Borrow Low – Deposit High – Cheap Yen

Here’s how to capture a Japanese tidal wave of profit.


A reader sent this note about our Borrow Low Deposit High strategy.

I saw your article on buying into Japan with borrowed money. It is too complex for me. Could the same be accomplished with a Japan ETF? If so, do you recommend a particular one?

My reply was that ETFs are, for most investors, the best way to borrow low and deposit high.

The original idea of Borrow Low Deposit High was to borrow a fundamentally weak currency that had a low interest rate so the loan could be invested in a fundamentally strong currency that had a high interest rate.  The investment provided income from a positive carry (higher interest than the cost of the loan)  and eventually provided a forex profit when the borrowed currency dropped in value versus the invested currency.

This worked like magic for decades.  Readers made huge profits.

Then the era of low and zero interest came along.   The basic idea stopped working.  We had to adapt.

Our value investing analysis helped us create a new tactic for this strategy.

The NEW Borrow Low Deposit High technique is to invest in a good value stock market denominated in a fundamentally strong currency that has a low interest rate.

Take for example the Japanese stock market.

Japan has the sixth lowest price-to-book among developed stock markets with a 1.42 price-to-book ratio.

keppler asset management

Compare this 1.42 with world market and the US price to book.


The US price-to-book is 3.01 (compared to Japan’s 1.42).

The NEW Borrow Low Deposit High idea is to use a margin account to leverage an investment in a Japanese stock market ETF.

We use the iShares Japan ETF  (Symbol EWJ).

The iShares Japan we hold in our portfolio dropped 6.9% over the last quarter of 2018 but only slightly underperformed the S&P index which fell about 6.2% in the same period.

For value accumulators who bought and held EWJ, a December 2018 dividend of .40 cents (.75% or appx. 1.5% annual rate) mitigated some of the loss.

The Japanese yen was one of the few currencies that remained stable versus the greenback in the last quarter of 2018.

The chart below shows the yen-dollar rate barely moving in the last quarter of 2018.  The potential for yen strengthening gives this investment extra forex profit potential.

The second part of the strategy is to leverage the speculation with self-liquidating collateral loans.

An easy way to have a leveraged short term speculation is to buy the ETF shares on margin.

Most stockbrokers, even online, will lend investor’s money to invest in ETFs, including the iShares Japanese ETF (EWJ).  Normally the broker will want a minimum deposit ($2,000 is typical) and about 30% of the cost of the share to start and maintain the margin.

Brokerage firms charge differing interest rates on the margin loans.

Here is a comparison at (1) of 2019 margin rates by various online brokers.

Interactive Brokers

Interactive Brokers appears to charge the lowest interest rate by far.  The rate on a $100,00 (or less) loan was 3.9% in early 2019.

The entire margin loan can be invested in one ETF that represents one market or (as I have done) in numerous ETFs that represent numerous markets.

Each broker has a unique set of margin rules.

Be sure to clearly understand the rules and rates of any broker from which you borrow and never leverage any investment for more than you can afford to lose.

In summary, this Borrow Low Deposit High tactic uses a brokerage account and margin loan to borrow US dollars to leverage an investment in the iShares MSCI Japan ETF (symbol EWJ).   The strategy is based on investing in a good value stock market that is likely to overperform the US market.  The investment is in a currency (the Japanese shares in EWJ are denominated in yen) that is likely to rise so the investment has extra forex profit potential.

You can learn all the details of using margin loans to Borrow Low and Deposit High invest in many markets in my newest report “Silver Dip 2019”.

Details are below.


Borrow Low – Deposit High

Turn $250 into $51,888… in Four Years or Less.   If someone offers you a deal like this, I would normally say “Run as fast as you can!”

Yet in 1986. This is exactly what I wrote in a report, The Silver Dip”  that told how to borrow British pounds to buy silver.  I must admit it. I was wrong. Readers who followed the report made nearly that amount ($46,299 to be exact) in only one year!

I have been updating this report since.  The last update showed how to get 2% loans that turned $39.95 into $28,185 profit.

Now is the time to borrow low and earn high again because… an amazing investing trend is taking place.

Most investors will miss it.   You do not have to lose out.

Really?  Let’s take a look why.

I have been helping readers use a little known, easy loan investing technique for over 30 years.   Almost any investor can get the loans.

The $39.95 is for a report that explains how to borrow $10,000… no loan application required.   You’ll  get the lowest interest rates in town according a Barron’s 2017 online review.

Right now the loan interest rates are between 1.41% to 2.66%.

Here is what happened the first time I issued this report over three decades ago.

The year was 1986.  The price of silver had crashed, I mean really crashed from $48 per ounce down to $4.85 in May 1986.  

Everyone was afraid of investing in silver.

But I had been investing and writing and speaking about global investments since 1968.   When I issued the Silver Dip in 1985 I  had nearly 20 years of experience, so knew that when fear rules a market, the chance of profits are high.

As prices decreased from early 1983 into 1986, total supply of silver had fallen to 449.7 million ounces.  Mine production was restricted by the low prices at that time.  Secondary recovery of silver was constricted by low prices as well.

Then a “special silver pricing position” fell into place.

