holding cash, gold or ? Shamateurnomics time.

[rootsnall]

Some people on here seem to be starting to panic about holding sterling cash !

I have a feeling it won't be such a bad position in the time frame of the next year or two as we still might end up with deflation despite the frantic panic efforts to create inflation. I think all assets will fall in price in the next year or two so cash is best for now ! Possibly ! Maybe ?

In terms of what currency to hold it in I think sterling has already devalued in a big way. There has been a flight to the 'safety' of the dollar but the US economy is in state of collapse and people might wake up to this fact !? The Euro economy is also in a dire state and there must be a chance that the Euro itself might collapse so I wouldn' be risking my cash there. The Swiss franc looks OK but the swiss banks have some nasty liabilities and could bring that down in a big way !? Anywhere else ?

As for Gold I have a sneaky feeling that one day people will wake up to the fact that is a not very useful heavy metal that is no longer linked to currencies and wonder what the hell they've been doing.

If you have to hold an asset I reckon oil is the go, it is certainly useful and is limited in it's supply and will become more so. The big oil Co shares are paying 7% dividends. The downside is oil ends up at $20 and we do have deflation. If we have hyper inflation it's going to go up in price.

Comments please.

[ace00]

I am building a balanced portfolio - shares, bonds, commodity, property.
I don't see a logical reason to buy gold but that doesn't mean it won't go up.
I have 4 currency accounts.

So I'm all set up. Shame I got no flipping money

[rootsnall]

I am building a balanced portfolio - shares, bonds, commodity, property.
I don't see a logical reason to buy gold but that doesn't mean it won't go up.
I have 4 currency accounts.

So I'm all set up. Shame I got no flipping money

That is why you are not worried !

[sasguru]

As for Gold I have a sneaky feeling that one day people will wake up to the fact that is a not very useful heavy metal that is no longer linked to currencies and wonder what the hell they've been doing.

.

History, while not being a fool-proof predictor, generally is a good guide to what is happening economically (as opposed to the subject of economics which is a fraud). That is because human nature doesn't change much.
And that's why some of us could identify classic bubbles like dot com and housing and predict the fall-out.
On that basis, I expect Gold to rise in value over the next 2 years. It has been a safe haven for thousands of years.
As to its intrinsic value, it's merely a RARE useless, shiny, heavy metal that is, nevertheless, highly prized by most societies in the world. That accounts for its value.

[Liability]

Ignore 99% of the doom on here. Majority is from people who are armchair economists who havent got a clue and get a kick out of spreading depressiong news. Kind of like say it to make others feel bad but yourself feel good.

[sasguru]

Ignore 99% of the doom on here. Majority is from people who are armchair economists who havent got a clue and get a kick out of spreading depressiong news. Kind of like say it to make others feel bad but yourself feel good.

Yes that's right. We should all ignore the overwhelming evidence that things are not quite right in the economic world and bury our heads in the sand

[M_B]

History also tells us that in 1933 Roosevelt confiscated all private holdings of gold to increase the governments gold assets. Investors lost 40% as a result.

[AlfredJPruffock]

Do not gather and heap up and store up for yourselves golden treasures on earth, where inflation moth taxes and rust and worm consume and destroy, and where thieves break through and steal.

But gather and heap up and store for yourselves treasures in heaven, where neither moth nor rust nor worm consume and destroy, and where thieves and governments do not break through and steal;


For where your treasure is, there will your heart be also.