So how do I protect my savings?
Discussion
Chainguy said:
Thanks Ozzie, good to know their's credance to both what he said and how it feels. Cars have never been cheaper, food never dearer, or so I think.
Gold it is then for the long term?
Gold is selling at a record high although it looks like it will keep going up in the short term.Gold it is then for the long term?
You could also consider gems and precious stones - also a lot easier to stash and carry around.
Although I don't know what the diamond market is like at the minute.
rs1952 said:
Chainguy said:
Something my cousin said to me the other week really hit home, that going out right now with a £20 in you wallet feels the same as it did going out 5 years ago with a £10 in your wallet. I think he's right, for me anyways.
Which in itself means nothing because it only takes into account part of the equation.F'rinstance, in terms of beer, your £20 will buy the same amount as 12s/6d (62.5p) would at the the time of decimalistion. But in those days, I was coining it in at £21 a week, and you could buy a decent house for £3-£4k.
You get my drift I presume?
98elise said:
over_the_hill said:
oyster said:
98elise said:
Gold if you think the currency will tank
If you don't think it will tank, then get a mortgage off set account. As long as you owe them more than your savings then they are protected.
Are you sure about that?If you don't think it will tank, then get a mortgage off set account. As long as you owe them more than your savings then they are protected.
If you have a £250k mortgage but £86,000 in the offset account, I'd assumed you are covered by FSCS for the £85k but you wose lose the £1k additional in the offset account as it is treated as savings.
They told me that they would be counted as one account, ie I couldn't lose the savings and still owe the mortgage. If the savings were held with another bank then that could happen.
Northern Rock didn't do offset mortgages I believe so you will have had one of their 'flexible fixed rates' whereby it was similar to Virgin - one big account. So if you had paid in £86K, you will have access to the £86K but won't owe it if all goes 'ping'!
Offsets are often not this. E.G. Accord/YBS offset will chase you for the debt and only protect the first £85K if all goes 'ping'.
There certainly were two types of offset, let's call them 'A' and 'B'.
A - were as above
B - the net debt is your liability.
You would need to clarify which you have or are looking at as it may make a difference.
IMHO, the UK/BoE will not allow a retail bank to go bust.
If the UK is insolvent (properly) then we are proper 'pinged'!!!
ps - This has never been tested!!! I believe that BoE guidelines are clear and that it should be 'net debt' but as I say, many are not on paper and it hasn't been tested!
Chainguy said:
Anybody think gold still has some way to go? I have the same concerns as the O.P.
Something my cousin said to me the other week really hit home, that going out right now with a £20 in you wallet feels the same as it did going out 5 years ago with a £10 in your wallet. I think he's right, for me anyways.
FWIW, I don't believe that the value of Gold is going up at all, it's the value of paper currency that is already tumbling due to QE/confidence issues.Something my cousin said to me the other week really hit home, that going out right now with a £20 in you wallet feels the same as it did going out 5 years ago with a £10 in your wallet. I think he's right, for me anyways.
The "price" of paper money can fall to virtually zero if the issuing authority really screw it up.
Helicopter123 said:
FWIW, I don't believe that the value of Gold is going up at all, it's the value of paper currency that is already tumbling due to QE/confidence issues.
The real price of gold has risen massively since Gordon Brown sold off the UK reserves at $275 and ounce - now c.$1,600. Inflation has been nowhere near as steep.Still wouldn't touch gold myself.
But IMO you are right, government actions and debts are calling into question the whole "value of money". I'd focus on things people really need - food, water, shelter, energy. You can't eat gold and it's too heavy to carry around with you!
Ozzie Osmond said:
Helicopter123 said:
FWIW, I don't believe that the value of Gold is going up at all, it's the value of paper currency that is already tumbling due to QE/confidence issues.
The real price of gold has risen massively since Gordon Brown sold off the UK reserves at $275 and ounce - now c.$1,600. Inflation has been nowhere near as steep.Still wouldn't touch gold myself.
But IMO you are right, government actions and debts are calling into question the whole "value of money". I'd focus on things people really need - food, water, shelter, energy. You can't eat gold and it's too heavy to carry around with you!
Ozzie Osmond said:
You can't eat gold and it's too heavy to carry around with you!
Well, you can't eat it, but you can exchange it for food, and 1kg of gold is currently worth about £33,500, so it's actually a pretty compact store of value at the moment. I'm still not sure I'd buy now, however; it's a very volatile investment and the buy/sell spread on bullion coins is about 8%, so the price would have to rise by another 8% and stay there at the time you cash out for it to be a worthwhile investment.NS&I accounts
HSBC account
Gilts would be my bet at the moment
Helicopter123 said:
Muntu said:
So how does one go about buying gold then?
But Krugerrands or similar coins from a reputable dealer./gold noob
Muntu said:
Is there some kind of acreditation scheme for dealers so potential buyers can have some degree of assurance that their chosen vendor is reputable?
/gold noob
Better still just buy ingots as there is already a "value added" mark up factored into the price of coins. Whereas ingots are just a small (or not so small) brick of certified gold./gold noob
over_the_hill said:
Muntu said:
Is there some kind of acreditation scheme for dealers so potential buyers can have some degree of assurance that their chosen vendor is reputable?
/gold noob
Better still just buy ingots as there is already a "value added" mark up factored into the price of coins. Whereas ingots are just a small (or not so small) brick of certified gold./gold noob
Muntu said:
So how does one go about buying gold then?
I have used these chaps and they are pretty good. They sell (and buy) coins and ingots.http://www.goldline.co.uk/
Bluebarge said:
I have used these chaps and they are pretty good. They sell (and buy) coins and ingots.
http://www.goldline.co.uk/
No VAT on gold ingots, but 20% on Platinum, Silver and Palladium?http://www.goldline.co.uk/
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