Safest investment or savings account during financial melt-down?

ChrisS

I recently sold my shares ISAs reckoning that we are heading for a significant downturn as the pigs default.

Even if you disagree with the above, what would you do? Which bank would be safe? I have my cash with HSBC now and they were not exposed too heavily to the last episode. But what if there were a general run on the banks?

I've looked into gold, I reckon $2000 an ounce is likely so not only a safe-ish haven but possibly a capital gain to be had? I read sovereigns are a good way to go but whats the cheapest way to buy them and keep them safe?

bobbyj_2

it won't be happening. Trust me.

Loughton_Monkey

ChrisS wrote: »

I recently sold my shares ISAs reckoning that we are heading for a significant downturn as the pigs default.

Even if you disagree with the above, what would you do? Which bank would be safe? I have my cash with HSBC now and they were not exposed too heavily to the last episode. But what if there were a general run on the banks?

I've looked into gold, I reckon $2000 an ounce is likely so not only a safe-ish haven but possibly a capital gain to be had? I read sovereigns are a good way to go but whats the cheapest way to buy them and keep them safe?

I, too, saw this coming and liquidated half of my ISA's at the end of last week after a phenominal start to July. The cash sits within my ISA. But [possibly unlike yourself] I am by no means considering alternative 'homes' for the money. I have spend years salting this away into the tax shelter and am hardly going to extract it irreversibly!

So for me (and I would suggest for yourself) there is only one straategy, and that is to buy back just when they are due to 'rebound'. That way there is a bigger profit to be made on the recovery.

Now when will the recovery happen I hear you ask! Well that's the 'clever' bit. My heart says one thing. My head says another. Since my mouth is bigger than both of them, I'm saying nothing!

ChrisS

So for me (and I would suggest for yourself) there is only one strategy, and that is to buy back just when they are due to 'rebound'

I Plan to!

Now, how about views on the safest bank or a cheap way to buy gold anyone?

ruperts

All UK regulated current or savings accounts and cash ISAs in banks, building societies and credit unions are covered by the government-backed Financial Services Compensation Scheme (FSCS). So if the bank fails, you'd get back up to £85,000 per person per financial institution, the majority should get it within seven days.

How much safer do you want? Or do you have more than £85k...

markandjayne

NS&I offering inflation + 0.5% - maximum is £15k - I have just done for me and family. Dont think the UK govt will default on these any time soon. 5 years but can get out after 1 year

Ark_Welder

"The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which."

+++

As you have already done so, it would be difficult to say what I would do if I disagreed with your decision to sell.

The safest banks should be those that have a higher reliance on depositors than wholesale markets for their funding, such as HSBC.


31/12/1979 $512
31/12/1989 $398.60
31/12/1999 $290.25

...without the peak and the, er, trough. Nominal, and not even real...

Jegersmart

ChrisS wrote: »

I recently sold my shares ISAs reckoning that we are heading for a significant downturn as the pigs default.

Even if you disagree with the above, what would you do? Which bank would be safe? I have my cash with HSBC now and they were not exposed too heavily to the last episode. But what if there were a general run on the banks?

I've looked into gold, I reckon $2000 an ounce is likely so not only a safe-ish haven but possibly a capital gain to be had? I read sovereigns are a good way to go but whats the cheapest way to buy them and keep them safe?

If you have less than £85k no problem, otherwise spread it around to seperate entities.

If you do not have experience with gold, I would not be starting now at 1600 odd USD....

IMHO, DYOR

DrSyn

Q. Which bank would be safe (in UK)?

A. The Bank of England!

atush

HSBC. It is, afterall, the Hong Kong Shanghai banking corp.

nxdmsandkaskdjaqd

Loughton_Monkey wrote: »

I, too, saw this coming and liquidated half of my ISA's at the end of last week after a phenominal start to July. The cash sits within my ISA. But [possibly unlike yourself] I am by no means considering alternative 'homes' for the money. I have spend years salting this away into the tax shelter and am hardly going to extract it irreversibly!

So if you have sold your Stocks and Shares ISA and the resulting cash is still within the ISA wrapper, is the cash protected by the Financial Services Compensation Scheme (FSCS)?