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This is the Wealth Preservation Society...


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Do we have a topic here that kind of summarizes what people are doing to preserve wealth in times of printy-printy?

A topic for those lucky/unlucky enough to have significant savings in GBP.

The problem has always been what to put it into. Gold, crypto (which I don't fully understand), stocks, different currencies?

In terms of housing I'm hoping that the time to buy will approx a year from now as the economic fallout from this gets realized and some tightening on lendinging take hold.

I know there's detailed topics on this sub-forum about individual types of investment but it would be interesting here for folk to summarize what each of them are actually doing.

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7 minutes ago, JoeDavola said:

Do we have a topic here that kind of summarizes what people are doing to preserve wealth in times of printy-printy?

A topic for those lucky/unlucky enough to have significant savings in GBP.

The problem has always been what to put it into. Gold, crypto (which I don't fully understand), stocks, different currencies?

In terms of housing I'm hoping that the time to buy will approx a year from now as the economic fallout from this gets realized and some tightening on lendinging take hold.

I know there's detailed topics on this sub-forum about individual types of investment but it would be interesting here for folk to summarize what each of them are actually doing.

I am in a similar situation, Cash in the bank 

I do have about 15% also in Gold and Silver coins which I hold physically 

I am just so unsure about everything else, mind bank accounts can be frozen, stock trading prohibited etc.

I think I need to hold some cash physically too perhaps in GBP, Euro and USD 

One thing is certain what ever they do it will be for the "greater" good as an national emergency etc ........... 

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Shit loads of non perishables? 

I'm in a similar boat that most of my savings are in Gbp. If they somehow get inflated to zero then we will be really in the shit. 3 weeks food and water, stuff to barter with and being in good fighting fitness will be more important than gold or shares then... 

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2 minutes ago, JoeDavola said:

Any tips on the best place to get physical gold and silver?

I bought coins from the royal mint, they are exempt from CGT you can get gold bar too but I figured silver and gold coins might be better if it comes to needing them 

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1 minute ago, ad_ceng said:

I bought coins from the royal mint, they are exempt from CGT you can get gold bar too but I figured silver and gold coins might be better if it comes to needing them 

Thanks - might be a stupid question but how are you supposed to convert them back into ££££ (or whatever currency)? Where's the marketplace that you 'sell' them?

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46 minutes ago, JoeDavola said:

Thanks - might be a stupid question but how are you supposed to convert them back into ££££ (or whatever currency)? Where's the marketplace that you 'sell' them?

Not stupid at all,  you can always sell them back to the royal mint if you want. 

There are another gold dealers, I suspect if mine ever come out the safe it will be for barter 

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4 minutes ago, ad_ceng said:

Not stupid at all,  you can always sell them back to the royal mint if you want. 

There are another gold dealers, I suspect if mine ever come out the safe it will be for barter 

I'd be happy enough to put 5-10% into gold/silver with the idea that it might be 20 years before I turn it back into cash.

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I would recommend the Japanese yen. It is probably at a fair price now against the pound in terms of purchasing power parity, they got the lurgy very early and are now almost completely free of it. It was nearly 140 to the pound a few weeks ago. Nearly three decades now with zero inflation (as in prices not increasing at all, not the """zero inflation"""" we see in Britain). Super strong industrial base and consistently runs massive trade surpluses. Very low tax rates when compared to the West, could be increased. Colossal national debt but the BoJ owns enormous amounts of it now and will just write it off. Enormous amounts of savings. Should be fairly easy to set up a JPY denominated account in Britain, or just use a forex company.

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I've diversified out of cash. I've got a stocks and shares ISA and an innovative finance ISA with Funding Circle.

Neither of those, of course, are particularly safe either but probably safer than cash in the long term.

I also own property (no mortgage) which I do not expect to rise in value but it will hopefully hold its value in line with inflation.

I have about 2% in physical gold and silver. Really just as an emergency fund if we go full Argentina. I'd like to increase that but prices are very high at the moment cos every bugger is getting in on it.

I don't really understand Bitcoin and dont' particularly trust it either, as Rober  Kiyosaki says it's not much different to what the wizards on Wall Street get up to.

Other ways of preserving wealth include buying small businesses, becoming a tax exile (Malta and Portugal have quite good terms) and investing in items which retain value - art, wines etc.

On a more basic level, spend money on things that will retain or increase wealth or save money, esp in a SHTF scenario. Eg home brewing equipment, cooking equipment, tinned food, seeds, gardening equipment, tools, high performance clothing, weapons, medical equipment, musical instruments, books, maps etc.

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44 minutes ago, Popuplights said:

If Joe bought a house, he could dig a hole in the garden to bury his mega PM stash......

I was being somewhat ironic with the house suggestion, but you can at least live in it.

I think Joe won't be getting a garden in the NI inflation printy bubble. It'll have to be under the floorboards. 😂

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On 19/06/2020 at 12:20, JoeDavola said:

Do we have a topic here that kind of summarizes what people are doing to preserve wealth in times of printy-printy?

A topic for those lucky/unlucky enough to have significant savings in GBP.

The problem has always been what to put it into. Gold, crypto (which I don't fully understand), stocks, different currencies?

In terms of housing I'm hoping that the time to buy will approx a year from now as the economic fallout from this gets realized and some tightening on lendinging take hold.

I know there's detailed topics on this sub-forum about individual types of investment but it would be interesting here for folk to summarize what each of them are actually doing.

Probably wise to give the standard DYOR warning here. Taking financial advice from strangers (no matter how much you respect them) can seriously deplete your wealth. Remember guitarman from TOS.

