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wtw2

£3500 To Invest - What Would You Do?

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Hi Guys,

I have came across this site yesterday. Tonnes and tonnes of information on it. My question is, what would be the best way to invest £3500 to protect me from the £ inflation with it just sitting in the bank.

I am tempted with a NS&I Index-linked Savings Certificate, (how does this protect you from the £ devaluation ?) would this be a safe bet or what would be the best ROI on my £3500 with safety bearing in mind?

There just seems a world of info on here and everywhere. I really dont know where to begin as I am a complete newbie to investing.

Cheers wtw2.

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Hi Guys,

I have came across this site yesterday. Tonnes and tonnes of information on it. My question is, what would be the best way to invest £3500 to protect me from the £ inflation with it just sitting in the bank.

I am tempted with a NS&I Index-linked Savings Certificate, (how does this protect you from the £ devaluation ?) would this be a safe bet or what would be the best ROI on my £3500 with safety bearing in mind?

There just seems a world of info on here and everywhere. I really dont know where to begin as I am a complete newbie to investing.

Cheers wtw2.

If you primarily care about safety and just want to preserve the value of your money, then the NS&I certs are a good bet so long as you don't need the money in a hurry. The won't protect you against the pound falling in value against other currencies but they will protect you against inflation (they're RPI linked and tax free). Failing that, I'd suggest spending it on crack cocaine and hookers whilst its still worth something.

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If you primarily care about safety and just want to preserve the value of your money, then the NS&I certs are a good bet so long as you don't need the money in a hurry. The won't protect you against the pound falling in value against other currencies but they will protect you against inflation (they're RPI linked and tax free). Failing that, I'd suggest spending it on crack cocaine and hookers whilst its still worth something.

+1

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It' all depends on your personal circumstances.

If the £3.5k is all your savings, and it took a long time to put together then you can play it safe with something like the NS&I bonds (if you have any debt it may be an idea to pay that down instead).

There’s also the issue of access to the money. If you might need to access it quickly then “investing” isn’t probably the best approach. Most proper investments require a reasonable period of time to provide a decent return.

If £3.5k isn't a lot of money to you then you can afford to be more speculative.

I’m not going to give you any specific advice on speculative investment (and you shouldn’t listen to me anyway – always do your own due diligence), but I will say that the stock markets looking a bit funny at the minute, so I’m not putting any lump sums into shares at the moment. When I do buy shares I tend to keep it simple, and I go in a little bit at a time e.g. £x amount a month into an index tracker in a share ISA, as this offers some protection against timing the entry to the market all wrong, and the ISA status means you don’t pay any tax.

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It' all depends on your personal circumstances.

If the £3.5k is all your savings, and it took a long time to put together then you can play it safe with something like the NS&I bonds (if you have any debt it may be an idea to pay that down instead).

There’s also the issue of access to the money. If you might need to access it quickly then “investing” isn’t probably the best approach. Most proper investments require a reasonable period of time to provide a decent return.

If £3.5k isn't a lot of money to you then you can afford to be more speculative.

I’m not going to give you any specific advice on speculative investment (and you shouldn’t listen to me anyway – always do your own due diligence), but I will say that the stock markets looking a bit funny at the minute, so I’m not putting any lump sums into shares at the moment. When I do buy shares I tend to keep it simple, and I go in a little bit at a time e.g. £x amount a month into an index tracker in a share ISA, as this offers some protection against timing the entry to the market all wrong, and the ISA status means you don’t pay any tax.

Some great info. Thanks for the advice.

Edited by wtw2

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Sovereigns.

Would the Canadian maple leafs not be a better investment considering they are 1 troy oz of pure .999 gold?

The Canadian maple is a nice coin, however there are some other considerations.

Sovereigns have a gold content of 7.32g with a gross weight of 7.98g with their copper content, which makes them more resilient against damage or scratches.

Currently, you can buy from Baird & Co. http://goldline.co.uk/bullionCoinsPage.page a new 2010 sovereign for £198.25, a Canadian maple costs £828.25.

Based on the above prices a sovereign costs £27.08p per gram of gold and a Canadian maple (31.1g of gold) costs slightly less at £26.63p a gram.

However, British gold sovereigns are exempt from CGT (Capital Gains Tax) as they are legal tender with a face value of £1. Also the modern sovereign has been produced for the most part for 200 years and circulated as money in the former British Empire, it is therefore the world's most recognised gold coin, for this reason U.S. and U.K. fighter pilots and special forces personnel are issued with British sovereigns in their emergency packs.

Edited by Take Me Back To London!

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Hi Guys,

I have came across this site yesterday. Tonnes and tonnes of information on it. My question is, what would be the best way to invest £3500 to protect me from the £ inflation with it just sitting in the bank.

I am tempted with a NS&I Index-linked Savings Certificate, (how does this protect you from the £ devaluation ?) would this be a safe bet or what would be the best ROI on my £3500 with safety bearing in mind?

There just seems a world of info on here and everywhere. I really dont know where to begin as I am a complete newbie to investing.

Cheers wtw2.

I would buy a case of Cheval Blanc 2008 for £3,550 from Farr Vintners.

http://www.farrvintners.com/wineindex.php?regionid=1

They will store it for you in a temperature controlled bonded warehouse for about £8 a year - this saves you from temptation and it is also recognised by other merchants, private buyers and auction houses for the all important factor of provenance.

The world's most influential wine writer Robert Parker has said that the 2008 vintage is seriously underpriced (especially when compared to the ridiculous 2009 prices - AVOID 2009!).

