Alternative To Holding Cash in SIPP?

83705628

bowlhead99 said:

tcallaghan93 said:

bowlhead99 said:

tcallaghan93 said

It's a waste of money. If you want to control volatility hold cash. Gold has not intrinsic value so it is impossible to work out the expected return.

Well, cash doesn't have 'intrinsic value' either - it's a medium of exchange, and will buy in the future whatever it will buy based on the prices of goods, services and investments at that time. So too would the proceeds of gold.

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Exactly, with 0 volatility, 0 cost and the fact it may pay interest

Though the 0 volatility and cost is only true in nominal terms rather than real terms, so you have to hope that the interest may cover the inflation, and the risk that it may not do that (especially with interest rates at 300 year lows) is the main reason that the OP was looking for something that may have a better 'element of inflation proofing'.

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Equity

bowlhead99

tcallaghan93 said:

bowlhead99 said:

tcallaghan93 said:

bowlhead99 said:

tcallaghan93 said

It's a waste of money. If you want to control volatility hold cash. Gold has not intrinsic value so it is impossible to work out the expected return.

Well, cash doesn't have 'intrinsic value' either - it's a medium of exchange, and will buy in the future whatever it will buy based on the prices of goods, services and investments at that time. So too would the proceeds of gold.

/
Exactly, with 0 volatility, 0 cost and the fact it may pay interest

Though the 0 volatility and cost is only true in nominal terms rather than real terms, so you have to hope that the interest may cover the inflation, and the risk that it may not do that (especially with interest rates at 300 year lows) is the main reason that the OP was looking for something that may have a better 'element of inflation proofing'.

/
Equity

Yes, that's been suggested to the OP who has acknowledged that he will need to move further up the 'risk scale' from what he had originally anticipated, but in an attempt to moderate the volatility of an equity-heavy portfolio, other 'diversifiers' are put forward

83705628

bowlhead99 said:

tcallaghan93 said:

bowlhead99 said:

tcallaghan93 said:

bowlhead99 said:

tcallaghan93 said

It's a waste of money. If you want to control volatility hold cash. Gold has not intrinsic value so it is impossible to work out the expected return.

Well, cash doesn't have 'intrinsic value' either - it's a medium of exchange, and will buy in the future whatever it will buy based on the prices of goods, services and investments at that time. So too would the proceeds of gold.

/
Exactly, with 0 volatility, 0 cost and the fact it may pay interest

Though the 0 volatility and cost is only true in nominal terms rather than real terms, so you have to hope that the interest may cover the inflation, and the risk that it may not do that (especially with interest rates at 300 year lows) is the main reason that the OP was looking for something that may have a better 'element of inflation proofing'.

/
Equity

Yes, that's been suggested to the OP who has acknowledged that he will need to move further up the 'risk scale' from what he had originally anticipated, but in an attempt to moderate the volatility of an equity-heavy portfolio, other 'diversifiers' are put forward

Tulips