Sell Assets or Take Out Loan

[Anonymous]

Help me decide. Have a bill to pay for MIL's nursing home and to get her over the property tax hump, both will hopefully be alleviated once we sell the house this fall.

I was mentally prepared to take out a small $5,000 - $6,000 loan at about 5% at my credit union. BUT, we do have some gold and platinum coins just sitting around that could get us over this hump, but selling them must be a psychological barrier I'm having.

Clearly the coins are for a rainy day and seems awfully cloudy out there right now. I don't know why I hate to part with them.

Any thoughts?

[Anonymous]

I would take the loan at 5% and hold the coins. If I had to split the difference I'd sell platinum but hold onto the gold. You want to sell the latter when it's spiking in price, not after it's fallen 40%. Good luck.

[Anonymous]

If you can afford the monthly payment for the 5%, then take the loan and pay off when you sell the property in Fall. If you can not afford the monthly payback the loan, then it is rainy day to you in my opinion. Sell the platinum or gold coins.

[Anonymous]

You will owe 20% capital gains tax (plus state) on any precious metals you sell. At today's rates, the loan might be cheaper.

[Anonymous]

Anonymous wrote:If you can afford the monthly payment for the 5%, then take the loan and pay off when you sell the property in Fall. If you can not afford the monthly payback the loan, then it is rainy day to you in my opinion. Sell the platinum or gold coins.

+1

[Anonymous]

Thanks for the opinions. Just to update, loan rate is 8.99%. I probably misread a teaser at some point. I'm going to see of they'll lower it, since I've used for two car loans and have good history.

[Anonymous]

You're paying 9% to hold gold. Don't.

[Anonymous]

Anonymous wrote:You're paying 9% to hold gold. Don't.

+1