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Personal Loans

Can You Use Personal Loans to Buy Gold or Silver?

Updated Jun 20, 2023   |   3-min read

Gold and silver are considered stable investments suited for times of financial uncertainty. The old wisdom goes that investors put their money into commodities—e.g., gold and silver —when the stock market or economy is in turmoil.

You may wonder whether using a personal loan to buy gold or silver is a viable investment strategy. If you can get a loan with a rate lower than you expect your return on investment to be, this could be worth it. But first, consider several factors.

Using a Personal Loan to Buy Gold and Silver

Some people use a personal loan to invest in gold and silver because when interest rates are low, and the price of gold and silver is rising, the metal prices could increase at a higher rate than what you’ll pay in interest on your loans.

This is an unwise investment strategy for many people. Below are personal loan lenders you may consider to buy gold or silver and the downsides to this strategy.


  • From our perspective, there are no pros to taking out a personal loan to buy gold or silver


  • Not everyone will qualify for a personal loan at an interest rate low enough to ensure they come out ahead after factoring in the increase in the value of gold or silver.

  • This investment is risky.

    If gold or silver prices decrease, you might not make money. This is a poor choice for anyone who can’t afford to lose part of their investment.

Personal Loans to Buy Gold or Silver

Upgrade Personal Loans Logo

  • Rates as low as 7.99%
  • Minimum credit score of 620
  • Repayment terms of 36 or 60 months
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  • Rates are typically between 8.41% and 35.99% APR1
  • Get funds as fast as one business day
  • A minimum credit score of 600 in most states

If you want other options, check out our guide to the best personal loans.

What Are the Returns on Gold?

With current interest rates, would you make money borrowing to invest in gold? Gold returns can vary depending on the time period. For example, in the past year, gold has increased in price by more than 29%.

That might make you want to rush out and buy gold, but you should know that in the past 10 years, gold has increased in price by only 16.76%, which works out to an annual return of 1.56%—less than the amount you would have likely paid to borrow money over those 10 years.

What Are the Returns on Silver?

Did silver fare better over these same time periods?

In the past year, silver increased in price by over 19%. In the past ten years, however, silver decreased in price by 4.7%.

As you can see, the price changes fluctuate considerably over time. If you are taking out a personal loan to buy silver (or gold) you are taking a big risk that your investment will go down over time or won’t increase in value enough to cover the interest you will pay on your loan.

Bottom Line

Using a personal loan to buy gold or silver is risky, and you should consider whether it’s a good idea given the market before making any decisions.

But even if you are a sophisticated investor and think you can predict when the price of gold or silver is set to skyrocket, you may be wrong and end up losing money.

1The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.