Should Student Debtors Buy Silver?

Student debtors buying either gold and/or silver per a “defensive financial portfolio” aimed at lessening the hazard of “personal economic warfare” would be much better off than one whose portfolio did not even maintain purchasing power. 

Nearly 1 and 5 households carry student debt.  Pew Research from earlier in the quarter showed that 22.4 million households, or 19 percent, held college debt in 2010, doubling the 1989 amount, and increasing 15 percent since 2007. That means the biggest three-year increase in student debt in more than two decades



9 comments on “Should Student Debtors Buy Silver?
  1. jischinger says:

    It can’t be paid, even with a life time of slavery
    so it has to be forgiven or students will have to leave the country

  2. Max Power says:

    Well, this little news story at least adds some merit to the idea being of some utility in NZ

    ANZ says “ongoing offshore demand” for New Zealand government bonds, and especially inflation-indexed bonds, may tempt the New Zealand Debt Management Office (NZDMO) to switch issuance away from the nominal issues, and toward more inflation-indexed bond issues.

    In a research note ANZ says New Zealand’s inflation-indexed issues may soon qualify to be part of the two Barclay’s Global Inflation-Linked Bond Indices.

    To be in them, the NZDMO needs to have at least US$4 billion on issue, about NZ$4.9 billion. Currently it has NZ$3.7 billion outstanding. With the announced intention to tender at least NZ$100 million per month from February, ANZ says it expects these NZ issues to qualify for the Index “comfortably” by late 2013 by when NZ$4.9 billion worth will have been issued.

    “We view this as a huge positive for the NZ inflation-indexed bond market,” said Carrack Lucas, a strategist at ANZ. “Active global inflation investors may not immediately wish to gain exposure to the NZ linker market given an estimated World Government Inflation-Linked Index (WGILB) weighting of around 0.22 percent, but there will no doubt be solid interest from passive global inflation funds that are mandated to match global benchmarks.”

    “We continue to view real yields on the NZGBi Sep-2025 inflation-indexed bond (currently 1.58 percent) as a stand-out investment for global inflation funds, especially in light of the negative real yields on offer in US and UK markets,” he said.

    Last month the NZDMO borrowed NZ$2.5 billion through its first issue of inflation indexed bonds in 13 years in what was the biggest single deal the government’s debt manager has ever done, topping previous $NZ1 billion bond tenders.

  3. confused says:

    The Amount of Gold recovered netted the Govt a net gain on the losses, He should have turned all the cash into gold.

  4. Mini US says:

    Just saw latest Bond film which was saved by Javier Bardem, whose name was Silva.

    He certainly plays a great weirdo, or maybe he was the normal one 😉

  5. Bruce says:

    But, based on official data as this chart is, the true story is that amount of student debtors delinquent is probably something more along the lines of 22-25%. Any student debtor household should seriously look into a silver investment to hedge a negative position such as via student debt.
    I wouldn’t recommend silver as an investment to anyone who can’t handle the volatility. It can cause unnecessary grief to many people who don’t have the right mindset about investing in it and it probably causes lots of unnecessary stress when it dips.

    With that said, it may help.
    Or may not.

    That article has a great cartoon image.

  6. Banking Thiefs says:

    @jischinger, US student debt is a “special” kind of debt, it can never forgiven, and there are no legal protections. If you refuse to pay, you are blacklisted from taking government work. Not sure how it works if you renounce your citizenship and leave the country, but I suspect the debt collectors will hound you into the grave, because there is no legal protection.

  7. Dustbowl Daze says:

    One of the reasons I own silver is to help pay of my wife’s student loan from going to a for-profit art college during her mid-life crisis.

  8. Muffinman says:

    I’m a student over at Imperial College London. Built up 25KG of silver to my name through hard work! Hopefully will add some more to it soon.

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