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What To Do With Capital?

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May seem like an odd question, but hoping for some useful pointers.

Imagine this scenario. You believe in the forthcoming crash and global slowdown. You've sold to rent. You have a decent lump of capital left over, which you want to shelter from the future instability. What do you do with it?

So far, I've grasped the concept of splitting it up, and putting no more than 10% in each currency/asset class. But there seem to be so many different opinions as to what to actually buy, I'm really confused.

Gold and silver seem popular, so maybe 10% in each. How do you know where to buy gold + silver? A search brings back lots of places, but I don't know who to trust.

What else? Some foreign currency? Which? How do you buy it?

Anything else? Thoughts/advice much appreciated.

TIA

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Yep - diversify, but don't risk too much.

Gold = goldmoney.com, kitco.com (I believe) sure there are others. Depends if you want

physical gold or not.

Foreign Currency = most banks will open offshore accounts for you - just ask the conditions.

for the record, I've filled my Cash ISA up (you have time to put 3K in before april and another 3K after beginning of april).

I've also invested in a fund wrapped in a ISA - I can put 4K into this per tax year. Gonna add more to it

before tax year is up.

I have some in high interest savings, 5% in stocks n shares, and a few hundred quid in premium bonds - just for a laugh!

Take your time choosing.

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your number one priority for such a scenario is to preserve your capital invest in only liquid assets

If you like gold and silver then I have nothing against allocating a proportion of you capital into them as long as you don't go overboard. 10 - 15 % should be enough

split the rest 33% 33% 33% cash / fixed income / high yield Equities

if you want to get advanced rebalance each 1 year based on the yeild of each asset class. allocating most to the asset class that yeilds most.

Im a risk taker though so capital preservation is not my main priority.

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Gold = goldmoney.com, kitco.com (I believe) sure there are others. Depends if you want

physical gold or not.

Thanks. Is there any way of verifying the safety and stability of such companies?

for the record, I've filled my Cash ISA up (you have time to put 3K in before april and another 3K after beginning of april).

Yes, same here.

Thanks for the input.

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your number one priority for such a scenario is to preserve your capital invest in only liquid assets

If you like gold and silver then I have nothing against allocating a proportion of you capital into them as long as you don't go overboard. 10 - 15 % should be enough

split the rest 33% 33% 33% cash / fixed income / high yield Equities

if you want to get advanced rebalance each 1 year based on the yeild of each asset class. allocating most to the asset class that yeilds most.

Im a risk taker though so capital preservation is not my main priority.

seems like a decent strategy to me

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Thanks. Is there any way of verifying the safety and stability of such companies?

Yes, same here.

Thanks for the input.

Not sure. There are some gold enthusiasts here who may be able to help.

I've not invested in gold - was going to mid last year but didnt (what an idiot)! :lol:

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If you like gold and silver then I have nothing against allocating a proportion of you capital into them as long as you don't go overboard. 10 - 15 % should be enough

Thanks. I was looking at gold price, and it seems to me they're significantly higher than long-term average - presumably the same rules apply as any assets, and this is not a good time to buy - or am I missing something?

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Thanks. I was looking at gold price, and it seems to me they're significantly higher than long-term average - presumably the same rules apply as any assets, and this is not a good time to buy - or am I missing something?

I'm in pretty much the same position as you. Capital protection is the priority for me.

That means cash is still very important. I'm splitting it between various 5% sterling accounts.

It would be good to get some into other currencies. The two problem are which currencies to go for and the low rates of interest. Calling currency movements is a very dodgy game. However, definitely not the dollar. Nationwide International offer a Euro account with a not too bad an interest rate. HSBC and Bank of Scotland also do Euro currency accounts - but the interest rates are low. The yen looks good as a long term bet against the dollar and eventually steling but in the meantime expect virtually no interest. HSBC do a yen account. You can open a Swiss Bank account in any currency, including Swiss Francs, but you'll pay £450 just to open it.

I have also gone for maximum Premium Bonds - it's safe and for higher rate tax payers gets your money out of the reach of the tax man. With the max you should get steady small wins and who knows you might get luckier.

I'm generally very distrustful of equities (except for ones related to gold and maybe other commodities). They are back near the pre2000 crash level and I think the values are not warranted. If I had the time I would play the market a bit because there are still gains to be made on some equities. But not for much longer I think and it takes constant attention.

Having said that Ruffer do an interesting fund called "Total Return" based on selective equities, cash, and government bonds (from various countries). Maybe, maybe - but I recently decided against on the grounds that it is too into equities for me. But I'd have a look.

I like gold and think over the next two or three years it is on a bull run. Personally I expect $900 an an ounce eventually - maybe more. It's a good hedge against inflation and great in times of economic and political uncertainty. In deflation it should keep more of its value relative to other assets. As you'll find out I'm far from alone in thinking this. Moneyweek, for example. Now is not a bad time to buy. True 2000 - 2004 was really the time to get in for gains made up until now but I think there is still a way to go. Gold is in a dip right now at around $550. There are many ways to buy. I have gone for Lyxor Gold Bullion Securities, bought through a Squaregain account. I'd also suggest Merril Lynch's Gold and General Fund - mostly equities in gold mining. It is also in a dip right now. You can hold it in an ISA. Get it through a fund supermarket though, you'll pay lower fees.

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  • 301 Brexit, House prices and Summer 2020

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      • down 5% +
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