I'm on a roll today! I just uploaded a really cool article about Gibraltar
Dog Gold Coins and am now thrilled to answer
a Gold Why question! I couldn't be more excited about the question today because it's really fundamental to my entire
purpose for creating this website and investing in gold bullion. I have a huge backlog of Gold Why questions and am trying
to power through one of them each and every week going forward. If you asked a question, I want to sincerely thank you and
let you know that the answers are coming (thanks so much for your support and patience). And now, without further ado, today's
awesome Gold Why question...
©iStockphoto.com – adventtradventtr
Question: If the dollar crashes and we have to return to the gold standard, will my mortgage on my house disappear
since my mortgage is based on the dollar?
Answer: I love this question. It's a very complex question and one that opens a discussion that could
be debated for hours. In my answer today, I'm going to focus on the specific question, and also my broader theories around
gold bullion coins and mortgage loans (I am a homeowner after all and both are topics are always top of mind). First and
foremost, I don't think we're going back to the gold standard. I think it would be great, but the fact of the matter is
it's not practical given the amount of gold in our world today. There's not enough gold in the world to cover the national debt
of the United States ($14.3 trillion and growing). Also, changing political strategy is like steering the Titanic - changing the
mode of thought in Washington and championing support around a gold standard (in my opinion at least) seems impossible. Now,
don't get me wrong, I would love to go on the gold standard and am a huge fan of
Ron Paul. I even think we can have a partial
gold standard where we back the dollar with at least a little gold. That said, I just don't think it will happen.
I Do See Continued Inflation Ahead
Now, even if we don't go onto the gold standard, I do think the price of gold
is well poised to continue appreciating. Gold is currently at $1,493 per troy ounce and I first started buying back in the $500 range.
My returns have been tremendous (better than any other investment I have made) and I see much higher prices ahead. As our national
debt keeps growing and we keep printing more money to pay our bills, inflation has nowhere to go but up (in my opinion). Gold is
just about the best investment around and I recommend checking out my top 10
reasons to buy gold coins. Reason 7 is all about inflation. In short,
I see inflation continuing and I see the price of gold bullion appreciating (a lot) over the long term.
Let's Pay Off Our Mortgages With Gold Bullion Coins!
Here's where it gets really interesting. If you're locked into a fixed rate mortgage (like myself), your monthly payment will never go
up. Also, property taxes stay steady too (at least where I live) and are based on your home's purchase price. Now, let's think about
the inflationary scenario we're in... Inflation is here to stay. Gold coins will keep appreciating (in my opinion). However, your mortgage payments
will stay flat. My goal in life: Pay off my home mortgage loan in gold bullion coins. I truly see this as a possibility and it's my ultimate
financial goal. I think this will certainly take a lot of time (and I'll need more gold coins that I have now since I'm a smaller time gold
investor) but I do see this as a possible reality. Now, maybe I won't pay off the entire mortgage loan in gold, but I feel like I can
definitely make a dent. I'm not an investment advisor and have that disclaimer at the bottom of each page on this site. In my personal
situation, however, I have chosen to buy gold coins and also purchase a home with a fixed mortgage. I view this as a sound strategy, especially
with today's depressed real estate prices. Thanks again for the question, it was an awesome one!
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