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Discussion Starter #1
So, we all know with the government printing tons of $ it will result in extreme inflation (devaluation of the dollar). So, conventional wisdom says we should buy gold or other commodities that will retain value.

But here's another thought:

If I buy something that I want and take out a loan will this get me an edge on inflation? In other words, buy now at current dollar value, pay back at greatly deflated dollar value. Say I have a $50K loan on a boat and in a few years the dollar is worth 10% of what it is now. I will then have a $500K boat (less depreciation) that I only owe $50K on. Does this make sense?
 

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So, we all know with the government printing tons of $ it will result in extreme inflation (devaluation of the dollar). So, conventional wisdom says we should buy gold or other commodities that will retain value.

But here's another thought:

If I buy something that I want and take out a loan will this get me an edge on inflation? In other words, buy now at current dollar value, pay back at greatly deflated dollar value. Say I have a $50K loan on a boat and in a few years the dollar is worth 10% of what it is now. I will then have a $500K boat (less depreciation) that I only owe $50K on. Does this make sense?
Have you hit the bottle early today? LOL. Your basic premis is sound, but the example you used isn't. There are areas in the economy where your idea will work, the trick is identifying those areas. Energy would be a good example in my opinion.
 

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So, we all know with the government printing tons of $ it will result in extreme inflation (devaluation of the dollar). So, conventional wisdom says we should buy gold or other commodities that will retain value.

But here's another thought:

If I buy something that I want and take out a loan will this get me an edge on inflation? In other words, buy now at current dollar value, pay back at greatly deflated dollar value. Say I have a $50K loan on a boat and in a few years the dollar is worth 10% of what it is now. I will then have a $500K boat (less depreciation) that I only owe $50K on. Does this make sense?
Thats when you refi it for a half mil, blow the money on crap, then declare bankruptcy.

Have you learned nothing? It's the latest fad!!:D:D:D
 

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Discussion Starter #7 (Edited)
It may work if you take out the loan to buy a brick of gold. I think boat values are going to be down for while, especially when looking for a bank to finance one.
I'm just saying buy something that you would want to keep (so you don't have to worry about depreciation) on a loan instead of cash. Then buy gold with the cash and payoff boat with deflated dollars.

Another, opposite example: You loan someone $100 today. You could 100 packs of gum with it now. In a few years that $100 will only buy you 10 packs of gum. So it's like you gave someone 100 packs of gum but they only have to give you 10 back. Good deal for them, right?
 
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