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Ns&i Index-Linked Savings No Longer Available

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http://www.nsandi.com/products/ilsc

Do they always go off sale like this at the end of an issue, or is the government stopping them so they can issue ones linked to CPI or something else more easily inflated-away in real terms?

As the fixed interest ones are also off sale, I may be reading too much into this.

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http://www.nsandi.com/products/ilsc

Do they always go off sale like this at the end of an issue, or is the government stopping them so they can issue ones linked to CPI or something else more easily inflated-away in real terms?

As the fixed interest ones are also off sale, I may be reading too much into this.

But we have deflation if you listen to 99% of the posters on here :lol:

They have gone off sale because the public have cottoned on to the government theft of ones savings through stealth inflation on the fixed income ones.

They would rather you take the fixed at 2% a year or so and pay the government the 3% difference per annum to the inflation rate.

They were 'index' linked anyway not 'inflation' linked and governments have been bulls***ing the inflation rate for decades.

I'll stick to my high yielding defensive stocks I think...

As Marc Faber says 'negative interest rates for a decade in the West'.

Bonds and cash to be destroyed.

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http://www.nsandi.com/products/ilsc

Do they always go off sale like this at the end of an issue, or is the government stopping them so they can issue ones linked to CPI or something else more easily inflated-away in real terms?

As the fixed interest ones are also off sale, I may be reading too much into this.

I personally think it is more to do with internal capital control than a sign of imminent inflation as measured by RPI. We all know Osborne wants to include housing cost into RPI so it is quite possible we could see years if not decades of low or negative RPI because of the drag due to housing.

They were becoming too popular and NS&I were offing rates and security that the retail banks could not compete with.

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But we have deflation if you listen to 99% of the posters on here :lol:

Strocks down 25% check

Oil down 50% check

Housing down 10% check

Can of soup up 50% (that I have stopped buying as it is much cheaper and nicer to make my own) and makes up 0.000125% of my wealth

Run for the hills it is hyperinflation :lol::lol:

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I personally think it is more to do with internal capital control than a sign of imminent inflation as measured by RPI. We all know Osborne wants to include housing cost into RPI so it is quite possible we could see years if not decades of low or negative RPI because of the drag due to housing.

They were becoming too popular and NS&I were offing rates and security that the retail banks could not compete with.

No pressure from the banks about the 'unfair' competition, then.

I'd been thinking of cashing my Ernie Bonds in and buying some NS&I certs instead.

Shall stick with Ernie now. He was quite nice to me this month. :)

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Strocks down 25% check

Oil down 50% check

Housing down 10% check

Can of soup up 50% (that I have stopped buying as it is much cheaper and nicer to make my own) and makes up 0.000125% of my wealth

Run for the hills it is hyperinflation :lol::lol:

Yes definately a poor poster.

How is the man on the street being affected?

Is his petrol falling? Perhaps his council tax? Or his landline? Perhaps his train ticket is going down in price? Perhaps his food bill? Or perhaps the opposite.

The facts speak for themselves.

Most people are suffering negative interest rates, negative pay increase rates. This is a sympton of inflation/stagflation not deflation.

What was oil a barrel a decade ago? What was the cost of a house a decade ago?

Stock indexes are the only thing that have grinded sideways during the last decade. Everything else is going up. You take the spike in commodities in 2008 as the top without even factoring in the fall in sterling v the currency that commodites are priced in.

You are like many of the poster on here who post the USA's credit contraction graph and say 'deflation' see.

Even the government indexes of CPI and RPI which have been adjusted down for decades are showing inflation.

When the facts change, I change my mind. What do you do, sir?

Edited by ringledman

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Yes definately a poor poster.

How is the man on the street being affected?

Is his petrol falling? Perhaps his council tax? Or his landline? Perhaps his train ticket is going down in price? Perhaps his food bill? Or perhaps the opposite.

The facts speak for themselves.

Most people are suffering negative interest rates, negative pay increase rates. This is a sympton of inflation/stagflation not deflation.

What was oil a barrel a decade ago? What was the cost of a house a decade ago?

Stock indexes are the only thing that have grinded sideways during the last decade. Everything else is going up. You take the spike in commodities in 2008 as the top without even factoring in the fall in sterling v the currency that commodites are priced in.

You are like many of the poster on here who post the USA's credit contraction graph and say 'deflation' see.

Even the government indexes of CPI and RPI which have been adjusted down for decades are showing inflation.

When the facts change, I change my mind. What do you do, sir?

