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DoctorSolar

sold2rent inflation dilemma

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My partner and I sold our flat in edinburgh in may 2008 and have been renting ever since.

We have split our deposit in to the following:

 

87.5% - post office growth bond @ 7.05% fixed for 1 year

5% - silver eagle coins (bought from tulving.com and in storage at a friends house in usa)

5% gold held via bullionvault.com

2.5% - various gold oil stocks - pdl/goro/cgld/aqi/slw/pwe/uranium participation

 

I have just watched that video clip posted on an other thread:

 

http://uk.youtube.com/watch?v=1gPYgJZfRjQ

 

and it has scared the sh!t out of me.

 

My dilemma:

 

Do i withdraw some money from my bond early to get out of sterling?

If so what do I buy? Gold/Silver look good obvious choices to me.

 

Do folks here think the UK is poised for sky high inflation within the next 2 years?

If so would it be wise for us to buy a flat at the end of this year?

We both have reasonably secure jobs and roughly a 30% deposit.

 

Thanks for a great discussion board guys :)

 

PS: Just found out that I am due to be a dad for the first time :)

We are both really excited about it all

Want to make sure we are both as secure as possible before the wee one arrives

 

 

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...

87.5% - post office growth bond @ 7.05% fixed for 1 year

...

 

When is the bond due, the redemption date?

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and it has scared the sh!t out of me.

 

dont jump into anything

 

My dilemma:

 

Do i withdraw some money from my bond early to get out of sterling?

If so what do I buy? Gold/Silver look good obvious choices to me.

 

maybe and what about some base metals and oil/energy also

and a case could be made that gold stocks are undervalued compared to gold (carry more risk)

 

Do folks here think the UK is poised for sky high inflation within the next 2 years?

If so would it be wise for us to buy a flat at the end of this year?

We both have reasonably secure jobs and roughly a 30% deposit.

 

yes and maybe given current government policy

 

flat - i think the inflation needs to start feeding into wages first

 

then yes property and debt could be a good move - flat keeping pace with inflation and debt being reduced due to inflation

 

Thanks for a great discussion board guys :)

 

PS: Just found out that I am due to be a dad for the first time :)

We are both really excited about it all

Want to make sure we are both as secure as possible before the wee one arrives

 

well done, good luck and enjoy

 

edited to add i havent got a clue about investments so dont listen to anything i say

 

 

 

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The bond has a nice yield and you're UK based and you seem not want to move. However, while your bond makes 7% over one year, Sterling has lost something like 44% in value over the past year. At least in USD, your bond makes more like -37%. :o

 

According to this

http://www.moneyweek.com/investments/preci...gold-14391.aspx

hpukingold19302gi8.png

 

it is also far too early to buy houses. Remember, the cycle is one of 18 years (see my signature chart).

 

I guess I'm just a gold bug. Anyway, don't touch it if you're not comfortable with it (whatever 'it' is) and if you don't understand what you're doing. But if you're young, and can wait a bit, 25% gold doesn't seem much to me.

 

I am 100% in physical gold & silver.

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Congrats!

 

About the money thing. Don't panic but trust your instincts.

 

That is a big percentage of your worth is one currency. Why not put half of it into gold and think of gold as an alternative currency [not an investment]. It should protect your capital well when capital is being destroyed in many currencies at the moment.

 

Peace of mind is priceless.

 

[Disclosure: I am also 100% in gold and silver. :)]

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