Anyone want to buy some gold? (or make a gold-secured loan?)

Business Money
1

Ok, I’m running out of cash. I can go through all sorts of hassles to get cash from the U.S., or I can either sell or secure a loan with three 1oz Maple Leafs I brought with me.

I’d rather use these as collateral for a loan than sell them, but if you really want some coins (and nobody’s willing to work out a loan), you can buy them from me at spot.

Let me know. Boring math stuff:

Gold is currently about US$404.30 per ounce:
finance.yahoo.com/currency/conve … it=Convert

or, 13708 NTD (TWD) per ounce:
finance.yahoo.com/currency/conve … it=Convert

Coin typically trades at US$10 (~NT$335) over the raw price, since with coins, you’ve got a government mint assuring quality.

Loan terms: I’m willing to pay 12% annual (non-compounded) interest on a short-term (probably 3-6 months) loan. I get the NTD of the spot price for “today”, you get to hang on to the gold. When I pay you back (one big lump sum at end), you get the NTD plus interest, I get the coin back. Straightforward exchange. To get interest owed, divide number of days by number of days in a year, multiply that by 0.12 and by the original amount, add the original amount, and figure that’s how much I owe you.

Example: I pay you back after 91.25 days. 0.12 * (91.25 / 365) = .03.
(.03 * 13708) + 13708 = 411.25 + 13708 = 14119.

It’s about six times more than you’re getting in a savings account right now, from what I’ve heard. If you care, my credit score was 750 last time I looked, which is pretty damn good. It’s probably even higher now since I don’t have a ~$158,000 mortgage hanging over my head. I’m employed, I’m honest, and I’m not leaving. Sound fair? Drop me a note.

2

Good God, man! How is that possible? Is this the slow busking season?

Go to any jewelry/gold shop. They will give you the cash.

3

You have three ounces. You want to borrow what is today valued at 3*13708. After 3 months I can earn 411.25 * 3 NT$. Is this what you are saying? That after 3 months I can earn 1200nt from you? Surely not?

4

Does Taiwan have pawn shops? Seems like this would be the type of thing a pawn shop would do

5

Yes they have pawn shops but a gold shop is better. Just go in and change them. Take about 5 minutes.

6

Yes, that’s correct. What, you want to double your money every month??

At that rate, it’s 12% interest per year. That’s not bad at all IMHO. At the bank, if rates are 2%, you’ll get about 70NT; if rates are 1.5% you’ll get about 50NT.

We’re talking about 13,708 NT, not NT$100,000,000,000

Yes, but I’d prefer not to sell them unless I have to – and if I have to, I’d rather sell them without commission.

7

Something’s kinda fishy here…you talk about US banks but bringing Maple Leafs. What are you? Some sort of Canadian spy? :laughing:

8

Something’s kinda fishy here…you talk about US banks but bringing Maple Leafs. What are you? Some sort of Canadian spy? :laughing:[/quote]
Hey, I take whatever people will give me. :blush:

That’s why I’ve kept them over the years – these were Christmas and birthday presents. I always was a bit of a dragon when it came to gold and jewels.

9

Doesn’t the value of the gold also depend on the purity? You’re quoting prices for pure gold, not finished gold pieces that could have other metals mixed in.

Seems to me a gold shop would be in the best position to lend you money, since they would feel comfortable inspecting the gold. All we could do is maybe take a bite of it.

10

[quote=“MaPoSquid”]Yes, that’s correct. What, you want to double your money every month??

[/quote]

If you’re OK with that, you’re on. Otherwise spending at least half a day faffing around getting it checked by a jeweller and meeting up: don’t think so. We’d at least want to have a beer or coffee together and that would be 25% of the profit down the pot.

11

[quote=“Neo”]Doesn’t the value of the gold also depend on the purity? You’re quoting prices for pure gold, not finished gold pieces that could have other metals mixed in.

Seems to me a gold shop would be in the best position to lend you money, since they would feel comfortable inspecting the gold. All we could do is maybe take a bite of it.[/quote]
This isn’t gold flakes, freshly panned from a mountain stream. These are minted coins, certified by Canada as being .999 fine, in measured weight (one troy ounce).

(I could’ve brought the Krugerrands, but I didn’t have a spare container to split the collection – I’ve got a lot more 'rands than MLs.)

And this is not a loan solicitation for “hey, give me an unsecured loan for unspecified purposes, I’ll give you 8%” from some unknown person in New York making a first post ever on this forum; it’s secured (to the extent that gold can secure a loan), with me being local, and known, and kneecappable in a pinch.

In fact, it’s not necessarily even a loan solicitation; if someone wants to give a kid a graduation gift, hey, WTH, they’d be for sale at spot, which is better than any gold shop would sell at.

But no matter. Someone kindly offered to help me out, which will let me do my visa run to HK without having to sleep on a park bench somewhere.

Sheesh. I would’ve bought on the beer/coffee – I may be low on cash, but nobody’s ever accused me of being a piker. :unamused: