jan_sebastiaan
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- Feb 8, 2020
- 2
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Hello fellow fastlaners,
I want to ask you for feedback on an idea, I won't go into specifics of my financial situation but I managed to get a government study loan with a 0% interest rate for the first 5 years (while I don't need/use any of the money) due to the fact that I have a reasonable income and keep expenses systematically low. I save this money on my bank account right now and it's not doing anything.
so I had the idea to leverage some of this debt in gold for 5 years, I do have equity but I don't want to invest more than 1,5 times my equity. The reason is that lately, I started researching the FED and ECB and the system banks in Europa where some banks are just in a terrible situation. and the FED just keeps jacking up the amount of money they insert into the banks and financial institutions in forms of bailouts. I also am convinced they are rigging the stock markets to finance this they print money like maniacs, so I want to protect myself against the inflation that is bound to come the next 5 years. My eyes opened when I looked into the financials of Chinese export companies and there reserves which are way TOO low! I personally am afraid that the events that are taking place in China right now are going to end up being a larger shock to markets than imagined. because the companies which stocks should tumble because their markets will face disruption are freaking rising.
I know the price of gold at the time is at extreme highs, but I feel there is no safer way at this time to store currency. So to conclude am I completely wrong? if so please tell me why. And if you agree with me please tell me why.
I want to ask you for feedback on an idea, I won't go into specifics of my financial situation but I managed to get a government study loan with a 0% interest rate for the first 5 years (while I don't need/use any of the money) due to the fact that I have a reasonable income and keep expenses systematically low. I save this money on my bank account right now and it's not doing anything.
so I had the idea to leverage some of this debt in gold for 5 years, I do have equity but I don't want to invest more than 1,5 times my equity. The reason is that lately, I started researching the FED and ECB and the system banks in Europa where some banks are just in a terrible situation. and the FED just keeps jacking up the amount of money they insert into the banks and financial institutions in forms of bailouts. I also am convinced they are rigging the stock markets to finance this they print money like maniacs, so I want to protect myself against the inflation that is bound to come the next 5 years. My eyes opened when I looked into the financials of Chinese export companies and there reserves which are way TOO low! I personally am afraid that the events that are taking place in China right now are going to end up being a larger shock to markets than imagined. because the companies which stocks should tumble because their markets will face disruption are freaking rising.
I know the price of gold at the time is at extreme highs, but I feel there is no safer way at this time to store currency. So to conclude am I completely wrong? if so please tell me why. And if you agree with me please tell me why.
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