No Deal Brexit and Savings

GustyGardenGalaxy

Anticipating the worst case scenario of a No Deal Brexit, would it be a good idea to move any savings out of the UK, maybe even invest in Gold ? I ask this in the event that, for example, we end up in a Greece style situation.

steampowered

It is possibly a good idea to move funds out of the UK - indeed it is a good idea to have a good level of global exposure in any event.

I'm not sure about gold though. Gold is fundamentally a non-productive asset. I'd think you would be better off in global equities.

BLB53

I would not be too concerned, the government will continue to submit to the EU and give them whatever they require to end up with a deal...whether that deal is acceptable to Parliament is less certain.

In any event there will be no threat to savings and FSCS protection.

dunstonh

It should be noted that a no deal is not actually a no deal. There are plans on both sides to implement things in the event of a so called no deal.

Also, if you live in the UK, earn in the UK and have UK savings then there is nothing to worry about.

I ask this in the event that, for example, we end up in a Greece style situation.

What makes you think that the UK is comparable to Greece?

ColdIron

The UK, with its own central bank and currency, isn't remotely equivalent to Greece

Reed_Richards

Ultimately if Brexit is a success then the value of the pound will rise as Britain's economy prospers or if Brexit is a failure then the value of the pound will fall as the economy sinks. You might believe that a no-deal Brexit is more likely to damage the economy but, deal or no-deal, if you support Brexit you should be keeping your savings in the UK and if you don't you should consider moving them elsewhere.

Thrugelmir

GustyGardenGalaxy wrote: »

Anticipating the worst case scenario of a No Deal Brexit, would it be a good idea to move any savings out of the UK, maybe even invest in Gold ? I ask this in the event that, for example, we end up in a Greece style situation.

What are your "savings" invested in?

Alexland

dunstonh wrote: »

Also, if you live in the UK, earn in the UK and have UK savings then there is nothing to worry about.

Even so your spending will include imported goods which may increase or decrease in price with exchange rate movements.

For example with the Brexit devalued pound buying new cars (either imported or made in the UK from imported parts) seems unreasonably expensive so I now plan to run ours into the ground in the hope exchange rates may be more favourable in 3-5 years time.

Alex

masonic

GustyGardenGalaxy wrote: »

Anticipating the worst case scenario of a No Deal Brexit, would it be a good idea to move any savings out of the UK, maybe even invest in Gold ? I ask this in the event that, for example, we end up in a Greece style situation.

Why not invest in international equities? My main insurance against the currency falls that precipitated around the time of the referendum result was a significant holding in a S&P500 index tracker.

A cash emergency fund should be held in GBP, beyond that there are better options than holding foreign currencies or gold - neither of which are productive assets.

dividendhero

Call me a cynic, but I think the likes of Rees Mogg are trying their best to make sure there's a no deal Brexit. Their chief motivation being that they and their mates in hedge funds will be able to buy "distressed assets" in the UK at fire sale prices - the notion that these folk are acting in the interests of the working class is laughable

talexuser

And Rees-Mogg's firm Somerset Capital Finance advises clients to withdraw funds from the UK and invest abroad as well as setting up funds in Ireland.