Safe Money

A

aid@n

Guest
Hi,

Sorry if this is in the wrong place, I'm new to this site and the investment forum seems the most suitable.

Supposing you came into the possession of a sum of money, E80000 for example, say through inheritance/insurance/sale of an asset etc... where would you invest it for the next few years until the economy becomes less turbulent? ...providing you were more concerned with ensuring the safety of your deposit/investment rather then looking for the most profitable return.

I ask this because I find myself in such a situation. Looking at the Irish banks and their term/savings accounts, they're not overly confidence inspiring. While the Irish government guarantee scheme is somewhat reassuring, from different articles and opinions I've been reading there's a considerable(if outside) chance that the government won't be able to live up to it and may itself go under/bankrupt. There's other things too, I've seen a fair few people talking about the possibility of hyperinflation stemming from the US in the medium term future, as well as other possibilities like catastrophic runs on the bank which apparently came within hours of happening in the UK and the US back in Sept. Anyway, not meaning to be all negative about it, but I've just been trying to think of somewhere relatively safe to invest in the medium term.

Was looking at Rabobank initially, while its interest rates are pretty bad they're always going on about their AAA credit rating and they're backed by the dutch government rather then the Irish. Does anyone know how safe they actually are and would the be insulated if the Irish banks went to the wall? If not is the any other banks operating withing Ireland that would be?

Looked into buying gold aswell, but its gone so expensive in the last while and may be inflated/overvalued? Still, some analysts I read are predicting further huge rises...

Also considered shares...in some bluechip companies maybe...does anyone know how share prices are affected during hyperinflation? Thinking about it, it would seem that the share value would keep abreast with the inflation and you wouldn't lose your investment?

Anybody have any thoughts on this?
Thanks.
 
Well I'm really really not an expert but I think deflation is more of an issue than inflation for the moment.

I don't think you are going to get a risk free investment at the moment....at least I can't think of one...but refer to my first sentence.

There is a risk attached to having your savings in a high interest irish account, but there is a significant reward also.

I'm thinking if the country does go bust....worse case scenario....we might get an IOU for the money...a la Argentina...who I think paid up eventually...but only in pesos.(tough if you saved in dollars)
 
I wouldn't put any trust in the credit agencies at the moment. Icelandic banks had AAA ratings shortly before they collapsed. Gold & Silver perhaps overbought in the short term but all the indicators to me look bullish on many precious metals in the coming year. Palladium & Platinum anyone?
 
Does anyone know if all investments under the government guarantee scheme is safe in BoI any advice on this would be grateful.
 
I too was going to ask this sort of question. I have around the same value (£80K) currently saved in ING - which was giving a great rate a year or so ago, but is now around 1%.

Anyone have an opinion on ICICI, or any of the smaller banks who are offering 4% ?

Also - looking in the What Investment magazine, it lists bet savings options, and some show that Interest is paid Monthly - and some Yearly ! Surely the Monthly ones must be best as the interest received woud itself get interest?

Am I being thick here ??

Phil