Is Cash King at the Moment?

Barcap

Cash is not king atm.. just look at the money printing around the world atm, governments are not going to deflate, they will inflate, its the only way to get growth. stocks and shares are the only investment to be in atm.

bowlhead99

Peanutheed wrote: »

Couple of good metal clips on YouTube. Unfortunately as a newbie I cannot link to them.

I am however going to start buying Silver Coins for my kids long term savings.

jamesd wrote: »

Peanuthead, see the rule about silver discussions here.

While it might be a bit early to say whether Peanutheed is going to become a spammer, I'm not sure that every mention of the metal requires a reference to the sticky which essentially just references through to a FAQ which says that:

You may NOT use the forum to give investment advice by way of business, make financial promotions or make misleading statements with a view to manipulating market prices

I would have thought it would be quite adequate to point out that speculating that a silver coin, which produces no income and in fact is the exact opposite (i.e. incurring storage/insurance costs), is going to be as valuable to our future society as a basket of equities which represent ownership stakes in a widely diversified set of profitable international businesses - seems fundamentally misguided and certainly quite risky if the goal is to maximise the kids' wealth with some long term downside/inflation protection. And why would the goal not be that?

I do have exposure to silver through a precious metals ETF and various mining equities wthin a diversified portfolio across asset classses. But if trying to generate wealth for someone a generation behind you, it seems bizarre that you would prefer the "eggs in one basket" approach of buying and holding a piece of metal - rather than taking equity positions in properties or companies and/or making loans to a broad spectrum of companies and/or governments.

JoeCrystal

Cash IS King when the amount is my emergency fund and saving up for a deposit.

jamesd

bowlhead99, the relevant parts of the post I linked to told posters not to post about that metal here.

If you want to discuss this more, please refer the original post, my pointing to the rule, your post and this reply to the Forum Team and discuss it with them, not me.

My opinion was that the poster was likely to break that rule with links to silver-touting videos as soon as the forum restrictions were lifted, and I decided to be more friendly to the newcomer than just reporting the post to the Forum Team immediately.

bowlhead99

Fair enough Jamesd, you can never tell what a new poster is going to do when given his wings, and I suppose he did talk about wanting to post videos. His other forum posts to date had been nothing about metal.

I wasn't really around much when the whole 'ban silver threads' happened a couple of years back, and on following your link through to another link which just said see the faq for explanation, it just said that you couldn't make financial promotions or misleading statements to manipulate prices, or advice by way of business.

So my thought was why not suggest why speculating on silver price is shortsighted and risky, which might be more helpful to other readers than just saying "careful, we're all banned from talking about this". Following the link to the FAQ, people are just banned from making threads related to silver promotions, if I'm reading it right?

For example there is no ban on the incessant suggestions to buy gold, sell gold, or buy Invesco High Income or dripfeed Vanguard Lifestrategy every waking day of our lives on the forum, even though any one of those 4 options have risks. I generally think people would get a better view from reading a discussion between newbies and longstanding forum members on the merits of cash or gold or silver or traditional investments rather than just banning something.

But I can see why you linked it, no criticism intended I guess.

Hominu

JoeCrystal wrote: »

Cash IS King when the amount is my emergency fund and saving up for a deposit.

You mean a known risk investment. You know your cash is going to lose value at a known rate, rather than not knowing whether an investment will make or lose value and at what rate.

jamesd

The Forum Team doesn't want to have to try to work out which posts are or are not illegal so they banned the lot. I've replied privately with a bit more detail, because in general the Forum team prefers not to have rules discussions like this if they might then mean that they also have to remove all the posts discussing the rules...

Leblanc_2

Hominu wrote: »

You mean a known risk investment. You know your cash is going to lose value at a known rate, rather than not knowing whether an investment will make or lose value and at what rate.

Yes, I suppose that sums it up.

dktreesea

I suppose people invest in physical things because they hope they will hold their value better than cash. But neither will fare well (assuming the things are purchased here, so paid for in sterling) if QE rolls on and the pound keeps depreciating.

2010

Cash is always king.
It`s there, it`s instant, you can buy NOW.