Safest place to put your money suggestions

novazombie

Now that the banks are not safe anymore what other suggestions are the safest with the best possible return?

My number 1 suggestion is Gold and Silver, but gold has gone up just now where as silver has gone down and not gone back up yet.

But here in the UK you have to pay VAT on physical silver and you have all the risk about corrosion or theft/loss ect.

So I have put a large portion of my portfolio into Perth Mint Silver certificates. I got a very good price of $10 per ounce (at time of writing). There is no ongoing charges for storage insurance etc. Yet it is insured by the Oz government.

Not long ago it was more than double that and I have read reports predicting over $50+ per ounce in the future.

RDB

Nothing is `SAFE` anymore. Yes PMSC (Perth Mint Silver Certificates) are one of the safest but even the Australian Government isn't immune if the entire financial system goes down. You are better off with silver in your safe at home.

It wont be cheap for long there is a shortage so the price is ready to surge any day now.

novazombie

RDB wrote: »

Nothing is `SAFE` anymore. Yes PMSC (Perth Mint Silver Certificates) are one of the safest but even the Australian Government isn't immune if the entire financial system goes down. You are better off with silver in your safe at home.

It wont be cheap for long there is a shortage so the price is ready to surge any day now.

I disagree, PMSC program is safer than than having gold or silver in your safe or buried in your garden.

I can sleep soundly at night or if I travel somewhere and find out my house burned down or got robbed, its always on record at Perth Mint my investment.

Aegis

novazombie wrote: »

Now that the banks are not safe anymore what other suggestions are the safest with the best possible return?

My number 1 suggestion is Gold and Silver, but gold has gone up just now where as silver has gone down and not gone back up yet.

But here in the UK you have to pay VAT on physical silver and you have all the risk about corrosion or theft/loss ect.

So I have put a large portion of my portfolio into Perth Mint Silver certificates. I got a very good price of $10 per ounce (at time of writing). There is no ongoing charges for storage insurance etc. Yet it is insured by the Oz government.

Not long ago it was more than double that and I have read reports predicting over $50+ per ounce in the future.

Your reasoning eludes me... "Cash isn't safe enough, so I'll try my hand at commodity trading." Trading in gold, silver and other commodities is an extremely high risk strategy and is about as far from holding cash as you can get.

For the record, banks ARE still safe. As yet there are no retail depositors who stand to lose money at this stage from any of the bank failures, and there are two banks wholly owned and guaranteed by the government along with another handful where there is negligible risk of failure. The rest may be in some danger, but if they're in the UK the precedent has been set that the assets and deposits will be sold on to another financial company and fully guaranteed.

Certainly no reason to dive into commodity speculation as an alternative to cash...

Yoshua

Aegis wrote: »

Your reasoning eludes me... "Cash isn't safe enough, so I'll try my hand at commodity trading." Trading in gold, silver and other commodities is an extremely high risk strategy and is about as far from holding cash as you can get.

For the record, banks ARE still safe. As yet there are no retail depositors who stand to lose money at this stage from any of the bank failures, and there are two banks wholly owned and guaranteed by the government along with another handful where there is negligible risk of failure. The rest may be in some danger, but if they're in the UK the precedent has been set that the assets and deposits will be sold on to another financial company and fully guaranteed.

Certainly no reason to dive into commodity speculation as an alternative to cash...

The banks are only safe if the proposed pay out make good on their promises.

There just isn't enough money in the system!

Its all talk, first 50K covered etc, when the sh*t hits the fan and everyone and his uncles dog want to get their money back because they thought it was safely guaranteed by the government, where is it going to come from?

Maybe the government could ask Iceland to pay back the money they owe them.

Aegis

Yoshua wrote: »

The banks are only safe if the proposed pay out make good on their promises.

Or if the government covers the payout. So far despite five or six banks failing, no-one using an FSA-authorised UK bank has lost money. Anyone following the advice of the "safe commodity" claims six months ago could well have been sitting on 30% losses at one point, and you can guarantee that the risk averse wouldn't have liked that one bit.

There just isn't enough money in the system!

There's more than enough if people stop panicking.

Its all talk, first 50K covered etc, when the sh*t hits the fan and everyone and his uncles dog want to get their money back because they thought it was safely guaranteed by the government, where is it going to come from?

If you ask me, the worst is over. We may see a couple more smaller banks taken over, but the chances are that it's never going to get to the situation where everyone wants their money out in cash at once. Rather we'll see what I'm already seeing every day: people coming into the safer banks and transferring £50-100k or more over by electronic transfer or cash. No need for physical cash in that process.

catflappo

Is the Bradford and Bingley completely safe now?

And what about HBOS etc that recently got bailed out?

novazombie

Aegis wrote: »

Or if the government covers the payout. So far despite five or six banks failing, no-one using an FSA-authorised UK bank has lost money. Anyone following the advice of the "safe commodity" claims six months ago could well have been sitting on 30% losses at one point, and you can guarantee that the risk averse wouldn't have liked that one bit.



There's more than enough if people stop panicking.



If you ask me, the worst is over. We may see a couple more smaller banks taken over, but the chances are that it's never going to get to the situation where everyone wants their money out in cash at once. Rather we'll see what I'm already seeing every day: people coming into the safer banks and transferring £50-100k or more over by electronic transfer or cash. No need for physical cash in that process.

If you ask me you are very wrong when you say the worst is over. The worst hasn't even begun yet. With property set to half in the UK there just isn't enough collateral to keep the banks afloat, government trying to help or not.

All the smart people are getting their money out now before what happened in Iceland happens in more and more countries including the UK.

unhealthyman

God... Shut up already. Climb into your paranoid bunker surrounded with mountains of baked beans and barricade your doors with gold and leave the rest of us in peace.

NeilW

Aegis wrote: »

So far despite five or six banks failing, no-one using an FSA-authorised UK bank has lost money.

Technically we have lost money. At the moment we have an asset that cannot be liquidated and has no liquidation date. We are assured that it will be liquidated at some point, but no real legal mechanism to enforce the debt.

Now arguable we haven't lost 'money' in the widest sense of the word, but if I was drawing up my balance sheet in strict accordance with ASAB standards I would have to move the asset from 'Cash in hand and at bank' to 'Debtors'.

And as we all know cashflow kills. That is after all what finished the Icelandic banks and the Northern Rock. And for some people the 'loss of access' is worse than a physical loss.

NeilW

Reaper

novazombie wrote: »

All the smart people are getting their money out now before what happened in Iceland happens in more and more countries including the UK.

Smart people are taking their savings out of banks which are guaranteed and which pay interest to put it into a commodity which pays no interest at a time of growing inflation? Doesn't sound so smart to me.

By all means gamble on gold going up in a time of crisis. It may well do though it has been disappointing so far. But don't go thinking it is "safe".