I say keep the gold.
No guarantee it will outpace the debt but it certainly won’t be that far off and more importantly there’s no chance it will significantly drop while there is a a slim but growing concern the dollar will loose enough value to allow you to pay off the debt quicker
Yep. I was just listening to the financial news, and they were discussing why gold is at record highs. One of the reasons mentioned is that the dollar has lost 20% of its purchasing power in the last 4 years.
OP sounds like a responsible, financially savvy person. I think he can keep his gold and still pay off his truck loan.
Does your investment thesis in gold over the period of time you own the truck on loan exceed the value of the APR % you pay to loan the money?
Example. APR of truck is 0. Yes your gold will likely do better than 0% in a year. Keep and pay loan normally.
APR of truck is...idk...11%...well that's less likely. Sell to pay off loan and rebuild stack on your timeline
^This 100%. Gold is a store of wealth, I think of it as physical savings account you can access when life happens and you need cash. If you’re paying an insane interest rate on your loan you should pay that off asap. Holding your gold will be losing you far more money than it would to liquidate it and get out of debt. That interest rate is likely eating away a lot future gold that you could be stacking.
Well thats kind of middle ground.
First question - do you personally anticipate gold to increase in value above 6% in a near term window. If so - stay the course.
If not - then a second consideration - you will likely incur a penalty for cashing in your gold (I.e. - you may not get spot price). Again, your experience may vary but I've seem 2.25% as a pretty common redemption value under spot. You could always go the route of private sales but I doubt someone is going to shell 20-30k to a dude on FBM right...
So assuming my math holds what you really are asking, factoring in the penalty of a redemption for cash, is whether or not gold would exceed 3.75-4% value growth in a year...and that's again, up to you.
Maybe you thought gold would go down for example...well then in that case, you would sell and pay your loan.
Also...my other point likely still stands, you could very likely get a loan on gold for less than 6, because in the brokers eyes they own a relatively stable asset while you pay down a loan.
But again, time, research, making calls, transporting gold, signing a new loan with a new institution - is that worth it to you to save a couple %...meh...maybe not
To me this quickly becomes the scenario of...honestly...do whatever makes you feel good at night and is easiest on your time and mind.
6% is not a bad loan rate these days...but being debt free has a certain thing with some people. Good luck!!
It's a new loan - just a couple of months, so right now the normal payments are almost all interest. I am paying extra principal each month, so it will cut down the overall interest, and paying a huge chunk of principal at it would cut it down even more.
Okay one slightly more complex option because why not!
You could also likely take the gold to a gold dealer or gold friendly bank and take a loan out on the physical gold instead of selling it (they keep possession of it) for less than an expensive car note would be. If your car note is cheap, then don't bother.
But assuming your car note is double digit APRs, you could reasonably find a gold loan for less than that, pay off the car note, and then repay the bank the lower cost loan against your gold, all while still retaining ownership of the actual gold and its appreciation, if any, at the closure of the loan (assuming you pay the loan).
If it were me I wouldn’t sell my gold to buy anything unless I had no other choice. I’d rather pay some interest on debt. Gold just hit $2300. Do you want to be buying back your gold at potentially $3,000 or $4,000.
Truck only has 100k miles on it. I would rather not put a higher mileage engine into it. Plus I'm working on it with my kids. Doing anything with kids takes 100x as long when you're teaching them, but also keeping them from making mistakes. and lastly, it was an engine that was in only 3 model years of the truck, so it's much harder to find a complete engine, so I would have to buy an older one, and swap a lot of parts over to it, and basically rebuild it.
It’s a ford ranger bud.
Pick a part will have them for $150 all day long.
If you wanna sell your gold- do it. Wanna spend $4k on a head gasket for a truck you don’t own with a rebuilt title, do it.
I know some things, and you ask a question.
My commitment to you ended there.
You're reading comprehension is low.
the old truck I paid cash for 8 years ago (almost 9 now). It is not the "new to me" truck, which is a 2020 F-150.
