Before the era of cryptocurrencies, real estate, and stock exchange market, precious metals were considered an ideal investment option here in Singapore. Buying gold, silver, or other precious metals can be categorized as a stable investment. This is because unlike the stock market or cryptocurrencies, the price of these precious metals in most scenarios always goes up. During the eras of financial uncertainty, gold can and silver can guarantee exceptional profit margins.
Are you interested in investing in gold or silver? Wondering if a personal loan could help you kick start your investment. Here is a guide on whether it is advisable to use personal loans in Singapore to buy gold/silver or other precious metals.
Purchasing Gold and Silver Using Personal Loans
Similar to other types of investments, a personal loan SG can help you buy precious metals if you do not have the money to kick start your venture. The idea here is, you need to find the best personal loan in Singapore with the lowest interest and buy the gold or silver. You will hold on to its possession for a while till the prices of the metals go up. Later on, you can sell them at a higher rate.
Using a personal loan to invest in precious metals is an excellent strategy provided the increase in price rates is higher than the loans interest rate. You can go ahead and pursue this investment if you can be assured of getting a low-interest personal loan SG. If you have got good credit and positive payment history, then you have got nothing to worry about.
However, when you approach this kind of investment, you should keep your options open. At times, the price of precious metals may remain stagnant or go down due to the market influx. This is a risk for potential investors. Fortunately for you, different kinds of precious metals vary when it comes to an increase in price rates and holding powers. Metals such as rubies, gold, and silver have seen a favorable increase rate here in Singapore in the past few decades. Familiarizing yourself with these trends allow you to explore your investing options.
Compare Personal Loan SG Interest Rates to Increasing Value of Precious Metals
Here in Singapore, personal loans attract low-interest rates of 4% going upwards. Therefore, before you should compare the interest rate, you can get for a secured or unsecured loan to the increasing value of metals. For instance, gold in the last year had an increment value of 8%. In the past three years, it has increased by 13% whereas silver in the past year expanded in value by 6%.
Are There Good Returns When Investing in Precious Metals?
Before you decide to take a personal loan in Singapore, you need to do your math. You should assume that you had taken a personal loan in 2017 at a particular interest and bough gold or silver. You would have then sold it later in 2018 when the prices increased. From the figures, you should calculate if you would have made any returns from your investment.
The good news is, precious metals aren’t a perishable kind of investment. When you buy a gold bar today, you could sell it even in the next twenty years and make abnormal returns. A personal loan can help you invest in gold and silver, as well as other precious metals. Make sure you understand the value of the metal you wish to invest in before getting a personal loan in Singapore.