As long as you don't remove the wine from bond you pay no duty or VAT on it, and it can be sold while still in bond - there's no CGT liability either. At the very, very least I can't see the wine dropping in value - over five to ten years you should see a very healthy return. Cheval Blanc is a wonderful wine (the best wine I ever tasted was a bottle of the 1955 a few months ago) - but if you can stretch a few more thousand to buy a first growth (Latour, Mouton Rothschild, Margaux or Haut Brion - Lafite is way beyond that though) then do it - they are the blue chips with pretty much guaranteed growth.

I invested £22,000 in wine in March 2009 to protect my capital - my five cases are now worth just over £28,000.

Edited by rconti479

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I would buy a case of Cheval Blanc 2008 for £3,550 from Farr Vintners.

http://www.farrvintners.com/wineindex.php?regionid=1

They will store it for you in a temperature controlled bonded warehouse for about £8 a year - this saves you from temptation and it is also recognised by other merchants, private buyers and auction houses for the all important factor of provenance.

The world's most influential wine writer Robert Parker has said that the 2008 vintage is seriously underpriced (especially when compared to the ridiculous 2009 prices - AVOID 2009!).

As long as you don't remove the wine from bond you pay no duty or VAT on it, and it can be sold while still in bond - there's no CGT liability either. At the very, very least I can't see the wine dropping in value - over five to ten years you should see a very healthy return. Cheval Blanc is a wonderful wine (the best wine I ever tasted was a bottle of the 1955 a few months ago) - but if you can stretch a few more thousand to buy a first growth (Latour, Mouton Rothschild, Margaux or Haut Brion - Lafite is way beyond that though) then do it - they are the blue chips with pretty much guaranteed growth.

I invested £22,000 in wine in March 2009 to protect my capital - my five cases are now worth just over £28,000.

'Worth' as in you could sell today for £28k or 'worth' as in currently valued at?

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'Worth' as in you could sell today for £28k or 'worth' as in currently valued at?

As in currently valued at if I sell them myself (which I can do through my wine business). If I sell through a broker they are worth £26k. Sorry - I should have made that clear.

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I would buy a case of Cheval Blanc 2008 for £3,550 from Farr Vintners.

http://www.farrvintners.com/wineindex.php?regionid=1

They will store it for you in a temperature controlled bonded warehouse for about £8 a year - this saves you from temptation and it is also recognised by other merchants, private buyers and auction houses for the all important factor of provenance.

The world's most influential wine writer Robert Parker has said that the 2008 vintage is seriously underpriced (especially when compared to the ridiculous 2009 prices - AVOID 2009!).

As long as you don't remove the wine from bond you pay no duty or VAT on it, and it can be sold while still in bond - there's no CGT liability either. At the very, very least I can't see the wine dropping in value - over five to ten years you should see a very healthy return. Cheval Blanc is a wonderful wine (the best wine I ever tasted was a bottle of the 1955 a few months ago) - but if you can stretch a few more thousand to buy a first growth (Latour, Mouton Rothschild, Margaux or Haut Brion - Lafite is way beyond that though) then do it - they are the blue chips with pretty much guaranteed growth.

I invested £22,000 in wine in March 2009 to protect my capital - my five cases are now worth just over £28,000.

I don't normally agree with the bulls but I think this is good advice for those seeking to invest outside the banks' lowly rates

Personally I missed out on NS&I as my bond from a previous year had not matured at the time. How frustrated I am now but that is the way it goes.

M

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Here goes with what I think is my first post.

I agree on investing in wine. Good returns look accessible, for acceptable risk. It is also an asset class quite well uncorrelated from more traditional ones such as stocks and bonds. Wine seems to be getting an awful lot of press about its investment capabilities.

I have looked into the the 2 main options, which I then ignored as I found something I prefer more:

i) Wine Investment Funds. Supposed experts but I didn't think the experts had outperformed the market so to speak all that well based on their figures. 5% cost to enter the fund, then the usual hedge fund fees of 2% management fee, and 20% performance fee. I see top end wine as a highly desired franchise, where each year the supply of the various vintages decreases, and experiences greater demand as emerging economy middle classes come online. I wasn't sure these fund managers were worth their fees.

ii) Wine merchants like Berry Bros, Farr Vintners etc. I liked the fact that I could select what I want to buy from these guys, and then have it stored professionally in their cellars. However, their costs to buy and sell are mad!!! The average spread I found across the big merchants was around 25%. Ie - I had to pay +12.5% above the real price to buy the wine, and then when I wanted to sell it back to them they would offer me 12.5% below this real price. I could not believe this. It meant I would have to see an asset appreciation of 25% just to break even if I wanted to sell out. Whilst I am a long term investor I hate middle men taking excessive cuts.

.... anyway after feeling that the investment options for wine were limited and losing interest, I then found a company that appealed to me; MyCommodity.com.

I wanted to buy only first growths. I ended up buying Lafite 2003, Latour 2000, and Mouton 2006. It seems miles more cost efficient to buy, and storage is reasonable as well. It also allows people to buys parts of cases, meaning you can invest in XXXX vintage at £12,000 a case, even though you might only be able to buy £2000 worth. I use trading platforms regularly for my investing/trading, and it seems these guys commoditise cases of wine using a platform. I think their spreads were around 2-3%. I phoned them up to check them out before I bought. I also ended up buying gold and silver later on their platform as well, liking the fact that I can manage the investments from one account.

Regards,

FiatBear

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Guest absolutezero

The Canadian maple is a nice coin, however there are some other considerations.

You're joking!

You seen the terrible caricature of the Queen on it?

Britannias are beautiful coins.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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