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Protecting My Savings In Australia.

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I would be grateful for any advice anyone has on this topic.

Having sold our UK house a couple of months ago we have a chunk of equity to take with us when we make the move to Australia later in the year. My concern is that there does not seem to be any protection from banking failure down under as we have in the UK. So if a bank goes belly up, we are not guaranteed our cash back although depositors have first claim on the banks assets to recover their savings.

I am nervous about transfering the cash due to this but am also worried in case sterling continues in this downward spiral.

Is there any way of protecting our cash in Australia should we decide to move it?

Thanks in advance.

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I would be grateful for any advice anyone has on this topic.

Having sold our UK house a couple of months ago we have a chunk of equity to take with us when we make the move to Australia later in the year. My concern is that there does not seem to be any protection from banking failure down under as we have in the UK. So if a bank goes belly up, we are not guaranteed our cash back although depositors have first claim on the banks assets to recover their savings.

I am nervous about transfering the cash due to this but am also worried in case sterling continues in this downward spiral.

Is there any way of protecting our cash in Australia should we decide to move it?

Thanks in advance.

You are right. There is NO protection of deposits. There used to be if your deposit was with a bank (as opposed to a building society) but that is ancient history.

Sorry I can't be of more help

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Guest DissipatedYouthIsValuable
I would be grateful for any advice anyone has on this topic.

Having sold our UK house a couple of months ago we have a chunk of equity to take with us when we make the move to Australia later in the year. My concern is that there does not seem to be any protection from banking failure down under as we have in the UK. So if a bank goes belly up, we are not guaranteed our cash back although depositors have first claim on the banks assets to recover their savings.

I am nervous about transfering the cash due to this but am also worried in case sterling continues in this downward spiral.

Is there any way of protecting our cash in Australia should we decide to move it?

Thanks in advance.

"Aww, mate, you don't need to worry about banks in Australia. This housing boom is going to go on forever. We dig stuff out the ground and sell it to the Chinks. She'll be right. You've got more worries with your toddlers playing with crocs or getting their arses bitten by Funnelwebs when they do potty training."

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You are right. There is NO protection of deposits. There used to be if your deposit was with a bank (as opposed to a building society) but that is ancient history.

Sorry I can't be of more help

The UK and the US both guarantee a certain level of funds, so does anyone know why Australia doesn't? With the financial tsunami about to hit Australia one would think this was a smart idea. I have funds I weould like to transfer to Australia but with their stock exchange falling through its own arsehole I can't help but think there are better places to leave one's money than in an unprotected bank account.

What do Australian savers do to protect themselves?

And please don't say buy houses.

Edited by Thucydides

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The UK and the US both guarantee a certain level of funds, so does anyone know why Australia doesn't? With the financial tsunami about to hit Australia one would think this was a smart idea. I have funds I weould like to transfer to Australia but with their stock exchange falling through its own arsehole I can't help but think there are better places to leave one's money than in an unprotected bank account.

What do Australian savers do to protect themselves?

Dude - there is NO protection in Australia. The government are TALKING about introducing some but talk is cheap.

I have had my cash savings in my rifle safe since Northern Rock fiasco. Most people don't even know what a bank run is let alone prepare for one.

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Dude - there is NO protection in Australia. The government are TALKING about introducing some but talk is cheap.

I have had my cash savings in my rifle safe since Northern Rock fiasco. Most people don't even know what a bank run is let alone prepare for one.

Talk about third world. I hear savings are not protected in Zimbabwe either. Maybe a revolver is the best form if protection?

But seriously, all those millions of Australians with $1000, $10,000, £100,000 in the bank are totally unprotected at ttime like this? Can anyone explain to me why every single Australian has not tried to withdsraw his life savings yet?

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If you are attracted by owning gold then the Perth Mint provides an excellent service.

http://www.perthmint.com.au/investment_inv...d_overview.aspx

So you buy the gold and these happy people keep it locked up for you? Two issues - first, gold is losing value, no? Second, can our good governments not make you sell gold compulsorily at a price they set?

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No they DON'T

Perth mint has been most obtuse in meeting their delivery obligations. DYODD

I am unaware of such problems, but keen to learn of them.

Please elaborate and provide links if possible. Thanks.

