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bigroncoleman

Newbie - Thinking Of Taking The Plunge

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Hi there

For a long time now i have been reading the reasons/arguments for getting out of cash and from early on I have been convinced but have never done anything about it, mainly because i didn't have that much cash to worry about it but i'm now approaching that point.

I've never invested before, just saved in cash each month whatever i can. At the moment i'm sitting about £30K in cash which come the end of the year, i'm hoping to have about £40K in cash, all in ISAs earning ~3%. It's not so much the current inflation rate that bugs me as i could take out an NS&I bond.... I'm scared shitless that another financial crisis is coming in the next 2-3yrs, this time bigger than 2008 and this time it will be a sovereign debt and currency crisis, even here in the UK as the debts just cannot be paid back.

So my initial thoughts is that i'm thinking of sticking at least 40-50% of my cash savings into gold. From reading various posts, most people say start out with physical metal, then after having built up your own collection, you can consider digital gold like Goldmoney or Bullionvault.

So even though Gold has just reached has just hit record highs in Sterling, i don't believe this is because it's in a bubble, it's because the money is being devauled more and more and this is only going to continue. There will be corrections but all the fundamentals exist for it to higher and eventually go mental in a currency crisis.

So, question is, if i go out and buy say a 100 odd Sovereign coins, stash them somewhere safe in my house - other than being uber paranoid, is this a stupid decision? Can you offer me any better advice if you believe the same as me?

Thanks in advance.

BigRon

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Hi there

For a long time now i have been reading the reasons/arguments for getting out of cash and from early on I have been convinced but have never done anything about it, mainly because i didn't have that much cash to worry about it but i'm now approaching that point.

I've never invested before, just saved in cash each month whatever i can. At the moment i'm sitting about £30K in cash which come the end of the year, i'm hoping to have about £40K in cash, all in ISAs earning ~3%. It's not so much the current inflation rate that bugs me as i could take out an NS&I bond.... I'm scared shitless that another financial crisis is coming in the next 2-3yrs, this time bigger than 2008 and this time it will be a sovereign debt and currency crisis, even here in the UK as the debts just cannot be paid back.

So my initial thoughts is that i'm thinking of sticking at least 40-50% of my cash savings into gold. From reading various posts, most people say start out with physical metal, then after having built up your own collection, you can consider digital gold like Goldmoney or Bullionvault.

So even though Gold has just reached has just hit record highs in Sterling, i don't believe this is because it's in a bubble, it's because the money is being devauled more and more and this is only going to continue. There will be corrections but all the fundamentals exist for it to higher and eventually go mental in a currency crisis.

So, question is, if i go out and buy say a 100 odd Sovereign coins, stash them somewhere safe in my house - other than being uber paranoid, is this a stupid decision? Can you offer me any better advice if you believe the same as me?

Thanks in advance.

BigRon

From your post it is clear that you've read and understood the whys and wherefores (a few of them from my own posts I imagine!) and therefore have come to an informed decision. One that unsurprisingly (!) I'll agree is a good one.

Firstly physical is the best place to start, get sovereigns if you can for capital gains exemption reasons (not that they can't change the rules later).

If you must keep them in the house, because they are small and can be easily hidden (under the floorboards for example) burglary is not your biggest concern. Although don't tell anyone that you have them in the house, maybe just one trusted family member in case you suddenly die and leave all your wealth to be discovered by some lucky builder in 40 years time!

Your biggest worry should be a house fire, as at their hottest house fires will get up to temperatures a little above that required to melt gold, not to mention trying to find a few blackened coins in the rubble of your home might prove difficult.

Therefore, if you are to keep them at home I would advise getting a fireproof cash safe box, designed to stop cash burning for half an hour in a house fire, therefore should offer gold protection for half an hour and then some. The are cheap and portable, so no worries there.

Something like this:

Fire and Water Proof home safes

And here's a buyers guide just for clarification:

Buyers Guide

Hope that helps.