The thing is, people don't save for their retirement or investment by filling up with petrol, paying council tax or buying wholesale packs of John West tuna. People save by buying assets: stocks, bonds and real estate. Now if the stock market grinds lower for decades, real estate crashes and bonds default, we have incredibly powerful asset deflation. Your CPI basket may continue to inflate slowly, but in this environment it's not inflation I'd be worried about.

However, capital flight and currency collapse would negate that. Impossible for the US dollar in my opinion, but poor Blighty is more like Iceland in our vulnerability.

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The thing is, people don't save for their retirement or investment by filling up with petrol, paying council tax or buying wholesale packs of John West tuna. People save by buying assets: stocks, bonds and real estate. Now if the stock market grinds lower for decades, real estate crashes and bonds default, we have incredibly powerful asset deflation. Your CPI basket may continue to inflate slowly, but in this environment it's not inflation I'd be worried about.

However, capital flight and currency collapse would negate that. Impossible for the US dollar in my opinion, but poor Blighty is more like Iceland in our vulnerability.

The point is regardless of whether you view inflation as a rise in prices or rise in credit the question is -

Where will I make the best 'real return' the next decade?

Bonds and cash are highly risky at present and destined to lose a substancial amount unless the fundamnentals change.

when or if the fundamentals change then I will change my view.

In the mean time high quality, mega cap, defensive, high yield stocks offer better protection than bonds. likewise 10% in commodities.

Bonds and cash are lethal over the longer term with UK GDP's current fundamentals-

- Negative interest rates.

- Negative trade surplus.

- Budget deficit.

- High unemployment (myth that high employment = deflation, quite the opposite).

Should the facts or fundamentals change then ones view on deflation and subsequently the value of bonds and cash should change.

Edited by ringledman

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Personally I wouldn't be out of cash-like instruments into stocks or commodities unless I hear the QE2 launching. And I haven't heard it yet.

The point is regardless of whether you view inflation as a rise in prices or rise in credit the question is -

Where will I make the best 'real return' the next decade?

Bonds and cash are highly risky at present and destined to lose a substancial amount unless the fundamnentals change.

when or if the fundamentals change then I will change my view.

In the mean time high quality, mega cap, defensive, high yield stocks offer better protection than bonds. likewise 10% in commodities.

Bonds and cash are lethal over the longer term with UK GDP's current fundamentals-

- Negative interest rates.

- Negative trade surplus.

- Budget deficit.

- High unemployment (myth that high employment = deflation, quite the opposite).

Should the facts or fundamentals change then ones view on deflation and subsequently the value of bonds and cash should change.

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Bugger!!!! I was really tempted to take out a 5 year one as I had subscribed already to the 3 year one. But at least I managed to get the 3 year one in before they pulled it. This has to be a first. I guess they won't offer them again until RPI drops. I think it is a sign of low rates and high inflation.

I only wish I had subscribed to more of these last few issues. My trouble is I procrastinate too much.

Edited by Spoony

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Had this in my inbox from HS&I

"As you've registered to receive updates from NS&I, I am writing to let you know that the current 2-year and 5-year Issues of our Fixed Interest Savings Certificates and the current 3-year and 5-year Issues of our Index-linked Savings Certificates were withdrawn from general sale at close of business on 18 July 2010.

We also announced new interest rates on 19 July 2010 for the following variable rate accounts and investments:"

Sounds like the current issue has been over-subscribed. Doesnt mean there wont be another one.

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So ... does anyone know a suitable alternative to Index-linked savings products?

There's iShares INXG, and the DMO's Index-linked Gilts, but are these over-priced now due to demand and concern over inflation?

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I'll stick to my high yielding defensive stocks I think...

Arms manufacturers etc.?

(Not being high-handed, just interested.)

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http://www.nsandi.com/products/ilsc

Do they always go off sale like this at the end of an issue, or is the government stopping them so they can issue ones linked to CPI or something else more easily inflated-away in real terms?

As the fixed interest ones are also off sale, I may be reading too much into this.

Having now had my entire saving plans blown away by this move and now several days post it happening I found myself on the dog and bone to the mint asking for quotes for gold sovs sheet of 50.

Having had the quote and looking at the spot gold price I backed out.......perhaps in a couple of months it will cool a bit more.

Really we are stuffed the reintroduction will be my guess October/ November with cpi as the link and 0-0.25% bonus.

I think the choice going forward is stark loose savings value against "real" inflation or gamble that gold will hold up........and frankly I would not like to call that one.

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I have just had a question that I was wondering about answered.

Just had a maturity through, 5 years, and I have been given the option of letting it roll for another 5 years at the same rates for five years (i.e. RPI + 1%), despite there being no current issues available.

Good news as I was concerned that this wasn't going to happen.

