Banks ready to fall? - Switch cash into silver?
Discussion
Following an inheritance I have around £100k to look after.
Tempting though it is to blow it on cars/beer/women etc I will most likely use it to move house in the next year or two.
In the meantime it's split between premium bonds, a cash isa, and a savings account.
My brother is in a similar position except he is prophesising the complete collapse of the global financial markets and advising that I put as much as I dare into silver , e.g. https://www.silver-to-go.com/en/silver-coins/brita...
He's an extremely intelligent guy and I respect his intellect greatly, however, he has of late exhibited a few too many tin hat type beliefs for my liking.
Is there actually a good argument for physically buying commodoties such as precious metals in order to safeguard one's savings or is it really a bit unneccessary?
Tempting though it is to blow it on cars/beer/women etc I will most likely use it to move house in the next year or two.
In the meantime it's split between premium bonds, a cash isa, and a savings account.
My brother is in a similar position except he is prophesising the complete collapse of the global financial markets and advising that I put as much as I dare into silver , e.g. https://www.silver-to-go.com/en/silver-coins/brita...
He's an extremely intelligent guy and I respect his intellect greatly, however, he has of late exhibited a few too many tin hat type beliefs for my liking.
Is there actually a good argument for physically buying commodoties such as precious metals in order to safeguard one's savings or is it really a bit unneccessary?
If it gets that bad i think having 100k in silver will be the least of his worries 
Where would he keep it? There's more of a chance of someone stealing his silver (pirates?) than a future financial crisis stealing his cash in the bank.
You get 85k protection per financial institution so just put it across 2 financial institutions and the full figure is protected.
Where would he keep it? There's more of a chance of someone stealing his silver (pirates?) than a future financial crisis stealing his cash in the bank.
You get 85k protection per financial institution so just put it across 2 financial institutions and the full figure is protected.
R8Steve said:
If it gets that bad i think having 100k in silver will be the least of his worries
Where would he keep it? There's more of a chance of someone stealing his silver (pirates?) than a future financial crisis stealing his cash in the bank.
You get 85k protection per financial institution so just put it across 2 financial institutions and the full figure is protected.
Reducing to £75k soonish, but easily resolved by splitting the investment across two banks.Where would he keep it? There's more of a chance of someone stealing his silver (pirates?) than a future financial crisis stealing his cash in the bank.
You get 85k protection per financial institution so just put it across 2 financial institutions and the full figure is protected.
Cash across a couple of Banks over that timescale is the right answer.
Commodities are generally in the toilet at the minute, China slow down and US$ strengthening.
If Silver was a good hedge against financials falling it wouldn't have fallen this week would it?
Oh! Hang on it has been you say....?
Buy your brother a big role of bacofoil
Commodities are generally in the toilet at the minute, China slow down and US$ strengthening.
If Silver was a good hedge against financials falling it wouldn't have fallen this week would it?
Oh! Hang on it has been you say....?
Buy your brother a big role of bacofoil
I have a fair chunk of physical silver and gold. Im one of the tin foil hat guys who thinks things will get a lot worse so I like to have all areas covered.
Silver has a 20% VAT on physical above the spot price, so youll be 20% down before you even started. I certainly wouldn't dump that much in to the physical silver market
Gold has no VAT. Youre supposed to pay CGT on Gold (Sovs are exempt) but if you buy less than £5K a year in physical you don't have to declare it. In addition if you just drip feed it back into the market no one knows what you paid for it years ago so how on earth do you work out CGT anyway.
Silver has a 20% VAT on physical above the spot price, so youll be 20% down before you even started. I certainly wouldn't dump that much in to the physical silver market
Gold has no VAT. Youre supposed to pay CGT on Gold (Sovs are exempt) but if you buy less than £5K a year in physical you don't have to declare it. In addition if you just drip feed it back into the market no one knows what you paid for it years ago so how on earth do you work out CGT anyway.
Edited by oldaudi on Tuesday 7th July 12:21
oldaudi said:
I have a fair chunk of physical silver and gold. Im one of the tin foil hat guys who thinks things will get a lot worse so I like to have all areas covered.
Silver has a 20% VAT on physical above the spot price, so youll be 20% down before you even started. I certainly wouldn't dump that much in to the physical silver market
Gold has no VAT. Youre supposed to pay CGT on Gold (Sovs are exempt) but if you buy less than £5K a year in physical you don't have to declare it. In addition if you just drip feed it back into the market no one knows what you paid for it years ago so how on earth do you work out CGT anyway.
Surely given the fact that there is effectively a 20% spread on silver straight away on top of storage costs/insurance (overlooking the fact that it has been on a downtrend for the past 4/5 years silver has got to be a pretty poor investment choice. I see no reason why you would want to hold physical commodities with this in mind. If you think the price is going to go up surely opening a CFD or spread bet would be better with a minimum spread, no concerns over storage/insurance and zero CGT issues?Silver has a 20% VAT on physical above the spot price, so youll be 20% down before you even started. I certainly wouldn't dump that much in to the physical silver market
Gold has no VAT. Youre supposed to pay CGT on Gold (Sovs are exempt) but if you buy less than £5K a year in physical you don't have to declare it. In addition if you just drip feed it back into the market no one knows what you paid for it years ago so how on earth do you work out CGT anyway.
Edited by oldaudi on Tuesday 7th July 12:21
I do own an OZ of physical gold but it is more of a novelty than an investment if i'm honest.
davepoth said:
Leave it exactly where it is. If the UK economy fails to such an extent that you don't get your money back in full through the compensation scheme, having a big pile of silver will not help you much.
Agreed. Sliver is only worth anything if we have a functioning economy. If the economy collapses then the most "valuable" things will be food and clean water. Shiny metal will not be a priority for anyone.
I have a 1 trillion dollar note in my wallet to remind me what the real value of money is
Rockatansky said:
My brother is in a similar position except he is prophesising the complete collapse of the global financial markets and advising that I put as much as I dare into silver , e.g. https://www.silver-to-go.com/en/silver-coins/brita...
I hope he didn't buy his silver when the prices were up at $50/oz a few years ago, otherwise he'd have had his own financial collapse.It's nice to collect in an "ooh, shiny" capacity, but that's about it really.
TheRainMaker said:
Not sure I would dump 100K into silver TBH.
It would weigh about 242kg
That's why it's such a crap investment, no income/interest, and to add insult to injury you have to pay someone to store the bloody stuff in a vault for you. It would weigh about 242kg
OP give me the £100k, in 7 years time I will give you £300k. That's 17% APR compound. It's tied up for 7 years though
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