Saberu Posted August 31, 2011 Share Posted August 31, 2011 While the goldbugs are right about money dying, what they have failed to realise is that debt, under the right circumstances (e.g. being perpetually rolled over using an irredeemable currency), never dies. Assuming this configuration stabilises gold will also stabilise as an asset class, somewhere in the region of 300 loaves of bread. Sometime after that I imagine gold would then be only bought for jewellery and ultimately be discarded as an asset class altogether. As long as rich people around the world use gold as a store of wealth it will always at least maintain it's value, it's also much easier to store than cheaper metals. Though silver would be a good gold alternative. I don't agree with your analogy that gold will be worthless because of it's utility value perhaps being lower than price. Quote Link to comment Share on other sites More sharing options...
winkie Posted August 31, 2011 Share Posted August 31, 2011 ...starting debt young now days....would it be possible to add the student debt, car debt and fuel debt onto the 50 year mortgage debt...then roll the debt over to the next generation, creating an even bigger deficit. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted August 31, 2011 Share Posted August 31, 2011 An interest only mortgage is effectively an infinite 'repayment' mortgage if you keep rolling over the debt. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 31, 2011 Share Posted August 31, 2011 An interest only mortgage is effectively an infinite 'repayment' mortgage if you keep rolling over the debt. But with a commitment to "buy" at the price agreed when the mortgage was taken out, which may, or may not, be an advantage. Quote Link to comment Share on other sites More sharing options...
Agentimmo Posted August 31, 2011 Share Posted August 31, 2011 40yr mortgages are already here in the UK. I know some friends who bought when they were 23yrs old. Took out a 25yr mortgage in the 80s. A few years ago, they traded up and to make the next step, extended their mortgage. By the time they pay it off, he will be 65 and will have been paying a mortgage for 42yrs. Other friends who bought in the 80s have done the same. I don't know anyone who has paid off their house yet..... Quote Link to comment Share on other sites More sharing options...
eric pebble Posted September 1, 2011 Share Posted September 1, 2011 40yr mortgages are already here in the UK. I know some friends who bought when they were 23yrs old. Took out a 25yr mortgage in the 80s. A few years ago, they traded up and to make the next step, extended their mortgage. By the time they pay it off, he will be 65 and will have been paying a mortgage for 42yrs. Other friends who bought in the 80s have done the same. I don't know anyone who has paid off their house yet..... Quote Link to comment Share on other sites More sharing options...
copydude Posted September 1, 2011 Share Posted September 1, 2011 If a 22 year old could take on a 40 year mortgage for a family home (rather than a two-bed terrace) and work until 67, isn't that similar to how things were until recently? Possibly, but trends show that people's working life span is shortening. At one end, there is steeply rising youth unemployment and the lengthening time for even grads to get a job. At the other end, statistics show that over 50s are increasingly becoming no-hopers and joining the long-term unemployed. If you want to throw another statistic in, there's the ever rising average age of the First Time Buyer. What is it now, 38 or something daft? I'd say the idea is completely disconnected from reality, but then I'm not an 'expert'. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.