Which do you think will be better over next 2 years ?

TRUSt_NO_1_2

Putting my money in a 8% fixed income account with a high street bank
or buying physical silver (in an 'allocated' account-Goldmoney.com) ?

I am wary about the potential of risk, as I view banks as being very risky.

Aegis

You think banks are risky compared to investing in a single commodity? I think there's something very wrong with your understanding of the word "risk".

cheerfulcat

These are two wildly different options. On the one hand, a savings account, on the other, an account holding an allocated amount of silver. The savings account, assuming a fixed rate applies ( I'd love to know who offers 8%, btw ) offers a known return. The silver account does not - it is pure speculation on the future price of silver. That's one sort of risk.

Another sort of risk - of the institution holding your money going bust/running off with your money - applies to both options, though the savings account is presumably covered by the FSCS.

If you are that worried about keeping your savings secure, you'd be best off buying gilts. If you want to do this in a totally risk free way, you'd need to buy them directly from the DMO and hold them in certificated form. Bear in mind that returns on your money, whatever way it is invested, are generally based on risk - the less risk you take, the less you are paid.

amcluesent

IMHO, if you really think a total banking collapse is possible, then it's madness to have your bullion under the control of a 3rd party as there will be a systemic failure.

Keep your silver, spam, candles, torch etc. buried in the back garden!

TRUSt_NO_1_2

amcluesent wrote: »

IMHO, if you really think a total banking collapse is possible, then it's madness to have your bullion under the control of a 3rd party as there will be a systemic failure.

Keep your silver, spam, candles, torch etc. buried in the back garden!

Indeed.If (when) the 5hit hits the fan in Western financial system it will be every man for himself and the banks will shut their doors/websites.Any associated (bank dependant) institutions will do likewise.

Right now I'm invested in gold/silver stocks,hoping to make enough to pull out
and sit out the coming storm.

If I invest in physical silver (unless I find a better investment potential),I will take delivery...no 3rd parties.

As far as "giving" any money to a bank...no thanks.

Just wanted to post about silver and get a response,as most of my silver posts are removed.

Aegis

TRUSt_NO_1 wrote: »

Just wanted to post about silver and get a response,as most of my silver posts are removed.

That's because you jump in and recommend it with no regard whatsoever for people's attitudes to risk. More often than not, you totally gloss over the fact that commodity investing is high risk even when compared to most other investment asset classes, as we can clearly see by the recent problems with gold following your constant recommendations of it as a short-term investment (20% loss at one point to people who bought in at the recent high and may have panic-sold at the low point because they didn't appreciate the risks). Commodities are an extremely volatile investment, and they are simply unsuitable as a direct investment for the vast majority of people who come on to this forum asking for help.

Of course, that's beside the point. The rules of this forum state that you're not allowed to make specific investment recommendations, and you constantly do so. The fact that your "advice" often ignores such matters as risk profile just makes it even worse.

[Deleted User]

One more gold or silver post and I think I'll go potty!

jon3001

Aegis wrote: »

More often than not, you totally gloss over the fact that commodity investing is high risk even when compared to most other investment asset classes, as we can clearly see by the recent problems with gold following your constant recommendations of it as a short-term investment (20% loss at one point to people who bought in at the recent high and may have panic-sold at the low point because they didn't appreciate the risks). Commodities are an extremely volatile investment, and they are simply unsuitable as a direct investment for the vast majority of people who come on to this forum asking for help.

'Short-term investments' are usually just speculation.

Investors utilising a commodities index fund (e.g. FAIG) or managed fund (e.g. Marlborough ETF Commodity Fund Accumulation) should see long-term growth and volatility similar to that of an equities index/fund. Dow Jones has index data going back to 1991 for those wish to do further statistical research.

Another major benefit of such investments is that they're uncorrelated with other asset classes such as stocks. So an allocation in an stock-heavy portfolio will reduce the portfolio's overall volatility. Literature such as Gibson's 'Asset Allocation' recommend up to 20% allocation here of the portion of the portoflio not invested in bonds for those wanting maximum diversification benefit. i.e. In a 70/30 porfolio (70% 'higher risk investments'/30% bonds), 14% (70 * 0.2) would be allocated to commodities.

I suspect most people's portfolios are stock-heavy and diversification into other asset classes can be of major benefit.

This asset class is also positively correlated with inflation which is real issue right now.

Aegis

jon3001 wrote: »

'Short-term investments' are usually just speculation.

Investors utilising a commodities index fund (e.g. FAIG) or managed fund (e.g. Marlborough ETF Commodity Fund Accumulation) should see long-term growth and volatility similar to that of an equities index/fund. Dow Jones has index data going back to 1991 for those wish to do further statistical research.

Another major benefit of such investments is that they're uncorrelated with other asset classes such as stocks. So an allocation in an stock-heavy portfolio will reduce the portfolio's overall volatility. Literature such as Gibson's 'Asset Allocation' recommend up to 20% allocation here of the portion of the portoflio not invested in bonds for those wanting maximum diversification benefit. i.e. In a 70/30 porfolio (70% 'higher risk investments'/30% bonds), 14% (70 * 0.2) would be allocated to commodities.

I suspect most people's portfolios are stock-heavy and diversification into other asset classes can be of major benefit.

This asset class is also positively correlated with inflation which is real issue right now.

Certainly agree with the idea of diversification and investing in commodities through collective funds rather than picking individual ones out myself. I have the MFM ETF Commodity fund in my own portfolio at the moment, and it's part of the reason why my portfolio has been hit less heavily than some in the recent market turmoil.

I really don't have anything against the idea of investing in commodities, but I have real issues with people suggesting it as a single solution to damn near any investment (or even savings) need.

TRUSt_NO_1_2

Aegis wrote: »

You think banks are risky compared to investing in a single commodity? I think there's something very wrong with your understanding of the word "risk".

The laws of probabilty define risk.
I understand the laws of probability.
Some events are more likely to occur than others.Looking back at history,as that often gives the best clues to probable outcome,is a good start.

eg . ..There is no such thing as an accident.It is merely a series of unprobable events occuring, sometimes simultaneouly, sometimes consecutively.

Right now I would go with a single commodity (even though I'm in both gold and silver,via several mining companies..to spread risk ! ) as opposed to another single avenue of investment..the financial sector.
Even a diverse investment portfolio via a bank could leave you stranded financially (please do not quote financial insurance).

A bird in the hand...

LongTermLurker

TRUSt_NO_1 wrote:

If I invest in physical silver (unless I find a better investment potential),I will take delivery...no 3rd parties.

Wow, that, in itself, suggests an unacceptable level of risk to most folk, unless you have a few well-trained guard-lions and a damn big safe to store it all in.

TRUSt_NO_1 wrote: »

Right now I would go with a single commodity (even though I'm in both gold and silver,via several mining companies..to spread risk ! ) as opposed to another single avenue of investment..the financial sector.
...
A bird in the hand...

Assuming all the banks and every major Western government went into liquidation, who will have the money to buy the silver? All the industrial users have presumably collapsed because their banks and their customers have collapsed, so there's no market left that way, and all you have is a cellar-full of silver?

I'm confused

Which do you think will be better over next 2 years ? Putting my money in a 8% fixed income account with a high street bank
or buying physical silver (in an 'allocated' account-Goldmoney.com) ?

In answer to your question, I think the 8% account (where? where? I only know of ones with a maximum balance of £3000 or £6000 and then it has to be drip-fed) over the single commodoty