Value of the Pound

[Hysteresis]

Is there any financial wizards out there.
The value of the pound is in free fall, other currencies are vulnerable but if every currency falls we will be no worse off, but of course the Dollar and the Euro seem to be doing OK, Brown has fkd the pound just the same as he has fkd everything he has had anything to do with.
NOW THE QUESTION.
Banks are unsafe and give next to no interest. The FSA guarantees would be meaningless if a lot of the banks collapsed as there is not enough money in the pot to service the guarantees. If the UK goes bankrupt, then the pound will be worthless, therefore any Stirling you have in the banks will also be worthless. This is exactly what happened in Argentina in the 1930's and look what a mess they are still in. Lots of Argentinians lost ALL of their savings.
What about investing heavily in GOLD. I think a 28lb Ingot of gold can be had for about £200.000. I am not sure as to how to buy and store an ingot of gold or indeed if this is a sensible way to detach ones self from the financial situation.
Anybody got any sensible views on the subject?

 

[JOHNBOY42]

I am not a wizard but I have heard before in volatile markets investors stay away from shares/property and move towards gold as a long term investment pushing the price up
see

http://www.usagold.com/dailyquotes.html

 

[Norcon]

Hysteresis wrote

If the UK goes bankrupt

The UK IS bankrupt.
Thankfully though not all of us have been following the lead off browns foolish spending over the past 10 years and can look forward to the coming years with confidence.

 

[Trazor]

28lb of gold will cost you approx £261,000.00, and for the next 6 months to a year it will rise in price, but remember their is a buying price and a selling price.

If you think the situation is so serious that Britain could default on its debts, then gold is the best way to protect yourself.
Beware though, if and when the current economic crisis abates, and the market begins to climb, gold will very quickly fall in value to its long term average price.

 

[AndrewSchofield]

On a connect point - i understand if the bank with whom i have my savings collapses i understand that i should be able to get my money back (upto the limit) via the FSA scheme. However, what happens if the bank with whom i have my mortgage or a loan with goes belly-up? Would i be expected to pay back my mortgage or would the outstanding loans/mortgages be 'sold' to another lender, and if so, would they be forced to keep the same terms that i am currently on?

 

[Hysteresis]

28lb of gold will cost you approx £261,000.00, and for the next 6 months to a year it will rise in price, but remember their is a buying price and a selling price.

If you think the situation is so serious that Britain could default on its debts, then gold is the best way to protect yourself.
Beware though, if and when the current economic crisis abates, and the market begins to climb, gold will very quickly fall in value to its long term average price.

Sounds like a safe way to go. The way the Buffoon Brown has performed and still deluding himself, the pound is destined for the dustbin along with any saving any of us have. I have never bought gold before but I assume any bank manager will know the procedure. It seems to me that a good way to go would be to buy gold for 12 months then sell off when and IF things stabilise and the UK recovers. Whilst Brown is at the helm I doubt any recovery is imminent even in 12 months. His latest statement of the present situation is "the pangs of a new world order" demonstrates the idiots delusion. He still thinks he is about to save the world and develop a new world financial system. the man is certifiable. He demolishes our financial system and then thinks he is capable of devising a new global system. These are the rantings of a Mad Man. I feel it is necessary to isolate ones self from the consequences off this deluded Idiot.

 

[mattylad]

Have it melted down & made into bling.

Then you can take it with you wherever you go

 

[peteftw]

i like to keep an eye on the commodity markets i think it quite interesting though ive never invested myself.

you can buy gold bullion on ebay for 22grand a kilo, it was 14 a few years ago.

but you would be better off getting shares the gold is never in your house or anything you just have a bit of paper saying who much you own and its value will chnge depending on the market.


here is a graph that shows gold price history:
http://www.usagold.com/reference/prices/history.html

as you can see gold is now more expensive than it ever has been so there is plenty of room for it to lose value, although most forecasts ive seen predict a 0.6% rise in the next 6months.

i would invest in oil if i had the money : http://investing.thisismoney.co.uk/companyresearch/100815/Brent_Crude/company_charts.html

its at a very low level at the min and it is much more likely to double in value compared to gold

the safest option would be to put it in a fixed term bond, anglo irish are offering rates of 4.6%

 

[Hysteresis]

Hi Peteftw,
Those graphs a re interesting in that the gold graph show that gold was a bad investment for the 25 years 1980-2005. the price was sitting around £300-$400 per oz and considering inflation there would have been a considerable loss involves. The price peaked in around 1980 and a disaster for the purchaser at it's peak price. The price has just peaked again and even if the predictions of 0.6% rise is achieved it is not a good return. My thoughts were that the Buffoon Brown is making such an a**e of our economy then maybe gold was a cushion against his incompetence. The graphs of gold prices are a bit scary. Oil is also a very volatile investment but I must agree with you that it's present share price looks tempting. My own 'Gut' feeling is that Oil should be around $70/bbl and supply restriction can get the price back up as and when OPEC want to get better prices. It is all down to which currency or commodity is the safest. If only we knew that we would all be millionaires

 

[Mike2007]

I think investing in solid gold bullion is a sound idea and has crossed my mind. I have bought 22crt casting gold for jewellery making before and there is not anything better than running your fingers through that stuff.
Any paper equivalent is only a guarantee, to which we have seen what happens when you trust anyone these days (including the suits)!
Even if the gold does not rise(at worst) while you have it in your family,it should not drop either.

Make sure its not just plated??

 

[Whitespirit66]

My favourite quote at the moment -

''A weak currency is a sign of a weak economy, and a weak government''
GORDON BROWN 1992


Just one of several pearls of wisdom from 'the boy blunder', that have come back to haunt him. Also reckoned that he had eliminated boom and bust!!

 

[Donkmeister]

I just wish I'd asked to be paid in Euros at my last salary review... a virtual 50% pay rise over a few months!

I exchanged some cash last week for a trip and €200 cost £203... That's worse than 1:1 when you include the commission!!! The continent seems a lot more expensive than this time last year!

 

[Mike2007]

I just wish I'd asked to be paid in Euros at my last salary review... a virtual 50% pay rise over a few months!

I exchanged some cash last week for a trip and €200 cost £203... That's worse than 1:1 when you include the commission!!! The continent seems a lot more expensive than this time last year!

Its a stinking currency you know!

Err ....sorry I meant sinking!