I showed readers how to borrow 10,000 British pounds at cheap interest rates, to invest in silver.   A British pound at that time was worth $1.86 so the loan was sufficient to buy 3,835 ounces of silver at $4.85 per ounce.

Silver’s price skyrocketed to over $11 an ounce within a year.  By 1987 the 3,835 ounces of silver was worth $42,185.

The profit did not stop there!

The loan was in British pounds.  By May 1987 the pound had dropped from $1.86 per pound to only $1.40 per pound.  The 10,000 pound loan that had been worth $18,600 in 1986 only required $14,000 to pay it off in 1987.

The falling pound had created an extra $4,600 profit.

Do the math: 

Silver worth $42,185

Loan payoff  $14,000

Profit             $28,185

Cash Required  Zero

All of this profit was made on the 10,000 pound loan.  No extra cash was required on the investor’s part.

The $28,185 was pure… extra profit.

Let me add that some investors had borrowed even more.  Some less.  The report showed a loan to risk  formula that investors could follow.

That was in the 1980s.  Silver’s special pricing position” does not happen often (this is why most investors miss it).

Nearly 30 years passed before the “silver’s special pricing position” fell into place again.

Conditions for the silver dip returned 30 years later in 2015.  The availability of low cost loans and silver’s price were perfect.

With investors watching global stock markets bounce up and down, most missed this important profit generating event. 

My readers did not.

I had been watching the entire 30 years for “silver’s special pricing position” to return.

I had been watching currency shifts and interest rates distortions so I knew the best currency to borrow.

From 2011 to 2015 the price of silver had once again crashed from $48.35 to below $14 an ounce.

The “special silver pricing position” reappeared.

I dusted off the “Silver Dip” and updated it to the “Silver Dip 2015”.

I prepared a “Silver Dip 2015” report and shared it immediately.  

The report paid off again.

From July 2015 to July 2016, the price of the silver ETF  iShares Silver Trust (Symbol SLV) rose from $13.92 and ounce to $18.71.  You can see the rise in the chart below.


A 10,000 pound loan (the pound was $1.52 per pound) purchased 1091 shares of the silver ETF SLV.   Those Shares rose to be worth $20,421 by 2016, a 34.34% additional profit.

The profit did not stop there!

The loan again was in British pounds.  From 2015 the pound dropped from $1.52 dollars per pound to only $1.39 dollars.  The 10,000 pound loan that had worth $15,200 in 2015 only required $13,900 to pay it off in 2016.

yahoo pound chart

The falling pound had created an extra $1,300 profit.

Do the math: 

Silver worth $20,421

Loan payoff  $13,900

Profit             $6,521

Cash Required  Zero

All of this profit was made on the 10,000 pound loan.  No extra cash was required.

Again this was pure… extra profit.

Some investors borrowed less… others borrowed much more so their profits were even higher.

All the extra earnings were derived from a low cost, easy to obtain loan that almost any investor can have.

I would like to help you learn how to tap into this type of profit that most investors will miss… in my newest report “The Silver Dip 2019”.

First let me answer a really important question…  that if you have not asked, you should.

Isn’t there some risk?

Yes.  There is always risk when you invest.

The first golden rule of investing outlined in the Silver Dip 2018 report is…”there is always something we do not know”.

The numbers above are what have happened.   We never know for sure what will happen.

2015 was similar to 1986.  Investors were afraid of silver.  Courage was required and this is exactly why dip investments work so well.

When most investors are afraid of a precious metal, extra good value is created!

Plus there is a way to dramatically increase the odds that your investment will be safe and that you’ll reap the type of high rewards I have described above.

The formula for increasing safety and improving the odds for profit are included in the new report, “Silver Dip 2019”.

The benefit of 50 years experience.

With so many years of experience in watching markets, metals, bonds, interest rates and currencies, I have learned many special pricing situations to watch for.

These special opportunities do not appear every day.  That’s why they are special.

Unless you have seen them come and go, it’s hard to see them coming again.

That is why I was willing to wait for years for silver to be in a special pricing position.

Our courses and reports are about finding good value and they have been helping astute readers find value investments, again and again for 50 years.

The “Silver Dip 2019” report shows a new, even bigger opportunity.  I continuously watch for aberrations in currency and precious metal markets.   Sometimes a rare quirk, such as we saw with the pound loans and the Silver Dip offer potential for profit, with very little risk of long term loss.

Investors who speculate on platinum at the correct time can make fortunes.

The time is now.

Success is almost guaranteed.  In fact an 89 year study showed a 99% change of success when sequence distortions are worked in a certain way.

We are stalking precious metal opportunity now.

The trap is set. We are waiting…

This opportunity is explained in the report “Silver Dip 2019”.

You can order the Silver Dip 2019 here for $39.95

Here is why there is no risk for you.  The report is 100% guaranteed.

I do not sell book, reports and courses.  I offer benefits.  If  the Silver Dip 2019 does not bring you the benefits you expect, just let me know within 60 days and I’ll send you a quick, no questions asked, full refund.

I can’t promise that silver’s price will rise in the next 60 days.  I can guarantee you’ll be fully satisfied with the report or… you can have your money back in full.

You can order the Silver Dip 2019 here for $39.95



(1) is a 2019 margin rate comparison