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I have just had a question that I was wondering about answered.

Just had a maturity through, 5 years, and I have been given the option of letting it roll for another 5 years at the same rates for five years (i.e. RPI + 1%), despite there being no current issues available.

Good news as I was concerned that this wasn't going to happen.

good news indeed, I have one due in sep another in dec 3 year bonds paying 1.35% over rpi, will be pleased to roll over on the same terms with 2 x 5 year bonds still 2 years off maturity hopefully things will be clearer then as to how this is going to pan out.

At the moment I cant see a solution to the problem stocks houses and metals are all deflating, perhaps this is a good time to sit and watch.

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Guest absolutezero

I have just had a question that I was wondering about answered.

Just had a maturity through, 5 years, and I have been given the option of letting it roll for another 5 years at the same rates for five years (i.e. RPI + 1%), despite there being no current issues available.

Good news as I was concerned that this wasn't going to happen.

But what you going to do in 2015 when all there is to offer is CPI+0.1% 3 year bonds?

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But what you going to do in 2015 when all there is to offer is CPI+0.1% 3 year bonds?

Put it into what's good at the time. May well be a house at that stage after five years RPI inflation and 5 years asset deflation.

I've got nearly £250k in these, I didn't want it all coming out in cash in the next few years as I can't see a good investment right now but equally I don't want to be buried with it.

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Having now had my entire saving plans blown away by this move and now several days post it happening I found myself on the dog and bone to the mint asking for quotes for gold sovs sheet of 50.

Having had the quote and looking at the spot gold price I backed out.......perhaps in a couple of months it will cool a bit more.

Really we are stuffed the reintroduction will be my guess October/ November with cpi as the link and 0-0.25% bonus.

I think the choice going forward is stark loose savings value against "real" inflation or gamble that gold will hold up........and frankly I would not like to call that one.

The mint? FFS, no wonder you backed off, lmao, no one buys sovs from the mint.

Try coininvest or bairds or hatton garden metals.

As for the gamble that gold will go up.....don't forget that it is priced in dollars, you don't worry about the value of sterling? Gold is a great currency hedge for us as well as inflationary.

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The mint? FFS, no wonder you backed off, lmao, no one buys sovs from the mint.

Try coininvest or bairds or hatton garden metals.

As for the gamble that gold will go up.....don't forget that it is priced in dollars, you don't worry about the value of sterling? Gold is a great currency hedge for us as well as inflationary.

I had quotes from other places, granted for less volume, but other places were selling at aprox £215 each.

RM price for 50 pcs worked out with insured delivery at less thn £200 each, worked out from spot price + manufacturing cost.

Problem is that gold was falling like a stone at the time private dealers were unwilling to match the falling price whilst the mint wernt bothered they just press new ones from spot priced stock.

The reason i didnt buy was my belief that gold will drop back to less than $1000.

Also the process showed that despite the alure of the product the actual cash buyback process from a dealer is open to some debate as during my investigations I asked what a soverign was worth again in a week when the prices were falling and I was supprised that the best offer had was less than £150 which equated to less than 130 by the time insurance and delivery were priced in.

Really I dont think physical dealing is sensible in order to use gold as a money supply far too much loss in the process.

If I do buy it will be for novilty value and the charm of the product.

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I had quotes from other places, granted for less volume, but other places were selling at aprox £215 each.

RM price for 50 pcs worked out with insured delivery at less thn £200 each, worked out from spot price + manufacturing cost.

Problem is that gold was falling like a stone at the time private dealers were unwilling to match the falling price whilst the mint wernt bothered they just press new ones from spot priced stock.

The reason i didnt buy was my belief that gold will drop back to less than $1000.

Also the process showed that despite the alure of the product the actual cash buyback process from a dealer is open to some debate as during my investigations I asked what a soverign was worth again in a week when the prices were falling and I was supprised that the best offer had was less than £150 which equated to less than 130 by the time insurance and delivery were priced in.

Really I dont think physical dealing is sensible in order to use gold as a money supply far too much loss in the process.

If I do buy it will be for novilty value and the charm of the product.

hmmm, clearly it is not for you. I am astounded that someone who was looking to buy 50 sovs at once knows nothing of gold or where to buy it so maybe you made the best decision for you. Good luck.

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Guest absolutezero

Put it into what's good at the time. May well be a house at that stage after five years RPI inflation and 5 years asset deflation.

I've got nearly £250k in these, I didn't want it all coming out in cash in the next few years as I can't see a good investment right now but equally I don't want to be buried with it.

Feel free to bury me in your quarter of a million pounds.

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  • 150 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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