LOAN

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goran21's picture
goran21
Status: Member (Offline)
Joined: Jan 20 2009
Posts: 2
LOAN

 

here is my question: lets take I have 20.000 bank loan with fix rate - per year is 6,5% for 10 years from now. People talk about hyperinflation in next 5 years. If I invest half of my loan money in gold now, then later when hyperinflation will take place, gold will be high priced becouse of the dropping value of money and other stuff.  Is it logical that my 20.000 eur loan will be much more worthless then it is now but my gold will be sky high. Sell a litle of my gold then to pay a loan back?

Farmer Brown's picture
Farmer Brown
Status: Martenson Brigade Member (Offline)
Joined: Nov 23 2008
Posts: 1503
Re: LOAN

Sure, if you can get a FIXED rate loan, I'd say back up the truck and get all you can.  Let me know where you can get a loan like that!

goran21's picture
goran21
Status: Member (Offline)
Joined: Jan 20 2009
Posts: 2
Re: LOAN

I am from Slovenia...here we have fixed rate and variable rate influanced by inflation..we can chose...where are you from? what kind of loans the bank offer you in your country...they cancled fix rate?????

Farmer Brown's picture
Farmer Brown
Status: Martenson Brigade Member (Offline)
Joined: Nov 23 2008
Posts: 1503
Re: LOAN

I'm in Costa Rica.  There are no fixed loans here at this time as far as I know.  If there are, they are probably at very high rates.  Again, I agree with your concept, as long as it's fixed.

EndGamePlayer's picture
EndGamePlayer
Status: Platinum Member (Offline)
Joined: Sep 2 2008
Posts: 546
Rather than loan funds . .

Rather than take on risks associated with borrowing money, try spending the funds you would have paid on a loan toward your investment of gold, oil, long term goods (which hyper-inflation will turn into luxuries) or whatever investments work for you. Borrowing money to make money is insane. EGP

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