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goldbug9999

Physical Cash - Best "investment" Right Now ?

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I know its arguably a bit "tinfoil hat" to be paranoid about bank collapses but ...

With the current paltry rates for savers surely the best risk-adjusted return available right now is physical cash (and I mean bank notes in a safety deposit box - not e-cash in a bank account), well and perhaps some physical gold as a hedge. Not sure pure sterling is optimal either. Maybe an even split of physical £/CHF/gold ?. Regarding deposit guarantees by the gov - I think they will be unable to cover a major collapse and would default or at least force people to take a hefty hair cut.

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I know its arguably a bit "tinfoil hat" to be paranoid about bank collapses but ...

With the current paltry rates for savers surely the best risk-adjusted return available right now is physical cash (and I mean bank notes in a safety deposit box - not e-cash in a bank account), well and perhaps some physical gold as a hedge. Not sure pure sterling is optimal either. Maybe an even split of physical £/CHF/gold ?. Regarding deposit guarantees by the gov - I think they will be unable to cover a major collapse and would default or at least force people to take a hefty hair cut.

Open an account with the Bank of England. Safe as houses.

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I know its arguably a bit "tinfoil hat" to be paranoid about bank collapses but ...

With the current paltry rates for savers surely the best risk-adjusted return available right now is physical cash (and I mean bank notes in a safety deposit box - not e-cash in a bank account), well and perhaps some physical gold as a hedge. Not sure pure sterling is optimal either. Maybe an even split of physical £/CHF/gold ?. Regarding deposit guarantees by the gov - I think they will be unable to cover a major collapse and would default or at least force people to take a hefty hair cut.

maybe a month or two's worth of cash on hand would be prudent but more than that and it could be a liability. If it all goes pete tong then the chances are that the value of sterling would dive quickly, too quick for you to do anything with a matress full of paper. Best to have your electronic digits somewhere they can be moved or converted quickly maybe.

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I know its arguably a bit "tinfoil hat" to be paranoid about bank collapses but ...

With the current paltry rates for savers surely the best risk-adjusted return available right now is physical cash (and I mean bank notes in a safety deposit box - not e-cash in a bank account), well and perhaps some physical gold as a hedge. Not sure pure sterling is optimal either. Maybe an even split of physical £/CHF/gold ?. Regarding deposit guarantees by the gov - I think they will be unable to cover a major collapse and would default or at least force people to take a hefty hair cut.

You should definitely be hedged with some physical gold. I wouldn't be happy with everything in the bank in sterling.

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You should definitely be hedged with some physical gold. I wouldn't be happy with everything in the bank in sterling.

I never caught the 'perhaps' I just saw his name and assumed. What sort of goldbug doesnt have any physical?

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I know its arguably a bit "tinfoil hat" to be paranoid about bank collapses but ...

With the current paltry rates for savers surely the best risk-adjusted return available right now is physical cash (and I mean bank notes in a safety deposit box - not e-cash in a bank account), well and perhaps some physical gold as a hedge. Not sure pure sterling is optimal either. Maybe an even split of physical £/CHF/gold ?. Regarding deposit guarantees by the gov - I think they will be unable to cover a major collapse and would default or at least force people to take a hefty hair cut.

If you have too much cash the state will acuse of laundering it or being either a terrorist or drug dealer and will confiscate it.

CHF - The liabilities of UBS are six times the GDP of Switzerland. Printy printy. The swissie is no longer gold backed.

Good luck.

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If you have too much cash the state will acuse of laundering it or being either a terrorist or drug dealer and will confiscate it.

CHF - The liabilities of UBS are six times the GDP of Switzerland. Printy printy. The swissie is no longer gold backed.

Good luck.

it does make me laugh when you take more than 1k in to the bank to deposit and sirens go off and the manager comes running asking you were it came from lol

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it does make me laugh when you take more than 1k in to the bank to deposit and sirens go off and the manager comes running asking you were it came from lol

Yes I had that a while back, my reply was if its dirty money how come you let me deposit it in the first place. Many of the banks say they don't hold that kind of cash!!

Its no wonder nobody robs bank any more, they don't have any money!!

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it does make me laugh when you take more than 1k in to the bank to deposit and sirens go off and the manager comes running asking you were it came from lol

Try depositing US Dollars into a US Dollar current account in the UK. OK the amount was $15,000 in cash, but I not only did I have the provide proof of where the Dollars came from but I also had to provide proof of where the Sterling that bought the Dollars came from.

I'm also finding now that I am being called by the 'fraud department' of my bank when I do a transfer, and they are not large transfers either, faster payments of up to £10k. The last one was ridiculous. I put the transfer through at 10am expecting the money to show up in the other account within a few hours. At 7pm the fraud department called me to verify the transaction before they would release the money. This then screwed up the next days transfers because I could not send more than £10k per day.

