Trust the banks or hide the cash in the garden?

Well I think everyone is in agreement that we are in a deep crisis and no easy way out etc, but talk of putting money in biscuit tins etc..Well then we really are in agreement with Mr Myers and his Zimbabwe assesment and while I do enjoy his articles and style of journalism I rarely if ever take him at face value.

The potato famine is not an accurate yardtsick to measure this against, I mean come on. There you had colonial rule, overpopulation and overdependence on a staple foodstuff which failed. How is that even remotely connect to a credit crisis and recession?
 
I wasn't intending on making direct comparisons between the two events, but now that you mention it, we do have an over-dependence on:

Cheap credit
and
Foreign companies who have set up here.

Both are looking very shaky.
 
Yes very true leghorn point taken. But I guess we are diverging from the original post (trust the bank or take risk of keeping the cash yourself) into a discussion on the general economic outlook
 
With interest rates at zero and banks and governments internationally looking increasingly insolvent - cash may soon become trash partic if serious inflation takes off as warned off by Buffett.

Silver (poor man's gold) coins such as 90% silver bags ( US dollar quarters and half dollars that were 90% pure silver pre-1965) will likely become highly valued and silver coins will be better to use for daily transactions/ purchases as gold is too expensive (can be used to buy cheap businesses, property and or farmland).

Continue to believe that silver has the most sound fundamentals and will significantly outperform the precious metals and the base metals in the coming years.

Irish and international media rarely if ever covers silver.

The Street.com had an insightful (if a little flippant tv piece on this on Monday) -predicting silver to rise to over $35/oz in 2 years.

$35 Silver in Two Years
http://www.thestreet.com/video/10466919/35-silver-in-2-years.html
 
I dont think serious inflation is going to be a problem in Ireland anytime soon with unemployment heading towards half a million and stagnant demand. Deflation is more of a risk.
 
Deflation now of course but the long term threat is inflation.

Meltdown throughout EU and in Spain, Portugal, Greece, and particularly Eastern Europe will likely see the euro come under serious pressure and force some members to leave as David McWilliams is advocating Ireland does (insane idea I believe as would lead to inflationary meltdown as per Iceland).

Euro is highly unlikely to collapse but if euro falls sharply as seems very likely than we will likely have sharp inflation in essentials such as fuel and food and continuing asset deflation.

Gold and silver do well in both as was seen in the deflation of the 1930's and the stagflation of 1970's.
 
Hate to be negative on the Euro and believe in it and hate the Euro skeptic Tory UK press and believe Euro has protected us from an even worse meltdown.

But important we do not put our heads in the sand re the risk facing the Eurozone and indeed the Euro:

Euro worries persist as ECB meets

LONDON (MarketWatch) -- It's the question that won't die.

Could the euro, the crowning achievement of a five-decade process of European political and economic integration, break apart in the face of the worst global economic downturn since the Great Depression?

http://www.marketwatch.com/news/story/ecb-spotlight-amid-persistent-euro/story.aspx?guid=%7B82FBE2C7-9C9A-4865-B7B3-1EE05BED43C2%7D&dist=google
 
Didn't Milton Friedman predict that the Euro wouldn't survive it's first severe crisis? As for the price of silver going up. Nobody really knows. I've heard it might even reach $500!
 
Did not know Friedman predicted that re the euro. He would be a bit too much of a champion of deregulated Casino Wall Street capitalism and of today’s fiat dollar international monetary system for my liking.


Is interesting that he viewed silver as even more of a monetary metal than gold - Friedman pointed out that “The major monetary metal in history is silver, not gold.”

Some analysts believe silver might even reach parity with gold - http://news.silverseek.com/GoldIsMoney/1235607107.php and http://news.silverseek.com/TedButler/1235407708.php ) .


Most analysts accept that there are some 4.5 to 5 billion ounces of above ground refined gold.

Estimates on above-ground silver, in refined, deliverable form, have ranged from 300 million ounces to 1 billion ounces to a high of about 4 billion ounces.

Thus there may be roughly the same amount of above ground refined silver as there is gold (and possibly much less silver) and thus the current gold/silver ratio of 70:1 ($924/oz divide by $13/oz) is an anomaly that will be rectified in the coming years when it reverts to its historical ratio of 15:1 or less.

Silver remains a good investment and an important diversification.

Most importantly, owning silver today is about financial insurance and wealth preservation.
 
and as far as i am aware the gold silver hisorical ratio is 50 to 1
that is a long way from 15 -1, just in the interest of balance
 
Balance !?

In the interests of accuracy - it is an accepted fact that the gold:silver ratio since 600BC throughout history is 15:1 (until the late 19th century when it began to rise but was 15:1 as recently as 1980) and that is because geologically there are 15 parts of silver to every one part of gold in the earths crust.

sanders030703d.gif



Further interesting reading on this here:
http://www.gold-eagle.com/editorials_03/sanders030703.html
http://www.321gold.com/editorials/laborde/laborde031808.html
[broken link removed]
 
Do you have some vested interested in the Silver business (george.shaw)??
 
sure do bbop - trying to corner the silver market as the Hunt Brothers did in 1979.
;-)
genuinely and sincerely believe that silver will rise well above $100/oz (from $13.50/oz today) in the coming years and diversifying accordingly.

Saw your post "Re: The Cheapest Irish Stockbroker: "I will probably go with Campbell O Connor"

do u have an interest in the stock business or with Campbell O Connor (bbop)??

;-)
 
That was a long time ago!

And in the end I went with Sharewatch and I find them very good :)

And no I dont have a vested interest in them!
 
This article is very apposite to this thread:

THE CITY INTERVIEW: Time to bury gold coins in the garden? Daily Mail
http://www.dailymail.co.uk/money/article-1163041/THE-CITY-INTERVIEW-Time-bury-gold-coins-garden.html

Warming to his theme, Winterflood regales me with tales of hoarding food in the attic and burying krugerrands - solid gold coins - in his garden, so fearful was he that Britain's financial centre was about to implode.

So it is chilling when Winterflood, chairman of the City dealing firm that bears his name, declares the current financial crisis the worst he has witnessed.

'We have never seen the like of it before,' says the 72-year-old, who has spent more than half a century working in the Square Mile.
 
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