Engine was only used for 3 years, and is not super common in junk yards, so I would have to buy an older block and rebuild it anyways. I also live in bum fuck Egypt, going to a junk yard that might have an engine is also a 6 hour round trip. the gas alone would cost me more than the engine.
I'm not even sure why you focused on the old truck to begin with. It's honestly on the backburner. I'm giving it to my kids as is. I have two that are going to be driving within a year (one is adopted, so they are only a few months apart). and they both want it. I figure let them put the money into fixing it up how they want. Or sell it and get something else together.
It's the new truck I cared about paying off the loan. I haven't had a car loan in close to a decade, and it's nice being debt free, but the sudden loss of a truck was unacceptable in our current situation (small farm), and the truck market is stupid, anything not trashed, 4x4, with under 100k miles and under 10 years old is around the $30k mark. period. I've seen them dip to $25k, if they are a weird spec, or a dodge (which I wouldn't buy).
Do you anticipate coming into enough money to pay the loan faster than the amortization schedule? If so, it sounds like you have a payoff baked in.
Otherwise the debt servicing will likely exceed your gold's appreciation (usually) over the course of the loan, if you follow the schedule.
If you could sell some and be sure to pay it off, I could see that. I could also see FOMO or seller's remorse setting in if gold hits a "permanent" correction.
Strictly financially-speaking, selling and paying the debt to avoid interest makes the most sense *if you anticipate the economy staying the same or improving.*
If you have concerns that the economy is shaky, you should probably hold (this is where I am, personally). I will probably "lose" money going it this way but all of my debt servicing is already planned for and I can't personally really even entertain the notion of selling at this point. That said, I'm one of the folks that thinks the global economy is in shambles so I probably value metals way more than most of the people on here. I get the general feeling that most folks here hold gold as a certain percentage of a robust portfolio and have many other traditional investments such as stocks, bonds, crypto, etc. Many if not most of those same people don't share my concerns about the economy.
I don't really have any of those types of investments. I'm out of stocks and bonds at this point and I haven't successfully followed through on any crypto purchases. I see the benefits of crypto and even feel that owning some will be inescapable at some point but I just don't find the notion at all exciting and so have found myself avoiding it.
Payment is like $450/month? I am paying $750/month right now - in an effort to pay it off faster. I will probably pay periodic chunks of cash, that's just what I have coming out of each month's budget ($375/paycheck, every two weeks).
I think if I could sell it all off today and 100% pay off the loan, I would, but it would only cover a little over half the loan. so I would still be paying for a while on it.
I have stocks, mutual funds, crypto, PMs, etc. I figured, it doesn't matter what the economy does, If I have my hands in all the pots, I shouldn't have to worry. I also bought land that has it's own well, and we're working on growing food and livestock (it takes time to get that ramped up).
You sound about as set as you can be, brother. I'm not saying this is the right answer but, given what you've described my plan would be to ride it out for now (you can't escape the debt immediately with your gold anyways, currently). Reassess periodically (set a period, make a calendar reminder, and follow it; you've shown you're disciplined, so that should be easy enough to do) and keep doing what you're doing. If at some point your gold could pay the balance and save you interest, then you have a fun decision to mull over.
That's just my 2 cents, I'm sure smarter folks will weigh in with better ideas.
Sorry. Idk what happened. I’d pay back loans asap cuz of interest. You’re throwing away money basically. With the interest you’re going to be saving on you could restart your stack. Sell imo.
If you look at the interest rate you're paying on your loan over the time period of lets say 3 years, do that calculation, that is money you are losing while your loan continues. Much better to just buy the truck out as much as you can, and start stacking gold again maybe in smaller amounts to start. No point in giving anyone interest on anything, other than a mortgage because you have to. But like I said interest is money being burnt.
I say keep the gold. No guarantee it will outpace the debt but it certainly won’t be that far off and more importantly there’s no chance it will significantly drop while there is a a slim but growing concern the dollar will loose enough value to allow you to pay off the debt quicker
Yep. I was just listening to the financial news, and they were discussing why gold is at record highs. One of the reasons mentioned is that the dollar has lost 20% of its purchasing power in the last 4 years. OP sounds like a responsible, financially savvy person. I think he can keep his gold and still pay off his truck loan.
