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50K Cash What Now?

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Perhaps you would enlighten me then.

You invest £1000. If the RPI is 5% on the day you take it out and 4% on the first anniversay. How much will it pay out.

Arrrgggghhhh!!!

The Retail Price Index is never "5%". It's an index.

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Arrrgggghhhh!!!

The Retail Price Index is never "5%". It's an index.

Correct. But it does demonstrate a common misunderstanding. (it was a bit of a trick question)

Edited by bumpy

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Really, so they do "pay out" after a year?

Would you like to share the right answer with us?

You can take your money back after one year with the slightly lower rate of, I believe, 0.8%.

In the example I gave, the amount you will get for the link to the RPI is zero.

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You can take your money back after one year with the slightly lower rate of, I believe, 0.8%.

In the example I gave, the amount you will get for the link to the RPI is zero.

Really? I thought you said that the value of the index was 4% higher than it was when the certificate was purchased.

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I am in a similar position to the OP and surprised at not many shouts for gold on the thread. Is it the potential standardisation issue. Although Moneyweek seem really bullish on gold predicting 3000-6000 per oz.

I was looking at putting about 4k from our now 16k savings (after they were raped by our wedding!) into gold and 1k into silver. Just worry about where i would store it and buying it seems like a one way street to start with a loss once purchased form brokers.

Was tempted with mining company shares but to be honest it seems like one would need far too much background info on this type of investment to make it a ‘safe’ bet.

Am tempted by the Index house price ‘bet’. Maybe put a £1k pot into this.

The rest in crappy ISA’s, i could cry at the withdrawl of the Index linked NS&Is – is this just over subscription or is there something more ominous to this ie inflation continuing to take off?

Other than that i suppose adding to it circa £700 a month is a good way to grow it, even if its continuing existence in cash allows it to benefit ‘hard working families’.

Edited by Brave New World

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Perhaps you would enlighten me then.

You invest £1000. If the RPI is 5% on the day you take it out and 4% on the first anniversay. How much will it pay out.

Depends what the RPI was in between. Assuming the RPI hovered between 4-5% and didn't change, you would be in for a nice healthy return after 12 months (4%+0.8% ish) .

If the RPI started at 5% then went negative for the next 11 months, you would simply walk away with your capital + 0.8% after 12months

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Depends what the RPI was in between. Assuming the RPI hovered between 4-5% and didn't change, you would be in for a nice healthy return after 12 months (4%+0.8% ish) .

If the RPI started at 5% then went negative for the next 11 months, you would simply walk away with your capital + 0.8% after 12months

He clearly states that the value of the index at the 1 year anniversary is 4% higher than it was at time of purchase. What happens between the two dates is irrelevant isn't it?

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I am in a similar position to the OP and surprised at not many shouts for gold on the thread. Is it the potential standardisation issue. Although Moneyweek seem really bullish on gold predicting 3000-6000 per oz.

I was looking at putting about 4k from our now 16k savings (after they were raped by our wedding!) into gold and 1k into silver. Just worry about where i would store it and buying it seems like a one way street to start with a loss once purchased form brokers.

This isnt a gold thread and like I said in the op, gold wont be at its best when you come to purchase so saving in gold and silver may not be a great idea if you are purely focused on a house purchase. What I mean is that gold will have the highest value when the markets are doing well and typically house prices are high. The time that you will wish to buy, when house prices are at their lowest or are crashing, then things in the wider markets are likely to be ugly and gold at a much lower price.

Personally, i believe there is much to be said for gold, not only because of inflation but also for us as protection against falls in sterling or even a collapse.

Buying physical isnt difficult and there is no need to pay high premiums, look at coininvest or bairds or hatton garden metals. a few percent over spot price isnt a big deal and sometimes they also buy back over spot too. Paying 5% over and selling at 5% under (worst case imo) is no big deal if prices have changed significantly in the interim.

Look around your home, plenty of places to hide a few gold coins that no one will ever find.

Silver offers the best opportunity for a descent return imo which is why I would aim at 10oz silver to 1oz of gold, vat is a pain here though.

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So, the short version is that no one has any new ideas or opinions in light of recent events and continued poor rates of return?

Ns&i continue to be discussed inspite of that window now being closed, should they become available again in the future then they may well be worth considering but is there no alternative? am guessing that many feel not since they keep going back to them.

Premium bonds? I think that the most important thing one has to try and do is protect ones cash from being eaten away by inflation, premium bonds don't do that in any way. In fact, buying premium bonds seems to me to be akin to signing a government register and giving them permission to steal from you and being pleased about it.