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On 19/06/2020 at 13:20, JoeDavola said:

Do we have a topic here that kind of summarizes what people are doing to preserve wealth in times of printy-printy?

A topic for those lucky/unlucky enough to have significant savings in GBP.

The problem has always been what to put it into. Gold, crypto (which I don't fully understand), stocks, different currencies?

In terms of housing I'm hoping that the time to buy will approx a year from now as the economic fallout from this gets realized and some tightening on lendinging take hold.

I know there's detailed topics on this sub-forum about individual types of investment but it would be interesting here for folk to summarize what each of them are actually doing.

Joe, why do you want to buy a property, seriously?

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5 hours ago, A tremendous # on the lung said:

Just checked my area, house prices are absolutely mental. There is no way you can price houses in the current environment, solely in anticipation of future inflation. How can there even be a market? All I can think of, is foreign buyers into London / the South and that money moving outwards.

 

 

 

 

Where do you live? Have a look here at how much LHA rates have gone up in your area. That’s the floor. They’ll do everything to keep house prices high.

https://lha-direct.voa.gov.uk/SearchResults.aspx?LocalAuthorityId=23&LHACategory=999&Month=6&Year=2019&SearchPageParameters=true

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23 hours ago, Knickerless Turgid said:

Joe, why do you want to buy a property, seriously?

Cause what else am I gonna spend my money on? If (and that's a big if) I can find somewhere I like that isn't a total rip off.

Also the quality of rented housing is generally awful so if I lose my current place at some point it's bad news.

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14 hours ago, JoeDavola said:

Cause what else am I gonna spend my money on? If (and that's a big if) I can find somewhere I like that isn't a total rip off.

Also the quality of rented housing is generally awful so if I lose my current place at some point it's bad news.

Perfectly good reasons, Joe.

You aren't going to find a reasonably-priced property that you like anytime soon, possibly forever, you are awaiting a market correction which may never come. If you do find your ideal property at an acceptable price, from the experience of a good friend who followed a similar life trajectory to your own, you may find that perfect property becomes your perfect prison.

In summary (and thread-crossing), get out there and create some debauchery of your own!

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On 22/06/2020 at 11:10, Knickerless Turgid said:

Perfectly good reasons, Joe.

You aren't going to find a reasonably-priced property that you like anytime soon, possibly forever, you are awaiting a market correction which may never come. If you do find your ideal property at an acceptable price, from the experience of a good friend who followed a similar life trajectory to your own, you may find that perfect property becomes your perfect prison.

In summary (and thread-crossing), get out there and create some debauchery of your own!

Good points. I realised if I wanted anything close to financial independence I was going to have to completely re-invent my life. Otherwise I would just have remained a wage slave desperately trying to save a huge deposit for an overpriced slave box within commuting distance of the office.

The end result was I moved to a remote part of the country and started my own online business, and now own a cottage with no mortgage. It was a bit of an upheaval and there were some lonely times but I have made a couple of good friends in the village and now have a very decent lady friend as well who is fully on board with Dosbods views.

What I'm trying to say is don't put your life on hold waiting for a property crash as it's likely never going to happen, instead work out how you can work the system to your own advantage.

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Whilst wealth preservation has some relevance (assuming you have wealth to preserve) I don't think it's entirely healthy to become fanatical about preserving what you already have. The more wealth you have, the more effort it takes to ensure that it is preserved, and the more stress involved in worrying about putting it in the 'best' place (which changes over time).

Wealth preservation can change your attitude for the worse, make you into an overly cautious, anxious person who misses out on some aspects of real life in an attempt to preserve something that, if not actually used, has no real value.

Better by far to work on the self: on one's insecurities, limitations, boundaries, etc. Educate, learn to know yourself, use your intelligence to keep your skills and knowledge up to date and relevant to the changing world. That way you'll never be poor and never be held hostage by a pile of cash in a bank, pile of bricks in the shape of a house, pile of gold in a vault, etc.

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1 hour ago, Alex said:

Whilst wealth preservation has some relevance (assuming you have wealth to preserve) I don't think it's entirely healthy to become fanatical about preserving what you already have. The more wealth you have, the more effort it takes to ensure that it is preserved, and the more stress involved in worrying about putting it in the 'best' place (which changes over time).

Wealth preservation can change your attitude for the worse, make you into an overly cautious, anxious person who misses out on some aspects of real life in an attempt to preserve something that, if not actually used, has no real value.

Better by far to work on the self: on one's insecurities, limitations, boundaries, etc. Educate, learn to know yourself, use your intelligence to keep your skills and knowledge up to date and relevant to the changing world. That way you'll never be poor and never be held hostage by a pile of cash in a bank, pile of bricks in the shape of a house, pile of gold in a vault, etc.

Good points - it's important to remember that 'wealth' is not just pounds and pence. It's why I always avoid those financial videos which show pictures of sports cars, yachts etc because that's a poor person's idea of what wealth means; the real wealth lies in personal independence.

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Seriously @JoeDavola just buy somewhere.  Maybe give it a year for all the CV19 negative effects to ripple through to prices but then jump in.

It occupies far too much of your mental energy and is putting your life on hold; I recognise this from my own internal debate about retirement over the last few years.

Forget gold, foreign currencies and even stocks.

Buying somewhere will be the best thing that you ever do because it will give you peace of mind.

Once you've bought your house then pay off your mortgage and only then start worrying about gold, foreign currencies and even stocks. 

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