[KevinR]

Hi I currently have half of this year's student loan along with some of my own money sitting in my bank account, and I want to switch it into gold, though my parents don't really think it is wise. My mom is a co-signer on the loan...and she says "The money we have in the bank is federally insured."

I don't know how to convince them, but I want to get my money into gold before it becomes worthless :[

 

[larmus]

see if she would be willing to do at least half in gold and show her that gold is only going up in cost, so in the long run you will be making money. jmo

 

[Mama Bear]

Hi I currently have half of this year's student loan along with some of my own money sitting in my bank account, and I want to switch it into gold, though my parents don't really think it is wise. My mom is a co-signer on the loan...and she says "The money we have in the bank is federally insured."

I don't know how to convince them, but I want to get my money into gold before it becomes worthless :[

Given you are talking student loans- I assume you are an adult and in college- that being the case I will continue under that assumption.

Personally- I'd advise leaving the school loan funds in the bank- they will either be perfectly fine and used to pay said loan as usual via the convenience of modern banking- or it won't matter because if TSHTF you won't be going to school anyway. Essentially, those funds are neither yours OR your mothers- they are the banks (or- the lenders, depending on the source)- so leaving them in the bank makes sense. The only way those funds would matter is if you are assuming TS is going to HTF and you're trying to take that money for personal use- but remember- you're still going to be on the hook for the loan. SO- If you're going to do anything- I would NOT convert those funds into gold, I would choose plain old cash OR a foreign currency that is stable. (MHO). You're not going to go into the bursars office and hand em a gold bar and say "here's my student fee payment"... Student loan funding has a high turnover- meaning- it won't be in your hands very long anyway- so it's pretty much irrelevant. And it seems to me (and I may be wrong) but it seems that converting foreign currency into US currency is far easier than converting gold into cash reliably- AND currently the price on gold is high- the idea with investments is to buy *low*, *sell* high... If you were set on conversion to metals- I'd go with silver as you can get smaller increments for more functional transactions- that is if you're thinking of using it for currency in a SHF scenario. Although I'd also argue that tangible assets would be even more valuable- things like coffee, food etc. Again- I could be wrong- but that's what I'd do.

Given that your mothers name IS on the loan- out of respect and as a matter of trust- I *would* discuss whatever you are going to do with her. If you're concerned about the reaction- it may do you well to find a trusted adult that your mother respects who shares your viewpoint to sit down and mediate.

I'd advise you to respect your mother and her wishes- but I'd also state that you are an adult (assumedly) and as such are now allowed to make your own decisions regarding your own financial matters. However- if you default on your loan or otherwise put your mothers name at risk- she's gonna kill ya, and rightly so.

 

[KevinR]

then which currency would be best?

(and all of my money is going into preps, i'll make a thread with pictures when everything comes in the mail.)

 

[Rockhound]

I agree with mama bear. Your money is protected by the FDIC up to $100K.

 

[Mama Bear]

I agree with mama bear. Your money is protected by the FDIC up to $100K.

... Unless the FDIC fails.... Which- given the current situation.... Put it this way- if the insurers have no money- how do they pay out their holders?

However- in this case- the lender and the school already have claim to the school funds (the lender "owns" the funds- until they get passed off to the school- but in either case they aren't the OP's.) This situation is like putting ones mortgage payment into gold and silver... Which *might* be OK- but then again- it might not... Having that much gold/silver just laying around at this point is something that- sure- it's good- but that is when all of that isn't earmarked for something.... What happens when that gold/silver is stolen and the kid is left hanging for the school loan payment? Not a good situation. Granted- bank failure isn't a good situation either- but at least one can document that and say "Look, School- I had my money in the bank- but the banks failed- I had every intention of paying- look at my account balance" Whereas "OK, School, I had (X-number of) gold bars under my bed waiting to pay you, but the bad guy broke in and stole them...." doesn't come off so well... And won't until TS has been laying around post-fan for a little bit of time... MHO.

Now- granted- the OP could convert the funds into gold/silver and then sit on it until the school demands payment (which probably isn't at all long) so then the OP has the hassle of converting the gold *back* into bank funds or possibly cash to pay the school... I guess alot depends on when the money is to be paid to the school. Further- toting around that much gold/silver to do these conversions is pretty risky in and of itself. (And where do you even DO that? Convert gold/silver to cash other than a shady "we buy gold" dealer? That sort of thing is fine in an actual SHTF situation- but now? When we're still doing things pretty normally and just peering over the edge of that cliff? .... Not really a risk I'd be at all comfortable taking.