Anyone considering fine wines or whiskey as alternative investments? I saw art mentioned but that seems more of a gamble than anything to those of us without any knowledge in that area, much like playing around with precious stones.

Thats about it. I have concluded now that there is no way to appreciate more than the tiny intrest in banks and building socs. Shares are on a long slide. Cash is loosing on inflation. Gold is the last resort IMO. But if many more go that way it will be a massive bubble waiting a fall. Buy what you want . Thats my advice. As for wines, got a lot of that from france last week, enough for a year.

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Silver offers the best opportunity for a descent return imo which is why I would aim at 10oz silver to 1oz of gold, vat is a pain here though.

Funny you should say that - just been looking at Bairds. Tempted to diversify into a silver bar or two.

Checked a savings a/c today - a now-Santander a/c in which I'd left a couple of tiddly peanuts just in case I ever wanted to transfer back for a better rate.

IR was 0.1%!* Which of course I only found out by phoning, since they deliberately make it almost impossible to check any other way.

And yet another 'peanut' a./c I left active with Northern Rock is still getting 1.6%.

*Can't help wondering how many old people are getting derisory rates like this on their entire stashes, esp. those with nobody to help them.

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There is an assumption that buying precious metals is the next easy ride. Check this article from 2005 regarding silver... http://sitekreator.com/Optimist/explode.html

In fact, look back on this site to the same time. People were predicting an imminent crash and were STRing back then.

The whole 'money for nothing' attitude is what got us into this mess in the first place. They are ALL bubbles based on paper money.

If you are buying silver/gold as a hedge against financial Armageddon then nobody can advise you otherwise. If however you are buying to make paper profits then you are merely buying into another (potential) bubble.

If you actually have 20,000 quid in cash why not actually invest in something productive ? Open a business for example ?

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Exactly! If you stash is there for the purposes of buying a house, and prices are dropping, inflation is not a problem...I've managed to stach aeawy £170K at the ripe old age of 32 for the purposes of buying a house with a miniscule mortgage witing the next 6 to 12 months...(hopefully), All depends on whether the BOE printing presses stay silent.

Why start speculating in any big way and risk losing a big chunk of cash?

$170k at 32? Bloody well done! ;)

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I am in a similar position to the OP and surprised at not many shouts for gold on the thread. Is it the potential standardisation issue. Although Moneyweek seem really bullish on gold predicting 3000-6000 per oz.

I was looking at putting about 4k from our now 16k savings (after they were raped by our wedding!) into gold and 1k into silver. Just worry about where i would store it and buying it seems like a one way street to start with a loss once purchased form brokers.

Was tempted with mining company shares but to be honest it seems like one would need far too much background info on this type of investment to make it a ‘safe’ bet.

Am tempted by the Index house price ‘bet’. Maybe put a £1k pot into this.

The rest in crappy ISA’s, i could cry at the withdrawl of the Index linked NS&Is – is this just over subscription or is there something more ominous to this ie inflation continuing to take off?

Other than that i suppose adding to it circa £700 a month is a good way to grow it, even if its continuing existence in cash allows it to benefit ‘hard working families’.

I've been using Goldmoney.com, however I'm changing to buy gold sovs from Baird and Co as post 1837 gold sovs don't get charged CGT on any appreciation. For a small fee, Baird will store and insure them for you.

Hope this helps :)

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There is an assumption that buying precious metals is the next easy ride. Check this article from 2005 regarding silver... http://sitekreator.com/Optimist/explode.html

In fact, look back on this site to the same time. People were predicting an imminent crash and were STRing back then.

The whole 'money for nothing' attitude is what got us into this mess in the first place. They are ALL bubbles based on paper money.

If you are buying silver/gold as a hedge against financial Armageddon then nobody can advise you otherwise. If however you are buying to make paper profits then you are merely buying into another (potential) bubble.

If you actually have 20,000 quid in cash why not actually invest in something productive ? Open a business for example ?

whats your point? the article was right, silver was $7.20 an ounce then and it is $17,74 right now having averaged over $18 for a long time and been over $20. It didnt just double in price but actually trippled at one point.

nothing wrong with bubbles so long as you get in and out at the right time. I do not believe that precious metals are a bubble though or will ever be allowed to become one.

productive? open a business? Great advice, thanks for that, tool.

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Funny you should say that - just been looking at Bairds. Tempted to diversify into a silver bar or two.