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Talk about third world. I hear savings are not protected in Zimbabwe either. Maybe a revolver is the best form if protection?

But seriously, all those millions of Australians with $1000, $10,000, £100,000 in the bank are totally unprotected at ttime like this? Can anyone explain to me why every single Australian has not tried to withdsraw his life savings yet?

Sure can. Better yet I'll explain it in one word - IGNORANCE ;)

Speaking with my mother tonight about superannuation. She was bitching about how much her super has gone down with the stock market crash. I told her that I had changed my super to "cash" option late last year and lost NADA. She was astounded that I could do this (change from shares to cash) and was totally ignorant that it is an option with every single fund. Sheesh and she had the cheek to lecture me about saving money (doing just fine thank you very much - just don't feel the need to brag about it like the BTL brigade do)

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Thanks for all your replies. Had a feeling this was the case but thought I'd ask you knowledgable people on here!

Will have to have a think about what to do with it now. After having bailed out of the housing market in the nick of time I don't fancy losing the cash to a failed bank.

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Thanks, though the second link above won't work for me.

This could be very serious. If there really is gross incompetence or even corruption in the supposedly squeaky-clean WA government owned Perth Mint then safety in gold is much more problematic than it appears.

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Thanks, though the second link above won't work for me.

This could be very serious. If there really is gross incompetence or even corruption in the supposedly squeaky-clean WA government owned Perth Mint then safety in gold is much more problematic than it appears.

Here you go

Are Perth's silver stocks low?

Tuesday, 17 June 2008

Crikey intern Lachlan Taylor writes:

A storm appears to be brewing around The Perth Mint, with speculation that the Mint’s precious metals pool has run dry. There have been recent reports from customers of delays or refusals from the Mint when making requests for the delivery of silver.

The Perth Mint Certificate Program allows customers to purchase precious metals without the burden of having to personally store them. However, dozens of customers have reported long delays or straight refusals from the Perth Mint when trying to physically collect their silver.

The Mint is wholly-owned by the Western Australian Government, who fully guarantee the certificate program. The PMCP is the only certificate program in the world which has such government backing.

Currently the Mint has a precious metals liability of $880 million dollars, with $380 million going to subsidiaries to be used as an operating pool. With this much liability it seems inconceivable that the Mint could have run short of silver, and yet the signs seem to point to this. The Mint has told customers that there is no shortage, and that the delay is in production. But surely with an $880 million dollar operating pool they could ensure that production is completed on time.

Jason Hommel from SilverStockReport.com has had complaints from 30-50 of his 80,000 subscribers, and has informed the WA government on their behalf -- to no avail.

Two readers also sent in emails they had received from Nigel Moffet, the Treasurer and manager of The Perth Mint, which suggested an unhealthy reliance on the government.

Moffet reportedly said that investors in the certificates do not need to worry about the solvency of the Perth Mint, but rather the solvency of the government of Western Australia, which has a surplus of $2 billion/year.

If The Perth Mint were selling silver futures without the actual bullion, it would be a serious breach of the Fair Trading Act.

Hommel believes that any sort of government bail-out would send silver prices skyrocketing, as has happened before with gold prices, and could further destabilise world currencies.

The Perth Mint has refuted these “absolutely baseless” allegations and stressed that they are “audited rigourously” by the WA government and independent companies such as PricewaterhouseCoopers.

They also pointed out that all PMCP precious metals are insured by Lloyd’s of London, and that the Western Australian government has a AAA rating from Standard and Poor’s.

But with the price of silver set to soar (and therefore the amount of the Mint’s liability), troubling questions still remain.

Send your tips to boss@crikey.com.au, submit them anonymously here or SMS tips and photos to 0427 TIP OFF.

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I am in Oz and have silver with the Perth mint - I looked into these rumours and personally I am satisfied we are just talking about delivery delays resulting from a surge in demand - 1000oz bars have to be smelted into what people are asking for. It is backed by the WA govt which atm looks like a pretty sound bet. DYOR but the Perth mint to my mind is a good PM option with reasonable spreads which incorporate storage costs for an unlimited period.

I had a fair whack of cash in CBA - I would not be too worried about a big 4 bank failure in Oz if push came to shove I don't see the Oz govt letting depositors lose out, but yes - it is all true about the lack of a defined deposit protection system.

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