Gold and Credit Cards (noob question)

[pifhluk]

Preface: I have no idea what I am doing in regards to this and am a complete noob but I had an idea and was looking for some advice.

So if I can borrow 15K+ on credit cards and continually move this money around so that it maintains 0% interest by using balance transfers etc. what should I buy with this money?

The first thought that came to mind was to just by gold coins on my credit cards, golds value goes up, keep my interest at 0% get a couple hundred dollars worth of gift cards and make some money.

I understand about credit ratings and that if I have my credit cards racked up then I will not be able to easily loan money and my rating will drop. Currently my credit score is 770+ across all 3 agencies and I have somewhere around ~30k of available credit and not even 1k of it used.

Does this sound like a good idea?

[petp_the_greek]

not a smart idea, if the market goes down then youre in deep poo-poo. as an example, a guy i used to work with back in 2001 had around 35K in his 401(k) plan....he cashed it all out, well, actually he took a loan against all he had and invested it all in internet stocks. well....u can imagine what happened next.

[ChuckyB]

Gold has more than doubled in the last 6 years and NOW you want to leverage in?

Buy low, sell high.

I'm of the opinion that this kind of borrowing to invest doesn't make a whole lot of sense. As the first responder mentioned, risk is a big deal.

[soko]

Pifhluk what you are talking about with taking advantage of 0% introductory interest rates is not new, There is a name for it called an App-o-Rama http://app-o-rama.com/

"The App O Rama is a strategy of completing multiple applications at the same time. The goal is to get as many bonus offers and new credit lines as one desires, in a quick and convenient way."

There have been accounts of people taking out huge lines of credit at 0%, putting it in a long term savings account at 5% and profiting $20,000 after paying the debt back.

[kimchi]

[ QUOTE ]
Gold has more than doubled in the last 6 years and NOW you want to leverage in?

Buy low, sell high.


[/ QUOTE ]

Buy high, sell higher is also a viable strategy.

To OP - don't borrow to buy a risky asset. Just park the money in high interest easy access cash accounts.

[pifhluk]

[ QUOTE ]
[ QUOTE ]
Gold has more than doubled in the last 6 years and NOW you want to leverage in?

Buy low, sell high.


[/ QUOTE ]

Buy high, sell higher is also a viable strategy.

To OP - don't borrow to buy a risky asset. Just park the money in high interest easy access cash accounts.

[/ QUOTE ]

so take the money out by using a cash advance and then transfer the balance to a 0% card?

[tolbiny]

[ QUOTE ]
[ QUOTE ]
Gold has more than doubled in the last 6 years and NOW you want to leverage in?

Buy low, sell high.


[/ QUOTE ]

Buy high, sell higher is also a viable strategy.

To OP - don't borrow to buy a risky asset. Just park the money in high interest easy access cash accounts.

[/ QUOTE ]

If you think the dollar is going to fall further put it in foreign high dividend bearing stocks.

[ChuckyB]

[ QUOTE ]
[ QUOTE ]
Gold has more than doubled in the last 6 years and NOW you want to leverage in?

Buy low, sell high.


[/ QUOTE ]

Buy high, sell higher is also a viable strategy.

[/ QUOTE ]

But not nearly as profitable...and worthy of the risk.

[kyleb]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Gold has more than doubled in the last 6 years and NOW you want to leverage in?

Buy low, sell high.


[/ QUOTE ]

Buy high, sell higher is also a viable strategy.

[/ QUOTE ]

But not nearly as profitable...and worthy of the risk.

[/ QUOTE ]

How do you know that gold is not still undervalued? Just because it has doubled in six years?

[Ray Zee]

you can make about 5% on this 15k which is 750 a year but alot less as you wont have it all in your possesion all year. so its not worth it for all the work you do.