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killerbee

Is Your Cash Safe If The Worst Happens.

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Hi all,

Some on here suggest the downturn is going to be on the scale of 1929, now since I have no experience of this event I was wondering what happened to the value of cash during the great depression. Also where did the smart money go?

(I thinking I ought to get ready for a dose of financial indigestion)

killerbee.

Edited by killerbee

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Hi all,

Some on here suggest the downturn is going to be on the scale of 1929, now since I have no experience of this event I was wondering what happened to the value of cash during the great depression. Also where did the smart money go?

(I thinking I ought to get ready for a dose of financial indegestion)

killerbee.

Assets went down in value (stocks, houses). Gold went up (USD needed to be revalued at more USD per oz gold).

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Assets went down in value (stocks, houses). Gold went up (USD needed to be revalued at more USD per oz gold).

shame gold was confiscated in the US before it was revalued upward.

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The modus operandi of the financial elite is to deflate asset prices

such as houses and shares suddenly by calling in the credit which

they issued to inflate the bubble in the first place.

Then when the dust has settled devalue the currency, taking out any

wealth that was kept in cash.

The only real safe haven is non-leveraged tangible assets,

such as gold, silver, coffee beans etc.

It happened in the depression, the 70s, the 90s, and it will likely

happen again this time around.

Edited by Dr Doom

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The situation is a bit different from 1929 because US government did not guarantee bank deposits then. If a bank folded, depositors could lose everything, whereas today in the UK our cash up to 35k with each bank is guaranteed (I think 90% or so of the value is guaranteed).

So we will probably not lose our cash as happened to some in the great depression.

The worry is whether inflation will be making the cash worthless.

Agreed with notanewmember: The rate of inflation / deflation is key.

I spread my savings between 50% cash (good in deflation), 30% index-linked certificates & index-linked gilts (good in inflation) and 20% gold / foreign currency (good in hyperinflation).

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Criminals!

yep, they can do whatever they want

wouldn't want to hold 'electronic' gold in that situation....

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Hi all,

Some on here suggest the downturn is going to be on the scale of 1929, now since I have no experience of this event I was wondering what happened to the value of cash during the great depression. Also where did the smart money go?

(I thinking I ought to get ready for a dose of financial indegestion)

killerbee.

Is Your Cash Safe If The Worst Happens., What happens to the value of cash.

......worst case scenario in modern times .....check out the zim dollar......1929 may be mild compared to the next biggy.... Yu-Gi-Oh, Trading Cards may be a better bet...... timing remains crucial

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Hi all

Ok, firstly having never bought gold, what is best way? Can I get it at any of the high street banks?

and secondly, are we talking just USD or a spread of certain foreign currencies held in cash?

killerbee

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Hi all

Ok, firstly having never bought gold, what is best way? Can I get it at any of the high street banks?

and secondly, are we talking just USD or a spread of certain foreign currencies held in cash?

killerbee

gold coin bullion is usually the easiest way to hold physical gold for a small investor

easiest way i've found is over the web @ goldline.co.uk - just add whatever coins to want to your 'cart' and press the order button

you'll receive a stock confimation email in a day or so and then you either bank transfer or send them a cheque

Edited by dnd

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I think that the only true safe place for cash is government bonds and National Savings products.

I have been deliberately undertaking an orderly liquidation of my equity portfolio over the last 12 months and stashing it in National Savings because it is easy to do. I know the UK Government could go bust but that really is quite unlikely at the moment.... but I am on the look out for any serious 1970s style problems (i.e IMF being called in etc.) and will be out into Swiss Govt bonds if necessary.

If deflation in asset prices or even in retail prices happens then my cash will be worth a lot more in terms of what I can buy with it in a few years time. Big risk is that BoE lets inflation off the hook of course.

I am looking for a once in a lifetime opportunity to go back in to asset markets at seriously discounted prices.

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I dunno for sure, but I got paid today and just withdrew everything just like every month. Just in case :lol:

Pay out day, in one hand and out the other. :lol:

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I am looking for a once in a lifetime opportunity to go back in to asset markets at seriously discounted prices.

brave and risky - good luck

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Guest Bart of Darkness
easiest way i've found is over the web @ goldline.co.uk - just add whatever coins to want to your 'cart' and press the order button

What coins do you buy dnd?

I've noticed that Goldline have a wide selection but if coins like Britannias are in short supply (re. the thread on Gold) what do Goldline do if you order stuff that they turn out not to have?

Edited by Bart of Darkness

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What coins do you buy dnd?

I've noticed that Goldline have a wide selection but if coins like Britannias are in short supply (re. the thread on Gold) what do Goldline do if you order stuff that they turn out not to have?

based on my own experiences they send you one of the following emails when you put an order through the website..

We are pleased to confirm that the stock is available, and can confirm a total purchase price of £...

In order for your product(s) to arrive safely at your address we will arrange for it to be sent out by Royal Mail Delivery. Please kindly add £... for postage and packing and arrange for the total of £.... sent to us within two working days

...and then i post a cheque out

or when i recently tried to order 5 britannias...

Dear Sir,

We are currently out of stock on Britannia's.

