Just a thought experiment at the moment, and need feedback if it could work. The purpose of the following is to allow a way for Aussies to procure gold & silver effectively for free (but only when a US hyperinflation happens). A loan for $10000 is taken out in US dollars with a US banking institution over a period of 5 years, with the expectation of US hyperinflation in 1 or 2 years. 1% of the loan (ie $100USD) is used to purchase gold within the US. This gold will be used to pay down the loan once US dollar hyperinflates. The other 99% of the loan (ie. $9900USD) is wired to an Australian bank for the purpose of purchasing gold and silver bullion within Australia. For this to work would require an Aussie with dual citizenship, and also assuming there is a sufficient time delay for the inflationary effects to impact Australia.
Swift eagle I think you are partially right, but from the linked info http://travel.state.gov/travel/cis_pa_tw/cis/cis_1753.html it appears you must be born into or be given the dual nationality. I was using my minds example, Rupert Murdoch who renounced his Australian Citizen ship so he could become an American Citizen. So apologies to the OP, this is possible after all
Why would any gold need to be kept in the US? Just sell the coin in AU & wire the money to pay off the loan. I fully intend to use some more 2% transaction fee, -0- interest credit card loans to buy some more gold later this year. I just want to refinance my mortgage first and the interest rates are about right.
So you are going to use 1/20 oz of gold to pay down a loan of $10000 USD within 2 years? Sorry for seeming sceptical, but I am. If it reaches that stage you'd be better off owning some remote acreage, a bomb shelter and a self sufficient farm. I don't think any bank would give you a loan as long as you earn money in AUD, regardless of low interest rates, basically they are taking a punt on AUD/USD a lot more than your ability to pay off the loan. A lot can change in a year, suddenly your $10,000 loan ends up being nearly $20,000 just from currency movements alone. This is why people don't simply borrow from US lenders to buy Australian houses. Source:
You forget the IRS. You'll pay a very punitive tax on your Australian investments basically negating the whole thing. http://www.sovereignman.com/
The above plan assumes hyperinflation.. and once that becomes likely, then it will already be too late to execute it, as gold would have shot up in anticipation of the hyperinflation... There are many people controlling many billions with faster access to information than we have, that will be able to take advantage of any inflation arbitrage before we can, therefore erasing the potential arb before we can put money on it. Trust me, not every banker is ignorant of whats going down...