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Hi there

For a long time now i have been reading the reasons/arguments for getting out of cash and from early on I have been convinced but have never done anything about it, mainly because i didn't have that much cash to worry about it but i'm now approaching that point.

I've never invested before, just saved in cash each month whatever i can. At the moment i'm sitting about £30K in cash which come the end of the year, i'm hoping to have about £40K in cash, all in ISAs earning ~3%. It's not so much the current inflation rate that bugs me as i could take out an NS&I bond.... I'm scared shitless that another financial crisis is coming in the next 2-3yrs, this time bigger than 2008 and this time it will be a sovereign debt and currency crisis, even here in the UK as the debts just cannot be paid back.

So my initial thoughts is that i'm thinking of sticking at least 40-50% of my cash savings into gold. From reading various posts, most people say start out with physical metal, then after having built up your own collection, you can consider digital gold like Goldmoney or Bullionvault.

So even though Gold has just reached has just hit record highs in Sterling, i don't believe this is because it's in a bubble, it's because the money is being devauled more and more and this is only going to continue. There will be corrections but all the fundamentals exist for it to higher and eventually go mental in a currency crisis.

So, question is, if i go out and buy say a 100 odd Sovereign coins, stash them somewhere safe in my house - other than being uber paranoid, is this a stupid decision? Can you offer me any better advice if you believe the same as me?

Thanks in advance.

BigRon

oh dear

still good luck with it

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Big Ron

There is nothing wrong with your plan. You will safeguard your family's wealth and will survive even hyperinflation. You have learned well, young Skywalker.

I might add that a selection of different types of Precious Metals of varying forms, might be good too. The majority of gold might be in Sovereigns and Britannias, but get something to cope with possible changes of fashion too; such as small coins in case the cost of a large coin becomes very difficult to trade on eBay or similar. Also silver Britannias in case the price of silver overshoots that of gold. Very unlikely, but there are respected commentators who say that silver is running out, whereas gold will always be around, not being a consumable industrial metal.

Diversify into palladium or platinum a little too, if you can. It would only take a single industrial use to be discovered to make Pd/Pt to go back into very high territory again. This also makes silver (for which new industrial uses are being discovered all the time) a must-have buy.

Best of luck, most of the members are very helpful on this forum.

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So, question is, if i go out and buy say a 100 odd Sovereign coins, stash them somewhere safe in my house - other than being uber paranoid, is this a stupid decision?

Thanks in advance.

BigRon

No you're not unless:-

1) You stick up a big neon light saying "GOLD KEPT HERE"

2) You live in a house/area which really drips wealth.

3) You start telling everyone with the aid of a megaphone,

If you live in an average house area like me then no one would guess I had my stash, Btw sorry to say this, but you will be disappointed by how little room 100 sovs take up for your money!

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If you live in an average house area like me then no one would guess I had my stash, Btw sorry to say this, but you will be disappointed by how little room 100 sovs take up for your money!

I had (and missed - bugger) the opportunity to hold a kilo bar of gold in my hand recently. It was the size of a pack of playing cards, and about half the thickness. Not that I could have afforded it, but it was a very subtle sight, sitting there without a price tag on it, in a cabinet with loads of other drippy jewellery tat. The only people in the place that really knew what they were looking at, was me and the proprietor. About thirty-one thousand pounds, and it could have been mine.

Beside it was a kilo bar of Palladium, a bit bigger. Yours for twenty thousand quid, including the disgusting VAT, of course.

Don't be too dismissive of hiding silver though, five kilos is the size of a house brick. Easy to chip a real one out of a wall and cement the silver one in place instead. That's currently four and a half grand of your wealth protected.

(Prices roughly correct as of early June 2011, in case you are looking at this site in the future).

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Many thanks for those who have replied, the advice is very much appreciated.

