Investment advice? NLC

[Kugaman1]

Hi all,
I have a few bob built up in the bank gaining virtually no interest.
Whilst Im not a fan of scaremongering, I do have serious concerns about this countries spiralling debts. Im quite concerned that as soon as interest rates go up, the country wont be able to service the interest on its debts and we will spiral into a major economic collapse.

Therefore, Im looking to invest my money in something thats not linked to UK banks or paper money.
Im thinking of buying kugerrands as gold prices seem to have levelled out now. Any body with any thoughts on this tricky topic?
Im certainly no financial wizz, but have no mortgage so manage to save a bit up every month and as the amount grows, my concerns about the countrys debts increase.....
The money we have is our life savings so we dont want any major risk and gold seems a fairly stable choice?


Any comments appreciated.

Andy

[ed]

I would suggest talking to BigD.

http://www.wattfinancialsolutions.co.uk

[tenkfeet]

No advice but article in Sunday Times said Gold was out of favour as people go into equities. It has lost 30% since its peak. You will also be exposed to variations in gold and currency prices.

Think we are coming out of a major economic collapse and the world never ended.

S1 Exige or 340R is a safe place for cash.

Alan H

[Dominic]

I would suggest talking to BigD.

http://www.wattfinancialsolutions.co.uk

[Rag_It]

Surely you just want to splurg it on a new Exige V6 - seems to be the popular choice on here....

Alternatively, you could do that once you've spoken to Donald, received some sound financial advice, ignored it and bought the Exige from Murray's!

Dave

[neil]

Surely you just want to splurg it on a new Exige V6 - seems to be the popular choice on here....

Alternatively, you could do that once you've spoken to Donald, received some sound financial advice, ignored it and bought the Exige from Murray's!

Dave

Probably a safer place to put your money than gold too

[Kugaman1]

Dont tempt me....an Exige would be a dream.....but common sense has to kick in!

Still investigating options, but gold price seems to have bottomed out just now and thats whats making me steer towards buying some Kugerrands!

[point n squirt]

Hi all,
I have a few bob built up in the bank gaining virtually no interest.
Whilst Im not a fan of scaremongering, I do have serious concerns about this countries spiralling debts. Im quite concerned that as soon as interest rates go up, the country wont be able to service the interest on its debts and we will spiral into a major economic collapse.

Therefore, Im looking to invest my money in something thats not linked to UK banks or paper money.
Im thinking of buying kugerrands as gold prices seem to have levelled out now. Any body with any thoughts on this tricky topic?
Im certainly no financial wizz, but have no mortgage so manage to save a bit up every month and as the amount grows, my concerns about the countrys debts increase.....
The money we have is our life savings so we dont want any major risk and gold seems a fairly stable choice?


Any comments appreciated.

Andy

If its all your savings surely better to do a spread gold,property,stocks,etc

[Shug]

I would genuinely look to speak to a proper expert on a paid basis (like Donald, above) rather than taking advice from a car forum

[fudnie]

Obviously it depends on how much we are talking but Santander are offering 3% upto £20,000 and you can have four of these accounts so upto £80,000. 3% isn't great but it's not too bad and I think fairly risk free.

(I have a history of giving bad advice )

[GBSGR5]

Any chance you could post a link to that Santander offer ? I can't see it on their website.

[fudnie]

http://www.santander.co.uk/csgs/Satelli ... ewSelector

It's the 3-2-1 current account. Tbh I don't know for sure about having four accounts but some one told me.

[fudnie]

Sorry, 123 current account, and having read the small print it is only 2 accounts per person, but the misses could get a couple too?

[robin]

The santander 123 account requires a 500 funding per month and cannot come from another santander account (that you control) - so you cannot shuffle money back and forth - you can withdraw 500 in cash, then pay it back in, but that is a pain in the backside.

Another vote for consulting BigD.

Remember that gold has very little intrinsic value, so any investment in gold is reliant on others valuing it (irrationally). The gold price has only "bottomed out" if you are looking at the chart in the wrong scale.

Take a look at the graph near the bottom of this article, for example:

http://www.bbc.co.uk/news/magazine-25255957

If you had to predict, based simply on the shape of the chart, where gold prices would be headed in 2020, you would guess $200/oz. That's probably not going to happen, BTW ...

Cheers,
Robin

[DJ]

I don't usually post on investment threads but this one is vague enough to avoid any conflicts etc.

The money we have is our life savings so we dont want any major risk and gold seems a fairly stable choice?

Listen to Shug and Point 'n' Squirt above - your last line above makes me nervous you haven't looked into this enough.

Firstly on gold - it is sometimes defined as its own asset class, or as an alternative investment, or a real asset lumped in with things like art, fine wines etc. It's unique but given the lack of diversification within the restricted structures around holding gold and its variants, it's not broad enough to be an asset class in my view so more volatile in pricing than traditional asset classes. Robin touches on it too re prices. Gold has ranged form about $200 to $2000 per ounce over the last 10 or so years - which is no time at all in terms of investment horizons. There is no way to tell it has 'bottomed out' and the reason (probably) it is falling is due to its traditional inverse relationship with interest rates. Now the world economy - very generally - is less pessimistic and there are signs of global recovery, investors are seeking better returns elsewhere on the expectation the next move in interest rates is upwards.

Speaking to a good IFA is the right move and with the new RDR legislation that will be via a fee now rather than off any commission from any subsequent product you may organise through them. First thing is they will ask you the questions like your age, aims, risk aversion, existing savings & capital and in what form, income or growth targets, tax management considerations etc. before considering what sort of area to invest. Diversification is key. Gold might be part of the answer, but if any IFA says put all your life savings there as it's safe and they agree the price has bottomed out, I'd find another IFA! The most obvious point to start is to max out any ISA allowance if you haven't done that already, but again best speak to an IFA to discuss the type of vehicle, its investment strategy and risk/return profile that will compliment any other investments you have.

DJ

PS - Note I am not an IFA nor in any way registered or regulated to provide investment advice - which the above isn't - just forum chat!