak to a financial advisor to make sure the move you make is a smart one (odds are the answer is no).
You may end spending a whole lot more money on paying interest than what a possible investment may be worth. An investment can be risky business.
Once you have weighed all the pros and cons and have sought the advice of a financial expert and want to make that step, then be sure your credit card offers you benefits.
If you have cash that you can apply to a credit card purchase of gold and silver then you may come out even further ahead than you originally thought. Just remember, if you aren’t debt free on your credit card then you risk losing on your investment AND you may be paying interest on your purchase.
One thing is certain though, it is risky and every option must be weighed first before taking that plunge.