I would like to know if is safer to keep all my savings in a high interest fixed rate bond or buy gold with all the money and keep it until the price
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880MikeGG1 postedNeither!
You should not have all your eggs in one basket. It is not safe to do so. You don't know how the markets will change. You might make a killing but you might lose a lot.
You should have 3-6 months net pay in an account or accounts with access within a short period.
You should not have more than £85,000 in any one group of financial institutions. £170,000 for joint accounts.
You should not have more than 5% of your total investments (including your own property) in commodities of all types and not more than 2% in any one commodity. Commodities include precious metals, jewellery, coffee, cocoa, oil, etc.
Bear in mind that there is no interest payable on gold, etc.
The Spanish banks are being bailed out so that problem has gone away for now and the polls in Greece seem to be indicating a shift back to the right so they may not leave the Euro.
Mike
Posted on 11 June 2012 |
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40Arblaster posted
Your problem is that you are regarding gold as something that will go up in price. What is actually happening is that gold is maintaining its value, and the fiat currency is losing its value, not the other way around. The classic defence against inflation throughout the ages has been the purchase of hard assets, and gold has been a favourite. Land and property, too. But hard assets can also be anything that is not perishable that you are going to use: toilet paper, soap, razor blades, rice, pasta etc.
I cannot advise you what to do. I can tell you what you what I am doing. I am buying hard assets. I will not be buying long term bonds.
Posted on 11 June 2012 | Love 3 loves
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174JoeEasedale posted
Mike is right - the key thing is to diversify into many asset classes. No more than the £85000 FSCS guarantee held with any one bank group.
I am a fan of physical gold but a holding of 2% of net assets satisfies safety imho. I never hold more than 5% of my assets this way, and would consider an absolute maximum to be 10% if a crisis of currencies looked imminent. (which it probably won't, till it collapses and it is then too late).
Property is probably an asset where more than 10% is ok - you can always live in it, whatever the value. Art - can have a place, shares in commodities such as oil companies I like, and shares in companies that are likely to go on selling "stuff" in any crisis can be good. Example, Shell BP Greggs.
Some cash on deposit is good - it allows you to pay the bills and take advantage of a new opportunity.
Your pension may have a place in the overall strategy of diversification - I am not a great pension fan other than of final salary type schemes, but they can have a place.
But however you do it - diversify.
Posted on 12 June 2012 | Love 0 loves
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174JoeEasedale posted
Be wary of the £85,000 limit with one institution. The figure is in fact 100,000 Euros. The recent fall in the Euro has lead many to suggest the guarantee is now worth only £80,000
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This is nonsense. If the deposit is guaranteed by the British FSCS the guarantee is £85000. Some foreign banks on the passport scheme have a euro equivalent but if the bank group is registered FSCS the euro plays NO part in the guarantee.
Posted on 12 June 2012 | Love 0 loves
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880MikeGG1 posted
You are both correct on the £85,000 limit as it was originally set based on €100,000. However, there would have to be a period of notice for the limit to change and it is not very likely to decrease. It would be more likely that the € limit would increase.
However, it would be better to spread across more groups because it could take a while for payments to be made if a big institution folded. With more spread you would have assets available elsewhere pending a delayed payout.
Mike
Posted on 12 June 2012 | Love 0 loves
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