Where to put savings now?

Some external expert said on the radio today that the euro won't be let go under as China needs an alternative to the dollar. Sounds reasonable logic but is it!
 
serotoninsid said:
@kdoc: I'd be quite happy to place it here if it wasn't for the possibility of euro breakup - and the devaluation that would follow. Presumably, you feel this won't happen?
Click to expand...

serotninsid, Nobody can be quite sure, but I think it's unlikely. In any event, where are you going to put your money? The global situation is changing rapidly. It looks like our star is beginning to rise a little according to this article in today's Independent:

http://www.independent.ie/national-news/big-boost-for-ireland-amid-market-chaos-2841500.html
 
kdoc said:
serotninsid, Nobody can be quite sure, but I think it's unlikely. In any event, where are you going to put your money?
Click to expand...
I honestly don't know! I opened up a UB a/c in Newry many months ago. At the time, they told me that they couldn't open a euro account (something that I now know is untrue as other AAM'ers have successfully done this). So I just left that account lie - as i'm not going to go opening up a sterling account.
I was then following the thread started by folks looking to move funds to Germany. To that end, I recently got the forms through from DKB Bank - but again, I have not acted on them.

A lot of dithering on my part. This used to be such an easy decision before. I would go from 1 year fixed to 1 year fixed - and at the time of the switch, would just go to AAM key post on deposits, look at who was offering the best rate - and that was it....simples.
 
serotoninsid said:
If I could just add a further twist to this question...
Many people here have been advocating retaining deposits in euro in Germany. However, some are now suggesting that in the event of a euro break-up, the Germans would want to devalue so that they remain competitive (being that they are the worlds second largest exporter).
Click to expand...
The German central bank always retained a strong currency policy and it always looked at price inflation as its sole source for decisions on monetary policy. It will not suddenly turn into a monetary interventionist if the DM is reintroduced.

farmerette said:
gold rose four fold before the media gave it a seconds notice , gold has only entered the public consciousness very recently , the recent stock market bull run was a sham , backed by nothing except QE by the goverment , america is entering rescession again , money will enter defensive assetts like gold + europe will have no choice but to print thier way out of debt so that will inevitabley lead to a weaker euro which is redicolously over valued anyway , all signs suggest gold will at least hold its own over the next year at least , a sell off of 100 euro an ounce here or there is nothing to worry about , if it was where it is now in a years time , id still be happy
Click to expand...
I fully agree, the events of the last week and especially the US downgrade by S&P will give the Fed exactly what it needs to introduce QE3 and 4. The ECB has already embarked on qualitative easing by allowing junk bonds to be deposited as collateral, and the latest spout of solution for Greece is going to be funded through quantitate easing as well.

horusd said:
All of this is highly speculative. It's also wrong to say that the stock market run was solely caused by QE or that it must follow that the ECB will engage in QE or that the Euro is neccessarily overvalued.
Click to expand...
I disagree, as soon as QE1 ended equity and commodity prices started to decline and QE2 was introduced. This ended in June, and suddenly equity and commodity prices are plunging again. The problems that caused the financial crisis, i.e. too much debt, are still there so there is no reason why equities should have been rising other than monetary inflation.
All the extra debt that will be created in order to pay for the increase in the EFSF will be bought by banks and deposited with the ECB which will create new money, which is quantitative easing. Keep an eye on the ECBs monetary base figures over the next couple of months and you will see that after a few months of remaining stable this year, the figure will be rising again.

horusd said:
Gold investment is highly speculative, and not for the faint-hearted. A resolution of the current crisis would leave a lot of damage to the Gold price in it's wake. In short, gold should not be a sole option for any saavy and conservative investor, or any investor in my opinion.
Click to expand...
Gold is volatile, and volatility does not suit everyone, bu gold is not a speculative investment in the long run. The only way that the US and EU can solve the debt crisis is by defaulting of printing more money. Neither of which will have a negative impact on gold.
 
Does anyone know what will happen to our savings in the event of the euro being scrapped? I have worked my butt off all my life and have saved 100K which was supposed to help as a pension and to put kids through college and would really rather not loose it. Any help would be appreciated as nobody seems to know
 
saving in a euro collapse

Does anyone know what will happen to our savings in the event of the euro being scrapped? I have worked my butt off all my life and have saved 100K which was supposed to help as a pension and to put kids through college and would really rather not loose it. Any help would be appreciated as nobody seems to know
 
I think you have answered your own question, nobody seems to know : (
 
I was listening to Jill Kirby on Newstalk yesterday. It would be funny as long as she isn't right in her analysis. Invest in a safe currency, but no currency is safe. Invest in a safe bank, but no banks are safe. Talk to your family and work together to solve each other's financial problems.

The only thing she didn't mention (but implied) was to stock up on canned food, buy a shotgun and build a bunker in the backyard.
 
Pension and College expenses would be in whatever currency we would ned up with, euro, puntnua, flagrons, etc so would your 100k, problem solved.
 
what the worse that can happen we go back to the punt and its devalued by 25% so what life will go on and at least we will be in control of our own economic policies....plenty of irish and non irish banks offering good interests rates, might as well take advantage of that.
 
Moneyworrier, you will feel better if you do Something. If you imagine the Irish currency will be devalued to a third of what it is worth now, why not put a third out of the country, or into a foreign currency here. That would balance off any loss on the value of your remaining savings.
There is no right answer, but you will feel you have made provision, and sleep better.
Nobody can say what is going to happen, or which currencies are safe.

Nationwide International in Isle of Man have a euro tracker account, paying 2.35%. I know that's lower than interest here; you have to decide if lower interest is worth the greater feeling of security. Your deposit is well under the guarantee amount. They also have a sterling account, if you don't trust the euro, which pays higher interest. It would be slightly harder to open as you have to exchange currencies. There is a forex risk, but you may feel it's worth the gamble.
Permanent tsb have an Australian dollar savings account paying 5% on amounts over $50,000 with 7 days notice. The bank will of course make some money on the currency exchange, but you may think it's worth it.

You may decide after research that you should just leave your money where it is, but at least it is a reasoned decision, and your mind should be easier. We can only plan for what we can imagine; we can't predict.
 
I remember reading an article about going back to old currencies overnight... So for that reason I stick with good old Deutsche Mark...
 
You must log in or register to reply here.
Back
Top