 

[Mama Bear]

then which currency would be best?

(and all of my money is going into preps, i'll make a thread with pictures when everything comes in the mail.)

If it were me? I'd go with a combination between Canadian dollars (nearest country to my location if I were to try to bug out of the US), the Euro and the Swiss Franc (for stability- the euro because it's not dependant on one nation, the Franc because Switzerland is generally a neutral country if anything major worldwide were to occur). But- others have been looking at this far longer than I and may well have some better answers there.

Also- given the immediate instability and concern- I wouldn't place any more orders to be shipped than you have already... Buy local if and when you can. Things change daily and if something major were to occur anything in transit would be affected. Granted- I think right now you're OK- but ya never know what Monday's market opening will bring...

 

[Grinnan Barrett]

Leave your money in the bank. This is from a guy who owns gold and silver. Right now is not a good time to buy. It is like buying a home. Don't buy at teh top of the market. When I bought my first gold it was under $200 an ounce. Right now prices are ridiculous. You could take a major hit on your investment. YOu will need access to your student loan and don't want to mess with that. Get your education. We need educated Survivalists. Young people are our future. Any market fluctuation and you could get wiped out. Stick with FDIC.

Hi I currently have half of this year's student loan along with some of my own money sitting in my bank account, and I want to switch it into gold, though my parents don't really think it is wise. My mom is a co-signer on the loan...and she says "The money we have in the bank is federally insured."

I don't know how to convince them, but I want to get my money into gold before it becomes worthless :[

 

[FredLee]

Pay the student loan money back onto the loan.Work to pay the rest of the debt off.GET OUT OF DEBT.This is exactly why the country is in a financial mess.People trying to move money around,borrow here,spend there. The old fashioned work ethic is still the best plan.If you have to borrow money to go to school,that means you can't afford it. If the economy doesn't tank,that student loan debt will drag behind you like a mighty anchor.Listen to Dave Ramsey for a while. EVERY DAY,there's people calling for advice,and a big percentage of the callers debt is student loan. I've got guys working for me who still pay on old student loan debt,but never even finished school.Crazy.

 

[Dwind]

then which currency would be best?

(and all of my money is going into preps, i'll make a thread with pictures when everything comes in the mail.)

My fiance inherited some property overseas that was sold off recently- a few years ago she'd asked for it to be in US Dollars. As it is she went for Euros.

FDIC insures accounts up to 100K. For significantly larger amounts, anyone think that a Swiss account would be safer, or when SHTF will it knock over the whole world?

 

[Grub]

Unfortunately many european economies are directly connected with the success of ours because they invest so strongly in assets within our market.. so yes if the US crashes it will impact EVERYONE negatively, not just the US.

You have to remember, we live in a much larger global market than we did back in the crash of 29.

 

[Mama Bear]

Unfortunately many european economies are directly connected with the success of ours because they invest so strongly in assets within our market.. so yes if the US crashes it will impact EVERYONE negatively, not just the US.

You have to remember, we live in a much larger global market than we did back in the crash of 29.

Very true. This is why if I'm trading currency I want to diversify between a few different currencies. Some metals, some variety of other national currencies, some tangible barter items... Worst case scenario- all the economies tank and the currency is worthless. So I'd still have metals and barter items. Gold goes the way of the Great Depression and it's illegal for private ownership? I still have currency and barterable items... Diversification, baby

 

[rridgeoutlaw]

If our economy crashes other currencies won't matter either. If the banks have no money where are you going to trade currencies? you going to fly to some country in Europe and trade? Just curious, not starting a arguement.

 

[KevinR]

I'd advise leaving the school loan funds in the bank- they will either be perfectly fine and used to pay said loan as usual via the convenience of modern banking- or it won't matter because if TSHTF you won't be going to school anyway.

I'm going to go with this. Though I'm going to look into trying to pay the school for next semester in advance if I can.


And for Fred, I don't currently make enough money to pay for school without a loan, since my parents don't want to help with the payments. I'm currently paying for everything myself, with the little extra money going towards preps.

 

[Mama Bear]

If our economy crashes other currencies won't matter either. If the banks have no money where are you going to trade currencies? you going to fly to some country in Europe and trade? Just curious, not starting a arguement.

If our economy tanks that badly? Yes. It's part of my bug out plan to be able to get out of dodge if need be as one of my options. I don't want to have the bags, tickets and the passports and no resources once I get there. We've got friends in various parts of the world- and- we're so close to the Canadian border- that it's not a far jaunt to get there even by car- so I figure Canadian currency may be useful.