Kind Regards

Baird & Co.

i can get kruggers no problem - so all my gold bullion is in them atm

not happy with the cgt situation but if i can't get hold of the britts then there is little i can do about it...

Edited by dnd

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Hi all,

Some on here suggest the downturn is going to be on the scale of 1929, now since I have no experience of this event I was wondering what happened to the value of cash during the great depression. Also where did the smart money go?

(I thinking I ought to get ready for a dose of financial indigestion)

killerbee.

I think these people are wrong, because things are different now in the sense that 1929 should not repeat in the US. The repeat will most likely be in China, since they have the role now, the US had in 1929.

In the twenties the US were borrowing money to everyone so they could buy their goods. Just like china today. Look at what happened to the countries borrowing money from the US back then, to understand what could happen to the US now.

Edited by carseller

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I looked the goldline website and buying seems straight forwards a britannia is £359.75 but I couldn't see anything about selling them back. Do they buy them back? At what price/fee? Do you just send the coins back special delivery?

Also , I don't feel comfortable about storing them at home.

Kilerbee

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Please accept my on-going apologies for all the newbie questions while I continue to struggle to get up to speed...

You have to decide what the end game will be - Deflation, Hyperinflation or stagflation.... So hard to tell!

What is the best thing to do (or, rather, to have done) should stagflation happen?

I spread my savings between 50% cash (good in deflation), 30% index-linked certificates & index-linked gilts (good in inflation) and 20% gold / foreign currency (good in hyperinflation).

What do people mean when they say their savings are in 'cash'?

not happy with the cgt situation but if i can't get hold of the britts then there is little i can do about it...

Could you not buy sovereigns instead in order to gain exemption from CGT?

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Please accept my on-going apologies for all the newbie questions while I continue to struggle to get up to speed...

1. What is the best thing to do (or, rather, to have done) should stagflation happen?

2. What do people mean when they say their savings are in 'cash'?

3. Could you not buy sovereigns instead in order to gain exemption from CGT?

1. Can't answer this really, although I'm sure someone else will be able to. I've yet to form a full opinion on this. I'm sure some would say being in gold (or other assets) is good in a stagflationary environment, but I'm not fully sold on the idea. Just wait for interest rates to go up? (and up and up)

2. It just means money in current accounts and savings accounts and cash ISAs. I'm 70% cash as of 1st July 2007. Although I'll be dropping more cash into NS&I Linked Certificates next week.

3. Yes, half and full sovereigns are an option.

Edited by christh

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Could you not buy sovereigns instead in order to gain exemption from CGT?

yep, it's just the quantities involved - roughly 3x the number of coins

could prove a little difficult to shift a large number of these on ebay for example

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The situation is a bit different from 1929 because US government did not guarantee bank deposits then. If a bank folded, depositors could lose everything, whereas today in the UK our cash up to 35k with each bank is guaranteed (I think 90% or so of the value is guaranteed).

So we will probably not lose our cash as happened to some in the great depression.

The worry is whether inflation will be making the cash worthless.

Agreed with notanewmember: The rate of inflation / deflation is key.

I spread my savings between 50% cash (good in deflation), 30% index-linked certificates & index-linked gilts (good in inflation) and 20% gold / foreign currency (good in hyperinflation).

I wonder if the FSA scheme would work in practice if there was a major banking crisis,since the insurance levies collected from the various institutions would probably only cover one insolvency not wholesale insolvencies.The only way such a scheme would work is if larger investors funds over 35K were milked to replace the lost funds of those with less than 35K.I did write to the FSA to ask if this transfer of assets from larger investors to smaller investors would occur in such an event before the bankrupt institution had recourse to the FSA compensation fund(since I have a rather large sum in that sub-prime lender Northern rock :blink: ).They replied that all investors would receive a pro-rata cut of the recovered assets,so those under 35K would only have recourse to a very small emergency fund.

Let's face it until the HPI turns negative I doubt there is too much risk.I am going to spread my money out a bit, though, come the autumn.It is greed,when I could get a reasonable 5.3% in a safe NS and I Investment Account or more if I was prepared to lock my money up in the index-linked NS and I and increase my holding as new issues came up;but I always get drawn in by those eye-catching Bonds(currently paying around 6.5%).So if s**t does hit the fan ,I have only myself to blame.

Edited by crashmonitor

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I wonder if the FSA scheme would work in practice if there was a major banking crisis,since the insurance levies collected from the various institutions would probably only cover one insolvency not wholesale insolvencies.The only way such a scheme would work is if larger investors funds over 35K were milked to replace the lost funds of those with less than 35K.

That is my worry too. That is why I am into government bonds and NS&I with my spare cash.

My Dad was told by an financial advisor about 6 months ago to put his spare cash into Northern Rock. I advised him to go for NS&I Income Bonds instead. For once, he took my advice.

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I looked the goldline website and buying seems straight forwards a britannia is £359.75 but I couldn't see anything about selling them back. Do they buy them back? At what price/fee? Do you just send the coins back special delivery?

Also , I don't feel comfortable about storing them at home.

Kilerbee

iirc they have a presence on ebay and i've seen prices listed for buyback and, yes, you just post them

check if your home insurance covers gold bullion for peace of mind

Edited by dnd

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