Checked a savings a/c today - a now-Santander a/c in which I'd left a couple of tiddly peanuts just in case I ever wanted to transfer back for a better rate.

IR was 0.1%!* Which of course I only found out by phoning, since they deliberately make it almost impossible to check any other way.

And yet another 'peanut' a./c I left active with Northern Rock is still getting 1.6%.

*Can't help wondering how many old people are getting derisory rates like this on their entire stashes, esp. those with nobody to help them.

bairds is expensive for silver bars, as they all are for coins. Best value is kilo bars from coininvest imo.

I had a cash isa with barclays that had some money left in it, had it for years, only when i asked about one of their new cash isa's did i find out they were only paying me 0.1%. Not once in the last 6 or 7 years have they ever mentioned it when speaking with me on the phone or trying to get me to meet with one of their investment experts.

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bairds is expensive for silver bars, as they all are for coins. Best value is kilo bars from coininvest imo.

I had a cash isa with barclays that had some money left in it, had it for years, only when i asked about one of their new cash isa's did i find out they were only paying me 0.1%. Not once in the last 6 or 7 years have they ever mentioned it when speaking with me on the phone or trying to get me to meet with one of their investment experts.

I've always found NR very helpful on the phone, unlike the one that's now Santander.

When I asked yesterday about the rate on another a/c, the girl told me, without my asking, exactly when my 1% bonus rate runs out.

As for Barclays, when I've been moving money I've been hassled by them no end to speak to one of their FAs.

On one occasion they as good as refused to move my own cash until I'd spoken to one of them.

I was so desperate not to miss a good rate that was liable to be pulled any minute, that I gave in.

Only took me 2 minutes to let him know I'd found a better a/c than anything he could offer. :)

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whats your point? the article was right, silver was $7.20 an ounce then and it is $17,74 right now having averaged over $18 for a long time and been over $20. It didnt just double in price but actually trippled at one point.

nothing wrong with bubbles so long as you get in and out at the right time. I do not believe that precious metals are a bubble though or will ever be allowed to become one.

productive? open a business? Great advice, thanks for that, tool.

My point is that precious metals are becoming the next bubble as you've pointed out with your figures.

Equally, and I imply with your bitter tone, there is everything wrong with bubbles. If it wasn't for bubbles then perhaps house prices would be stable as opposed to the ridiculous cost they are now. Mind you if you sold 100 BTL houses you've done alright for yourself. Why not do that ? Or perhaps you haven't yet realised you're on a site called "House Price Crash" ??

As for the productive comment, it's interesting that advice that has been relevant for hundreds of years if one came into a windfall is regarded as being a "tool". I think that reinforces my initial comment that it's actually about "something for nothing" rather than actually doing anything for oneself. Still if it makes you feel better, then I am a tool. I'm not the one day-dreaming on here about what I could or couldn't do if I had 20 grand though.

Edited by TheUsualSuspect

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My point is that precious metals are becoming the next bubble as you've pointed out with your figures.

Equally, and I imply with your bitter tone, there is everything wrong with bubbles. If it wasn't for bubbles then perhaps house prices would be stable as opposed to the ridiculous cost they are now. Mind you if you sold 100 BTL houses you've done alright for yourself. Why not do that ? Or perhaps you haven't yet realised you're on a site called "House Price Crash" ??

As for the productive comment, it's interesting that advice that has been relevant for hundreds of years if one came into a windfall is regarded as being a "tool". I think that reinforces my initial comment that it's actually about "something for nothing" rather than actually doing anything for oneself. Still if it makes you feel better, then I am a tool. I'm not the one day-dreaming on here about what I could or couldn't do if I had 20 grand though.

metals are not becoming the next bubble, as you clearly have no understanding of pm's or what affects their price then possibly the best thing to do is look at historical price charts. Look at the steady increase in value since the gold standard ended, nothing like a bubble.

I never said that bubbles were good news just that there is nothing wrong with them if you get in and out at the right time. Bubbles are a fact of the markets which you clearly do not understand either. Just because I am on a site called 'house price crash' does not mean that my one and only focus is now hoping for falling prices and forgetting all else.

My dik head meter went off the scale with your lame comment about starting a business. Look up from your daily mail and take a look outside, you really think this would be the environment for a new business start up for someone having never had a business before? That was the sort of ill thought out cack normally spouted by morons on the internet trying to sound clever.

The op was about where to put cash to protect it, no one is daydreaming about wind falls you moron, the discussion is about how best to protect str funds. Clearly you have no understanding of anything and no cash to consider so I stand by my earlier 'tool' remark.

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