Even though i plan to buy and hold for the long term (years), what is everyone's experience with having to sell any gold, especially coins? How do most sell?

If i buy from say Bairds (Goldline), sellers like them will buy back or what is the usual approach most take?

As i said, i don't plan on selling once i buy, as these are my life savings and i plan to keep some cash in case of emergencies but just in case the unforeseen comes up....

Thanks

Ultan

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If you get a fireproof safe, you may be safe from fire, but won't the safe be hard to hide and attract thieves?

Also, how common is it for burglars to use metal detectors to find hidden coins in the walls, under the floors, buried in the ground, etc?

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If you get a fireproof safe, you may be safe from fire, but won't the safe be hard to hide and attract thieves?

Also, how common is it for burglars to use metal detectors to find hidden coins in the walls, under the floors, buried in the ground, etc?

Well, as far as I know, just about never. They want something fast for the next fix or easily saleable or something like an iPod that they can use. I would imagine a burglar wants in and out quickly. Fireproof safes with metal inside are immovable. They weigh too much. Put it inside a cheap item of wooden furniture and don't worry. There are a thousand places you can hide a fire safe in the average dwelling, and that's before you have considered building it into the fabric of the building.

Remember you are up against a person who doesn't have the intelligence or motivation to be anything in life, who has probably also fried his tiny mind with drugs, and who is already needing his next fix. He will be like a paranoid rat - jumpy and dangerous, but nothing a blow with a shovel can't rectify. This is not an issue compared with government interference.

Look at ten sovereigns sometime, or lay out ten 10 pence coins on a table if you want a similar size in non-PM coinage. That's two and a quarter thousand pounds at June 2011 prices. Are you telling me you can't hide that?

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If you get a fireproof safe, you may be safe from fire, but won't the safe be hard to hide and attract thieves?

Also, how common is it for burglars to use metal detectors to find hidden coins in the walls, under the floors, buried in the ground, etc?

I think gold starts melting at 1000C so I wouldn't bother if I was you...

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If you get a fireproof safe, you may be safe from fire, but won't the safe be hard to hide and attract thieves?

He would be putting a safe in not a neon fking sign.

Besides which, if it gets stolen from an approved safe it is insured.

Also, how common is it for burglars to use metal detectors to find hidden coins in the walls, under the floors, buried in the ground, etc?

.....er...not very? They are there to steal jewelry, cash and items that can be sold not spend the weekend prospecting in your garden.

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If you are really scared then do what the prisoners did in the book Papillion by Henri Charr. They would have a short cigar tube which they would use to store their valuables and money.

They would stuff it up their bum and keep it there for years! Sovs and half sovs can probably easily be hidden in this manner. Kruggeranfs probably less so.

Heh the best defence tbh though is that nobody knows about it.

My motorbike for instance. On my street there are a spate of bike thefts. People roll them out Sundays and wash them so people know they have bikes. Me my bike is hidden to the side of the building behind a big wheelie bin and has a wooden box covering it. It has pretty crappy security. but because nobody knows it is there few people try to steal it.

My bicycle OTOH was chained at the front of the building.

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If you get a fireproof safe, you may be safe from fire, but won't the safe be hard to hide and attract thieves?

The dangers of safes is not in the safe itself. It is in the buying of the safe, when you buy it from a dealer the dealer knows you have a safe cus he sold it to you. He can now safely assume you have something valuable to stick inside the safe.

Either maliciously, telling a scrote mate and or giving him a copy of the key. Or accidentally when he's had a few too many pints down the pub. People now know you have a safe and something valuable inside it.

I'm pretty sure this is why Mr Yu keeps getting his house broken into. He only started getting break ins when he bought a massive massive safe to hide his money in.

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Yes, I have considered that too.

Insurance approved safes can only be bought at companies that stock them and because of their size they have to be delivered. Not only do the staff at the company know that you bought a safe but so does the delivery driver.

And then it has to be properly installed......

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  • 284 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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