[50 btc] 100% secured business development loan

[usagi]

Hello. As part of an aggressive expansion plan, TU.SILVER is looking for a 50 BTC loan to help fund a purchase order. I'm trying to buy a 100oz bar of Silver and I'm looking for a purchase partner to put up half the money.

I will accept discussion on terms here directly, although I've created a BTCjam listing as well for convenience sake:

https://btcjam.com/listings/2172

TU.SILVER Business Development Loan

Amount @ Rate
    ฿50.00000 @ 1.0%     (64% funded)
    MtGoxUSD
    118% Secured

Payment
    ฿17.00111
    every 5th of the month

User
    usagi

User Loan Activity
    0 Active, 1 Repaid

Expires
    2013-03-15 00:00
    (in 13 days)

Term
    90 days


Description

TU.SILVER business development loan.

TU.SILVER is the largest precious metals fund in the community, with more than 20 times the liquidity of all precious metals funds combined. TU.SILVER's volume is around 60oz per month.

I usually order 20oz. of silver at a time as coins. However, I can save more than 50% on shipping if I order 50oz. of silver at a time. Additionally we can get a bulk order discount of up to .50 cents per ounce of silver this way. This is very significant when you're trying to attract customers by beating your competitors in price as well as service.

Basically the plan is to buy silver in one form or another in bulk and then sell it for a profit. I suspect my volume would be even higher than 60oz. a month if I could move silver a bitcent lower than I do now.

Please see TU.SILVER's profile page here:
https://bitfunder.com/asset/TU.SILVER

Please see TU.SILVER's audited monthly financial reports here:
http://kongzi.ca/silver/20130224TSR.pdf

Most recent weekly report:
http://kongzi.ca/silver/TSR/20130303TSR.pdf

Note: This is a 100% secured loan. As it should be.
Note: Loan will be paid back ahead of schedule if we move the silver before then.

[1713890219]

1713890219

[1713890219]

1713890219

[usagi]

Can't believe the length of time this loan is taking to close.

This is rated a 24. That's a full 9 points higher than anything else on BTCjam for the last two weeks.

I'm sorry to have kept investor's money tied up for the last week as I wait for the loan to close ;-)

Now, I need 3 more BTC to close the loan.

Can anyone loan me 3 BTC please?

https://btcjam.com/listings/2172

[Tomatocage]

You have way too many posts and have been here far too long and will most likely be around for years to come. People only loan to new accounts with no post history that will be abandoned immediately after getting a loan. Sorry

[Henchman24]

Invested 3btc.

[BurtW]

You are only paying 1% interest AND it is pegged to USD.  So there is a very (huge) chance that I would get back less BTC than I put into the loan.

Say I put in 10 BTC and get back 8 BTC at the end of the loan.  Sure, I made a whole whopping 1% dollar on dollar - which I can do at a bank - but I just lost 2 BTC.

Why would I do that?

Good luck to everyone that went in on this loan.  You are betting that the price of BTC will stay the same or go down over the period of the loan.

[🏰 TradeFortress 🏰]

Yeah, I feel a lot of people wouldn't want to get less BTC than they put in.

[420]

I was going to fund until I see it is denominated in only 5% return USD equivalent

[BurtW]

I was going to fund until I see it is denominated in only 5% return USD equivalent

Just curious where you got "5% return"

Here is what the loan says:

Amount @ Rate
฿50.00000 @ 1.0%
 MtGoxUSD
 105% Secured

Which is a 1% dollar on dollar return.  So if you invest $100 worth of BTC you will get back $101 in BTC no matter what the price is.  If the price doubles you get back only about 1/2 the BTC you loan out.

Of course if the price dives and is 1/2 the price today you will get back twice as many BTC.

As I said these kinds of loans are short BTC - you (as a lender) are betting that the price of BTC is going to go down.

[420]

I was going to fund until I see it is denominated in only 5% return USD equivalent

Just curious where you got "5% return"

Here is what the loan says:

Amount @ Rate
฿50.00000 @ 1.0%
 MtGoxUSD
 105% Secured

Which is a 1% dollar on dollar return.  So if you invest $100 worth of BTC you will get back $101 in BTC no matter what the price is.  If the price doubles you get back only about 1/2 the BTC you loan out.

Of course if the price dives and is 1/2 the price today you will get back twice as many BTC.

As I said these kinds of loans are short BTC - you (as a lender) are betting that the price of BTC is going to go down.

oh 1% over 90 days? thats horrible

but what does secured mean? he secured with his own stash

[🏰 TradeFortress 🏰]

I was going to fund until I see it is denominated in only 5% return USD equivalent

Just curious where you got "5% return"

Here is what the loan says:

Amount @ Rate
฿50.00000 @ 1.0%
 MtGoxUSD
 105% Secured

Which is a 1% dollar on dollar return.  So if you invest $100 worth of BTC you will get back $101 in BTC no matter what the price is.  If the price doubles you get back only about 1/2 the BTC you loan out.

Of course if the price dives and is 1/2 the price today you will get back twice as many BTC.

As I said these kinds of loans are short BTC - you (as a lender) are betting that the price of BTC is going to go down.

oh 1% over 90 days? thats horrible

but what does secured mean? he secured with his own stash

It means that the only risk in this case is that Btcjam goes out of business / scams. 4% apr is good given the risk, but sitting on bitcoin has being more profitable (even considering the risk).

[usagi]

oh 1% over 90 days? thats horrible

but what does secured mean? he secured with his own stash

It means that the only risk in this case is that Btcjam goes out of business / scams. 4% apr is good given the risk, but sitting on bitcoin has being more profitable (even considering the risk).

The problem is it's not horrible, it's good. "4% apr is good given the risk" -- that's the key. I remember 'someone' declined a job-secured 10% annual loan and counter-offered 400% because bitcoin, not one month ago. This person is destined to lose all their money pursuing such a policy.

Nobody knows what is going to happen with the BTC price and believing it will go up because it always goes up is foolish. If you have a LOT of BTC you would be wise to diversify it a little and this is a quick and easy way to short a few BTC without having to pay too many expenses. In fact, you're even earning interest.

Anyways the loan went thru so I will lock this and, well, we will see what happens in 3 months