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A Run On The Pound, And How Could We Protect Our Money?


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HOLA441

Really would advise against bullionvault. I lost a chunk of cash on this POS investment. The trouble is fees just keep coming and if the value is static or declining you have to buy more to just stand still. Luckily I bought more physical than anything else.

Conversely my last FTSE 250 tracker was excellent. Wish I had put more into it.

Edited by 23rdian
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HOLA442

If you want to diversify in currency terms and are willing to look at the stock market, why not use use a tracker denominated in USD? Any difference in exchange rates will be reflected in that i.e. use currency risk to your advantage. No need for a foreign bank account though you are dependant on stock market valuations.

Or use a physical gold ETF. Or bitcoin. Or a selection of all these things?

Depends on how much you're trying to preserve the value of. Buying VUSA or SGLN through a S&S ISA would probably be the easiest way for those suggestions, unless you've got big lump sums. Bitcoin probably cheapest from coinfloor in the UK, though if you want to keep it completely off the radar use a bitcoin ATM.

This is not advice, DYOR, etc...

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HOLA443
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HOLA444

UK taxation is self assessment, it's the individuals responsibility.

A better explanation than I could give:

https://en.wikipedia.org/wiki/Gilt-edged_securities

They can be bought individually or more usually through investment funds.

You can buy them through an ISA tax free. <_< hmmmmm

what are gilts going for nowadays? 4%

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HOLA445

For now.

BTW, has anyone seen the story about Osborne changing the rules so you won't be able to take 25% of your pension fund tax free? This from the Grauniad http://www.theguardian.com/politics/2016/feb/21/4bn-raid-pension-savings-tax-free-lump-sum-osborne

the Wail also has the same story.

Are not more than few mortgages due to be paid off with the these lump sums ?

That could cause a few problems

While I accept that getting tax relief of both ends of the pensions process is a anomalous it should be noted that while most people only get Basic Rate Tax Relief when paying money into the system they could easily end up paying 40% plus on a lump sum on the way out if it is over a certain amount.

I now Osborne is desperate for cash but he is basically committing political suicide if he wants to lead the Tory party if these proposals are true.

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HOLA446

For now.

BTW, has anyone seen the story about Osborne changing the rules so you won't be able to take 25% of your pension fund tax free? This from the Grauniad http://www.theguardian.com/politics/2016/feb/21/4bn-raid-pension-savings-tax-free-lump-sum-osborne

the Wail also has the same story.

They cannot leave anything alone for 5 ******ing minutes can they?

And people are supposed to plan around this shyte.

It's almost as if they're doing it on purpose.....

They will also throw the pound to the wolves now and blame Boris.

Pathetic.

Criminal.

Bastards.

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HOLA447
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HOLA448

You can buy them through an ISA tax free. <_< hmmmmm

what are gilts going for nowadays? 4%

More like 1.4%

FTSE100 divis are around 4% but obviously a lot more risky.

I went for FTSE100. If the divi is maintained and the index can maintain its real value, then that's a 5-6% real return, tax-free in a SIPP, subject of course to a whole dollop of risk (both upside and downside).

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HOLA449

Silver, is much cheaper than gold, and by some accounts is way under valued. Unfortunately silver is taxed with VAT. I've seen some websites, and just looking at the tax puts me off buying. However, after a bit of digging, I found that Estonia does not place VAT on silver, which allows one to buy silver at just slightly over spot. PROBLEM is, you have to get the silver from Estonia, meaning you loose out on shipping.

So maybe metals are not the way to go.

For what it`s worth, you can buy silver here, VAT free: https://www.silver-to-go.com/en/silver-coins/maple-leaf/maple-leaf-silver-1oz-2016/

I have, with no problems.

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HOLA4410
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HOLA4411

http://www.ft.com/cms/s/0/2429af50-daaf-11e5-a72f-1e7744c66818.html#axzz415jM8L6D

Concern over Britain’s place in the EU has pushed the pound below $1.39 for the first time since 2009, a level associated with previous crises for the currency.

Sterling dropped as much as 1 per cent against the US dollar to an intraday low of $1.3879 on Wednesday — the lowest in seven years.

The $1.40 level has long been seen as a de facto floor for the pound, and one it has rarely traded under for an extended period since the mid-1980s.

Dun Dun Duuuuuuun

I was right

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HOLA4412

At the best, Cameron's decision will subject the country to four months of acute political and economic uncertainty in the run-up to the referendum. At the worst, in the event of a vote for "Brexit," as Cameron himself acknowledges, it could lead to "seven years of uncertainty" that would damage jobs, investment and the financial services sector.

From an economic point of view, the timing of the Brexit referendum could hardly be worse. The United Kingdom is presently running close to its largest external current account deficit in the post-war period. As Bank of England Governor Mark Carney recently reminded us, this makes the United Kingdom uncomfortably dependent on the "kindness of strangers" to finance that deficit.

A further factor putting sterling at risk is the fact that the U.K. economic recovery now appears to be running out of steam while the British government is still intent on a budget-tightening path to improve the country's public finances. This will makes it very difficult for the Bank of England to raise interest rates to defend the currency.

http://thehill.com/blogs/pundits-blog/international/270542-are-we-heading-for-a-british-sterling-crisis

Dun Dun Duuuuuuun

I was right

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HOLA4413
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HOLA4414
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HOLA4415

Ridiculous that ordinary people are forced into all this stuff. I just wanted somewhere to live but now I have to learn about foreign currencies, world politics, lunatic central bank shenanigins, investment strategies, just to stand still until house prices are back in reach. Before this I never thought beyond how much were my euros for Benidorm :(

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HOLA4416
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HOLA4417
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HOLA4418

Ridiculous that ordinary people are forced into all this stuff. I just wanted somewhere to live but now I have to learn about foreign currencies, world politics, lunatic central bank shenanigins, investment strategies, just to stand still until house prices are back in reach. Before this I never thought beyond how much were my euros for Benidorm :(

:D

Look on the bright side. You're all the better for having learned about them ;)

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HOLA4419
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HOLA4420
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HOLA4421

I'm transferring most of my sterling to Euro tomorrow. 1.26 seems about as good as it will get for a while. I've bills to pay in euro's.....

Transferred the bulk when it was at 1.41 so I've had a good run. ?

Expect it to drop to around 1.05 or less, as happened the last time the UK went into recession.

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HOLA4422

not the best timing to change into euros when the pound is soo weak, talk about selling low and buying high.

the £ will bounce back up when the IN voters win anyway. recession and HPC is the biggest risk for the £ as we certainly are not the cleanest dirty shirt anymore.

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HOLA4423
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HOLA4424

Ridiculous that ordinary people are forced into all this stuff. I just wanted somewhere to live but now I have to learn about foreign currencies, world politics, lunatic central bank shenanigins, investment strategies, just to stand still until house prices are back in reach. Before this I never thought beyond how much were my euros for Benidorm :(

yep, part of being a fully functioning adult really. If you don't learn about it your just going to be people farmed your whole life. moooo

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HOLA4425

I'm transferring most of my sterling to Euro tomorrow. 1.26 seems about as good as it will get for a while. I've bills to pay in euro's.....

Transferred the bulk when it was at 1.41 so I've had a good run.

Expect it to drop to around 1.05 or less, as happened the last time the UK went into recession.

Are they the latest print edition Euros, or the new batch coming in March.

Britain maybe screwed but the US and EU are equally as bad.

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