Thread: Take a loan and buy Gold?

Originally Posted by cak165

with inflation coming

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.

If gold is so great then why is everyone trying to sell it to you? It's overpriced, over pimped, and like everything it will have it's end. JMHO

Originally Posted by JTH

If gold is so great then why is everyone trying to sell it to you? It's overpriced, over pimped, and like everything it will have it's end. JMHO

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.

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

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.