If....and a question
edmundfitzgerald
Posts: 4,306 ✭✭
If in the years to come we see a DJIA drop from 9,000 to 3,000 in a matter of months.
If we see some serious inflation, even hyperinflation.
If we see the collapse of the US dollar during this time period.
If you had a home equity line over $100,000.00 at a fixed rate, not an adjustable one.
Question.........
Would you use all your home equity line of credit to buy gold ?
If we see some serious inflation, even hyperinflation.
If we see the collapse of the US dollar during this time period.
If you had a home equity line over $100,000.00 at a fixed rate, not an adjustable one.
Question.........
Would you use all your home equity line of credit to buy gold ?
0
Comments
Positive BST Transactions (buyers and sellers): wondercoin, blu62vette, BAJJERFAN, privatecoin, blu62vette, AlanLastufka, privatecoin
#1 1951 Bowman Los Angeles Rams Team Set
#2 1980 Topps Los Angeles Rams Team Set
#8 (and climbing) 1972 Topps Los Angeles Rams Team Set
IF there was going to be runaway inflation, the time to use
the credit line on metals would be now.
BUT, there will likely be no such inflation for a very long time.
Massive DEFLATION is ongoing.
TRILLIONS of bucks have been sucked out of the economy
via real-estate/other asset classes. TRILLIONS more will be
gone with the wind, before the bottom gets close.
The printing presses can roll at MANY times their current
speed and still not offset the wipeout for a decade or more.
................
The idea of jumping on a 3000 DOW is intriguing, but its wisdom
lacks any provable element.
As America and its economy disintegrate, predicting a "comeback"
is clearly not even a 50/50 play.
Comebacks from 1929 happened inside of a UNITED country. A
divided/Balkanized nation will produce MUCH different results. A
free nation can bounce forever, but an enslaved/split "group of
states" can only produce bubbles and crashes.
the rates on adjustable interest HELOC's are insanely low now and have been for a couple of years. but i wouldn't want to create more debt by buying gold.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Are we a little bid paranoid today? Not gonna happen in your lifetime, so stop having nightmares about it. Go see a good movie or read a non PM doomsday book. >>
In 1928 I'm sure they felt the same way.
In 1928 money was backed by some thing though.
Rules were in place & followed too.
TBTF have no rules or scruples as far as I see
If we see some serious inflation, even hyperinflation.
If we see the collapse of the US dollar during this time period.
If you had a home equity line over $100,000.00 at a fixed rate, not an adjustable one.
Question.........
Would you use all your home equity line of credit to buy gold ?
That's alot of "ifs" but they all imply the same thing. What is the degree of certainty? 100%?
I would think real hard before buying *any investment* on margin, which is essentially what you would be doing by using a home equity line to fund gold purchases.
Buying on margin assures one thing - more volatility. Volatility is the definition of risk. I'm less than lukewarm on the idea. jmho.
I knew it would happen.
would the (possible) interest/profit you would make with that hunk of gold offset the interest you are gonna pay to borrow that $$$ in the first place from your HELOC?
Not a smart move IMO. Why put your home at risk on speculation?
Too many positive BST transactions with too many members to list.
If you owe on your home (traditional mortgage) and you buy PMs instead of paying down the mortgage, isn't that a 'soft' kind of buying on margin? ( more if's I guess, ... if your equity is low, did you buy on TOP of the market and value tanked?, if your other assets don't cover the difference, if your tax bracket is high/medium/low (but the bank/mortgage co. is still getting the other % that wasn't written off, compounded over time. Yes, future dollars not worth as much with inflation,... dang I'm getting a headache.... which is better?)
I sleep better with the home paid for, no debt ( although current injury seriously curtailed income and had to go into business line of credit, second time in 18 years. HATE IT!! Had to sell my Barbers to keep it at a minimum)
I've thought about the OP question many times, do I really REALLY believe it's going that way? I hope not. But can't put all your eggs in one basket. No debt, cash, PMs, ...stocks? No nimble Day Trader here.
Do like so many fellow Americans: max out the lines of credit, buy something with the money ( in this case: PMs), make the monthly payments/stop making payments ?,live in home 'free' until they foreclose....when? They don't want to mark to market the real value , do they? Just let it roll baby, eat drink and be merry, tomorrow you may be worm food...
Buzz up! 1 Print..Topics:BondsEconomic news.Paul Farrow, 11:48, Monday 19 July 2010
National Savings & Investments has withdrawn its popular inflation-beating certificates from sale.
NS&I has announced that its Savings Certificates (both fixed-interest savings certificates and index-linked savings certificates, also known as inflation-beating savings) have been withdrawn from general sale.
It is also reducing the interest rates paid on its Direct Saver and Income Bonds by 0.25 of a percentage point with immediate effect. Sales volumes in recent months across all three products have far exceeded those either anticipated or required by NS&I, it said.
Jane Platt, NS&I's chief executive, said: We are tasked with meeting the government financing objective called our Net Financing target which is set for us each year by HM Treasury.
Weve seen significant amounts of money invested into these products over recent months and so weve taken the difficult decision to withdraw Savings Certificates from general sale and reduce the interest rates paid on our Direct Saver and Income Bonds. This is designed to ensure that we do not exceed the upper end of our Net Financing target range.
The volume of sales over the past few months is such that our forecasts show we were at risk of exceeding the top end of the range, so we needed to take action to reduce sales.
NS&Is website and call centres stopped taking new sales of Savings Certificates from this morning, and Post Office counter sales have also been suspended with immediate effect.
Last December the state-owned savings institution took its entire range of fixed-rate savings bonds off the market.
well be coming this way in the very near future.
I wouldn't do what you are thinking, but props to you for trying to figure out a plan (w/gold) to try and beat the
upcoming inflation. 50% cash and 50% gold would be good as long as you keep your retirement (state pension ?)
in tact, which I believe you can't touch anyway until you retire. Good luck.