Not sure what is going on 'out there,' but I'm not feeling very comfortable holding anything at a bank these days.

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Try depositing US Dollars into a US Dollar current account in the UK. OK the amount was $15,000 in cash, but I not only did I have the provide proof of where the Dollars came from but I also had to provide proof of where the Sterling that bought the Dollars came from.

I'm also finding now that I am being called by the 'fraud department' of my bank when I do a transfer, and they are not large transfers either, faster payments of up to £10k. The last one was ridiculous. I put the transfer through at 10am expecting the money to show up in the other account within a few hours. At 7pm the fraud department called me to verify the transaction before they would release the money. This then screwed up the next days transfers because I could not send more than £10k per day.

Not sure what is going on 'out there,' but I'm not feeling very comfortable holding anything at a bank these days.

How long can it be before the economy goes entirely cashless with some Oystercard or Mobile Phone e-credit system in its place? I reckon about 5 years. The government will claim it will cut down on money laundering and save costs (an anti-crime and austerity measure rolled into one).

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all goes pete tong then the chances are that the value of sterling would dive quickly, too quick for you to do anything with a matress full of paper. Best to have your electronic digits somewhere they can be moved or converted quickly maybe.

1. Please define in some detail the reasons why physical cash would dive in value or provide link(s)

2. what if you can't see your digits anymore because the web servers are permanently down & the bank doors are locked.

Personal view: few k in cash + some physical silver as a inflation hedge

In the event of state failure a few thousand in cash could turn into many thousands plus valuable hard assets if you are someone who can buy and hold in the midst of hungry, distressed sellers.

Personal security might need consideration though.

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If you have too much cash the state will acuse of laundering it or being either a terrorist or drug dealer and will confiscate it.

CHF - The liabilities of UBS are six times the GDP of Switzerland. Printy printy. The swissie is no longer gold backed.

Good luck.

Indeed, physical gold/silver will be the last chair available in this insane game of financial musical chairs that is playing out. Stay away from paper, while it's true that some paper currencies will perform better than others, all will fall against gold. So, just cut out the middle men, you'll be a lot better off for it when the music stops.

Edited by General Congreve

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1. Please define in some detail the reasons why physical cash would dive in value or provide link(s)

2. what if you can't see your digits anymore because the web servers are permanently down & the bank doors are locked.

Personal view: few k in cash + some physical silver as a inflation hedge

In the event of state failure a few thousand in cash could turn into many thousands plus valuable hard assets if you are someone who can buy and hold in the midst of hungry, distressed sellers.

Personal security might need consideration though.

I suppose it depends what is going to happen in the event of a major bank failure or sovereign default. The way I see there will be instant seismic deflation i.e. what happened in the first credit crunch but probably much worse since the balance sheets of banks and countries are more precarious now than they were then. Thus at least in the sort term physical cash will be king. Bailouts and QE take time to organise so there will be a window for me to buy back into assets and stocks before printy printy kicks in on a massive scale.

.

I think in the UK we are "confused" about what happened in 2008 because the move to ZIRP counteracted the deflationary effect of the crunch. This time however we have nowhere to go on IRs so the short term deflation cant be trumped on a whim by BOE defacto devaluation.

Oh and yes this mean I accept gold might tank a bit if this happens but right now gold is a good insurance policy against the creeping inflation and a hedge against no black swans showing up after all.

Edited by goldbug9999

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If you have too much cash the state will acuse of laundering it or being either a terrorist or drug dealer and will confiscate it.

CHF - The liabilities of UBS are six times the GDP of Switzerland. Printy printy. The swissie is no longer gold backed.

Good luck.

Wonder what's the latest on UBS. Last year the Swiss government sold their holdings and said, "You're on yer own". Credit Suisse as well.

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Try depositing US Dollars into a US Dollar current account in the UK. OK the amount was $15,000 in cash, but I not only did I have the provide proof of where the Dollars came from but I also had to provide proof of where the Sterling that bought the Dollars came from.

I'm also finding now that I am being called by the 'fraud department' of my bank when I do a transfer, and they are not large transfers either, faster payments of up to £10k. The last one was ridiculous. I put the transfer through at 10am expecting the money to show up in the other account within a few hours. At 7pm the fraud department called me to verify the transaction before they would release the money. This then screwed up the next days transfers because I could not send more than £10k per day.

Not sure what is going on 'out there,' but I'm not feeling very comfortable holding anything at a bank these days.

What bank is that? I have a chunk of dollars that I don't want to convert to £, but don't want to keep lying around.