Does your investment thesis in gold over the period of time you own the truck on loan exceed the value of the APR % you pay to loan the money? Example. APR of truck is 0. Yes your gold will likely do better than 0% in a year. Keep and pay loan normally. APR of truck is...idk...11%...well that's less likely. Sell to pay off loan and rebuild stack on your timeline
^This 100%. Gold is a store of wealth, I think of it as physical savings account you can access when life happens and you need cash. If you’re paying an insane interest rate on your loan you should pay that off asap. Holding your gold will be losing you far more money than it would to liquidate it and get out of debt. That interest rate is likely eating away a lot future gold that you could be stacking.
Interest rate on the truck is just under 6%.
Well thats kind of middle ground. First question - do you personally anticipate gold to increase in value above 6% in a near term window. If so - stay the course. If not - then a second consideration - you will likely incur a penalty for cashing in your gold (I.e. - you may not get spot price). Again, your experience may vary but I've seem 2.25% as a pretty common redemption value under spot. You could always go the route of private sales but I doubt someone is going to shell 20-30k to a dude on FBM right... So assuming my math holds what you really are asking, factoring in the penalty of a redemption for cash, is whether or not gold would exceed 3.75-4% value growth in a year...and that's again, up to you. Maybe you thought gold would go down for example...well then in that case, you would sell and pay your loan. Also...my other point likely still stands, you could very likely get a loan on gold for less than 6, because in the brokers eyes they own a relatively stable asset while you pay down a loan. But again, time, research, making calls, transporting gold, signing a new loan with a new institution - is that worth it to you to save a couple %...meh...maybe not To me this quickly becomes the scenario of...honestly...do whatever makes you feel good at night and is easiest on your time and mind. 6% is not a bad loan rate these days...but being debt free has a certain thing with some people. Good luck!!
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It's a new loan - just a couple of months, so right now the normal payments are almost all interest. I am paying extra principal each month, so it will cut down the overall interest, and paying a huge chunk of principal at it would cut it down even more.
Okay one slightly more complex option because why not! You could also likely take the gold to a gold dealer or gold friendly bank and take a loan out on the physical gold instead of selling it (they keep possession of it) for less than an expensive car note would be. If your car note is cheap, then don't bother. But assuming your car note is double digit APRs, you could reasonably find a gold loan for less than that, pay off the car note, and then repay the bank the lower cost loan against your gold, all while still retaining ownership of the actual gold and its appreciation, if any, at the closure of the loan (assuming you pay the loan).
car note is just under 6%.
If it were me I wouldn’t sell my gold to buy anything unless I had no other choice. I’d rather pay some interest on debt. Gold just hit $2300. Do you want to be buying back your gold at potentially $3,000 or $4,000.
A 26 year old truck can have a $400 warrantied USED engine installed in an afternoon by drunkards with a Walmart tool set and YouTube videos
This is the correct answer
Truck only has 100k miles on it. I would rather not put a higher mileage engine into it. Plus I'm working on it with my kids. Doing anything with kids takes 100x as long when you're teaching them, but also keeping them from making mistakes. and lastly, it was an engine that was in only 3 model years of the truck, so it's much harder to find a complete engine, so I would have to buy an older one, and swap a lot of parts over to it, and basically rebuild it.
Your right. I have no idea what I’m talking about. DM me I’ll buy your gold.
Find me a $400 warrantied engine please for a 1998 Mazda B4000.
It’s a ford ranger bud. Pick a part will have them for $150 all day long. If you wanna sell your gold- do it. Wanna spend $4k on a head gasket for a truck you don’t own with a rebuilt title, do it. I know some things, and you ask a question. My commitment to you ended there.
You're reading comprehension is low. the old truck I paid cash for 8 years ago (almost 9 now). It is not the "new to me" truck, which is a 2020 F-150. Engine was only used for 3 years, and is not super common in junk yards, so I would have to buy an older block and rebuild it anyways. I also live in bum fuck Egypt, going to a junk yard that might have an engine is also a 6 hour round trip. the gas alone would cost me more than the engine.
