A friend of mine suggested this several years ago, we all thought he was nuts, taking money out and paying it with interest in after-tax money. I ran into him again few days ago and he continues to think it was the best move he made. He has an economics degree and studied the numbers, his hypothesis is that with inflation coming, there will be no place to hide in any of the TSP funds and Gold will reach new highs and would be a great diversification and asset conservation strategy. I'd appreciate anyone thoughts, especially those with more experience and a better handle on the financial and economic side of various strategies?
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Take a loan and buy Gold?
- Thread starter cak165
- Start date
That's the part of the hypothesis I take issue with. The logic may be sound but I'm not sure basic premise is correct. Just my .02.
Oh yeah, pretty sure gold is in a bubble, you got be on your game and prepared to move fast once the inevitable happens.
Generally speaking my hypothesis is that the gold bubble will pop once the economy regains it's head, i.e. people pull money out of gold and actually start buying stuff (houses, cars, dinner's out etc.). I don't think we'll see any real inflation until that happens. We currently have reduced income, high unemployment and increasing savings rates. Energy and, as such, transportation is more expensive but that's not inflation that's a commodity.
Houses/properties are on sale not as glittery but if I was borrowing money I'd find an enticing market and place my bet there.
I totally agree it's in a bubble, but I thought it was in a bubble when it hit $1200. I guess my question regards the soundness of a strategy that pulls money from TSP through a loan and put it to work into another asset class. Same can be said about real estate, I presume. Many of my colleagues in the private sector can put money into a variety of funds including ETF's but TSP is so limited for us.
sillbeer
Member
There is plenty of people buying gold and silver right now, not just trying to sell the "overpriced" metal to you.
It's just like the stock market in the fact that it has it's ups and downs.
Personally I don't think now is a good time to invest in gold. My opinion.
Here is a great forum to read and even buy and sell.
www.bullionstacker.com
-Destin
It's just like the stock market in the fact that it has it's ups and downs.
Personally I don't think now is a good time to invest in gold. My opinion.
Here is a great forum to read and even buy and sell.
www.bullionstacker.com
-Destin
Birchtree
Well-known member
Gold was at a multi-year peak in 1980 when I bought my fifteen ounces at $800 each - but I have no plans to sell. So depending on your holding period a buy today could be positive. My $800 peak price did drop to $360 but I didn't care because I had some beautiful coins to admire and handle. My Grant Woods are probably getting rare as collectors items.