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Indeed, physical gold/silver will be the last chair available in this insane game of financial musical chairs that is playing out. Stay away from paper, while it's true that some paper currencies will perform better than others, all will fall against gold. So, just cut out the middle men, you'll be a lot better off for it when the music stops.

I agree.

People fail do understand that during the time when 'cash was king' it happend to be backed by something...

Check your history - Sterling = Silver. Not some debt backed piece of paper!

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I suppose it depends what is going to happen in the event of a major bank failure or sovereign default. The way I see there will be instant seismic deflation i.e. what happened in the first credit crunch but probably much worse since the balance sheets of banks and countries are more precarious now than they were then. Thus at least in the sort term physical cash will be king. Bailouts and QE take time to organise so there will be a window for me to buy back into assets and stocks before printy printy kicks in on a massive scale.

.

I think in the UK we are "confused" about what happened in 2008 because the move to ZIRP counteracted the deflationary effect of the crunch. This time however we have nowhere to go on IRs so the short term deflation cant be trumped on a whim by BOE defacto devaluation.

Oh and yes this mean I accept gold might tank a bit if this happens but right now gold is a good insurance policy against the creeping inflation and a hedge against no black swans showing up after all.

They could make holding physical gold illegal. Been done before-now would that not qualify as a black swan?

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What bank is that? I have a chunk of dollars that I don't want to convert to £, but don't want to keep lying around.

I would honestly advise anybody to open an account in the US. Florida is probably easiest as they are used to Brits. Here in RI it's getting a bit more difficult I am told but RBS own Citizens which is not bad for me.

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I know its arguably a bit "tinfoil hat" to be paranoid about bank collapses but ...

With the current paltry rates for savers surely the best risk-adjusted return available right now is physical cash (and I mean bank notes in a safety deposit box - not e-cash in a bank account), well and perhaps some physical gold as a hedge. Not sure pure sterling is optimal either. Maybe an even split of physical £/CHF/gold ?. Regarding deposit guarantees by the gov - I think they will be unable to cover a major collapse and would default or at least force people to take a hefty hair cut.

better off buying a beer, or maybe some prozac.. sheesh, get a grip

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guys i really wish i knew about investing, curencies, ect but i dont i came here to get a real feel of what was going on befor i got into the housing market

im very glad i did but now the decision has been made to stay out of the market in such uncertain times i feel i need to educate myself on safe guarding my savings

not so much making from them just making sure they dont get eroded and are safe, i have 57k in my ftb ac ive wonderd about premium bonds are these safe just to stow away my cash?

thanks in advance

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1. Please define in some detail the reasons why physical cash would dive in value or provide link(s)

2. what if you can't see your digits anymore because the web servers are permanently down & the bank doors are locked.

Personal view: few k in cash + some physical silver as a inflation hedge

In the event of state failure a few thousand in cash could turn into many thousands plus valuable hard assets if you are someone who can buy and hold in the midst of hungry, distressed sellers.

Personal security might need consideration though.

1. Iceland, argentina, weimar. Currency controls would be put in place quickly in a major event.

2. The banking system could be frozen rapidly, that is why I said about having your digits somewhere safe or where they can be moved or converted quickly. The odds of being able to do this in a crash ahead of a system freeze are slim but still vastly better than trying to do it with a matress full of paper. If a collapse were to worsen over a few daysrather than the system being frozen in a few hours then you would have plenty of time to react, still crappy odds trying to protect or dispose of your entire cash surplus though.

In the event of state failure a few thousand in cash would turn into bog roll.

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They could make holding physical gold illegal. Been done before-now would that not qualify as a black swan?

They could try, although I doubt they would - hasnt been tried in any other country or collapse/event since the US.

Holding gold was not made illegal either, gold dust/nugget/jewellry were all ok. Gold coin was what the goobermint took from people and didnt want held in private hands, largely because they feared that the populace would revert to using gold coin as currency and the dollar would really crap out.

Each person was still entitled to hold 5 troy ounces of gold though.

Most privately held gold found its way out of the US and into the safety of foreign vaults, mostly swiss.

Very little gold was actually turned in.

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guys i really wish i knew about investing, curencies, ect but i dont i came here to get a real feel of what was going on befor i got into the housing market

im very glad i did but now the decision has been made to stay out of the market in such uncertain times i feel i need to educate myself on safe guarding my savings

not so much making from them just making sure they dont get eroded and are safe, i have 57k in my ftb ac ive wonderd about premium bonds are these safe just to stow away my cash?

thanks in advance

PBs are as safe as the UK government! How safe that is is anyone's guess.

Returns in the form of prize money are quite low.

All in all they're a pretty bad bet, the wife and I have 4k worth...just a bit of fun really!

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  • 145 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
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      • up 5%



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