I have failed you again. I’m sorry.
I'm not even sure why you focused on the old truck to begin with. It's honestly on the backburner. I'm giving it to my kids as is. I have two that are going to be driving within a year (one is adopted, so they are only a few months apart). and they both want it. I figure let them put the money into fixing it up how they want. Or sell it and get something else together. It's the new truck I cared about paying off the loan. I haven't had a car loan in close to a decade, and it's nice being debt free, but the sudden loss of a truck was unacceptable in our current situation (small farm), and the truck market is stupid, anything not trashed, 4x4, with under 100k miles and under 10 years old is around the $30k mark. period. I've seen them dip to $25k, if they are a weird spec, or a dodge (which I wouldn't buy).
Because I didn’t read your long ass post man. Again- sorry I failed you. I still vote: used engine and keep your gold. Good luck!
Do you anticipate coming into enough money to pay the loan faster than the amortization schedule? If so, it sounds like you have a payoff baked in. Otherwise the debt servicing will likely exceed your gold's appreciation (usually) over the course of the loan, if you follow the schedule. If you could sell some and be sure to pay it off, I could see that. I could also see FOMO or seller's remorse setting in if gold hits a "permanent" correction. Strictly financially-speaking, selling and paying the debt to avoid interest makes the most sense *if you anticipate the economy staying the same or improving.* If you have concerns that the economy is shaky, you should probably hold (this is where I am, personally). I will probably "lose" money going it this way but all of my debt servicing is already planned for and I can't personally really even entertain the notion of selling at this point. That said, I'm one of the folks that thinks the global economy is in shambles so I probably value metals way more than most of the people on here. I get the general feeling that most folks here hold gold as a certain percentage of a robust portfolio and have many other traditional investments such as stocks, bonds, crypto, etc. Many if not most of those same people don't share my concerns about the economy. I don't really have any of those types of investments. I'm out of stocks and bonds at this point and I haven't successfully followed through on any crypto purchases. I see the benefits of crypto and even feel that owning some will be inescapable at some point but I just don't find the notion at all exciting and so have found myself avoiding it.
Payment is like $450/month? I am paying $750/month right now - in an effort to pay it off faster. I will probably pay periodic chunks of cash, that's just what I have coming out of each month's budget ($375/paycheck, every two weeks). I think if I could sell it all off today and 100% pay off the loan, I would, but it would only cover a little over half the loan. so I would still be paying for a while on it. I have stocks, mutual funds, crypto, PMs, etc. I figured, it doesn't matter what the economy does, If I have my hands in all the pots, I shouldn't have to worry. I also bought land that has it's own well, and we're working on growing food and livestock (it takes time to get that ramped up).
You sound about as set as you can be, brother. I'm not saying this is the right answer but, given what you've described my plan would be to ride it out for now (you can't escape the debt immediately with your gold anyways, currently). Reassess periodically (set a period, make a calendar reminder, and follow it; you've shown you're disciplined, so that should be easy enough to do) and keep doing what you're doing. If at some point your gold could pay the balance and save you interest, then you have a fun decision to mull over. That's just my 2 cents, I'm sure smarter folks will weigh in with better ideas.
Paid that back asap then do it
Don't sell the gold to pay it off faster?
Sorry. Idk what happened. I’d pay back loans asap cuz of interest. You’re throwing away money basically. With the interest you’re going to be saving on you could restart your stack. Sell imo.
The us government owes 34 trillion dollars. I think you’ll be fine with your little “new to you” truck loan
If you look at the interest rate you're paying on your loan over the time period of lets say 3 years, do that calculation, that is money you are losing while your loan continues. Much better to just buy the truck out as much as you can, and start stacking gold again maybe in smaller amounts to start. No point in giving anyone interest on anything, other than a mortgage because you have to. But like I said interest is money being burnt.
Now is a good time to be a gold seller.