Investing into Fiat

[Minimalist]

Yeap, as it says.... Any one for holding Kuwaiti Dinars since they are backed by Special Drawing Rights?

[sixgun]

i am for holding real money - Wonger may be going down hard but i will try to stick with the gold and silver. 

Special Drawing Rights is just more of the same pretend money.

[HelpingHands]

SDR are a basket of fiat.   

Only useful if one collapses.   Not much use if all of them do.

[Minimalist]

Governments around the world arent going to buy up US treasury bonds with their US Dollar, instead they will use the IMF SDR through the new electronic ledgers that are being rolled out. Bonds are being issued already, its a quick buck. If im wrong Robert Mugabe will be dug up and asked questions.

I have £5,000 sitting, theres a few options, BBM stock, KFC stock or the SDR 

[vand]

Everyone should keep at least 3 months of living expenses in CASH - or preferably at least 6 months in uncertain times such as the present.

Most gold/silver bugs stupidly fail to meet this bedrock of good personal finance because of their ideological opposition to fiat currencies.  Don't be one of them.  Holding emergency cash doesn't make you any less of a adherent to sound money, it just makes you a pragmatist. Cash Is King.

 

[Minimalist]

2 minutes ago, vand said:

Everyone should keep at least 3 months of living expenses in CASH - or preferably at least 6 months in uncertain times such as the present.

Most gold/silver bugs stupidly fail to meet this bedrock of good personal finance because of their ideological opposition to fiat currencies.  Don't be one of them.  Holding emergency cash doesn't make you any less of a adherent to sound money, it just makes you a pragmatist. Cash Is King.

 

Cash is debased though which causes risk - putting your hard earned paper into real money like gold and silver is key to safety no matter what period of history we are subjected to. 

[vand]

3 hours ago, Minimalist said:

Cash is debased though which causes risk - putting your hard earned paper into real money like gold and silver is key to safety no matter what period of history we are subjected to. 

You cannot eliminate risk; you can only change the form it takes.

Yes, cash will slowly lose purchasing power over time. that is why you do not put all your assets in cash. Just enough to see yourself through a potential crisis. The rest should be invested wisely, but even the wisest investments may take a dip at the time you most need to liquidate them - and gold and silver are certainly no exceptions here.  

 

 

[Minimalist]

18 minutes ago, vand said:

You cannot eliminate risk; you can only change the form it takes.

Yes, cash will slowly lose purchasing power over time. that is why you do not put all your assets in cash. Just enough to see yourself through a potential crisis. The rest should be invested wisely, but even the wisest investments may take a dip at the time you most need to liquidate them - and gold and silver are certainly no exceptions here.

Wrong.

I agree mostly with the context but the last of your post is wrong.

You are convinced that the paper price of Gold and Silver represents its value, that is wrong.

Gold and Silver is infallible to markets as its main property of status is money and its treated as such while it has never let down humanity. The illusion is that people believe we live under a sort of tranquil period when its far from the truth - instead the banking classes has used its arm of institutionalism (Council of Foreign relations for example) with its propaganda and its incremental organisations have corrupted the understanding of money and by insulting the intelligence of the people that gold and silver is "not money" and its just a "asset class" over the last 100 years. The real cash price for metals is unknown because its true value greatly exceeds the paper price. Theres actual documents of proof showing that all central banks are conspiring with each other to maintain the perceived paper price (which is heavily suppressed) and hoard it in greater proportions than the central bank makes the public believe. Theres a secret Gold treaty headed by the Forty Committee. Below is a link to highly sensitive material - click at your own risk.

Quote

http://www.deepblacklies.co.uk/feature_article_listing.htm

 

[vand]

3 hours ago, Minimalist said:

Wrong.

I agree mostly with the context but the last of your post is wrong.

You are convinced that the paper price of Gold and Silver represents its value, that is wrong.

Gold and Silver is infallible to markets as its main property of status is money and its treated as such while it has never let down humanity. The illusion is that people believe we live under a sort of tranquil period when its far from the truth - instead the banking classes has used its arm of institutionalism (Council of Foreign relations for example) with its propaganda and its incremental organisations have corrupted the understanding of money and by insulting the intelligence of the people that gold and silver is "not money" and its just a "asset class" over the last 100 years. The real cash price for metals is unknown because its true value greatly exceeds the paper price. Theres actual documents of proof showing that all central banks are conspiring with each other to maintain the perceived paper price (which is heavily suppressed) and hoard it in greater proportions than the central bank makes the public believe. Theres a secret Gold treaty headed by the Forty Committee. Below is a link to highly sensitive material - click at your own risk.

 

 

Don’t be too smart. We are not talking about the virtues of gold as a long term store of wealth here. The fact is that you cannot buy groceries or pay your car loan with silver and gold - you need local currency to do that, and the price of the metals can AND DO get sold off at times. If you need currency to meet your living costs and have none then you will become a forced seller of your assets. 

 

Precious metals are worth holding but they are not a magic bullet that excuses you from following good principles of personal finance.

 

Being pro-gold doesn’t mean you also have to be cash-stupid. Holding sufficient liquidity is the worth far, far more than the couple of percent it costs each year to inflation. 

 

 

[freefall]

I've got a fair amount of cash just now that I don't need and I cant find anywhere to invest that seems right. Its all in British pounds. I decide I wanted to speculate on some foreign currencies as a hedge against the pound tanking. Taking physical delivery of the currency from foreign exchange companies you lose when buying and even more when selling so I ruled that out. There's loads of online platforms for trading currencies but they have fees attached and are more suited to day trading etc.

From using GoldSilver.be to purchase silver and platinum I discovered their preferred method for transferring money to Europe - TransferWise. Its has low fees, is user friendly and I couldn't recommend it enough. They've now got a borderless account where you can hold more than 50 currencies (listed below) in one account. Its easy to get online, just upload some ID documents and pay £5 for a debit card to be delivered to you. The account itself is free with no monthly fee and you get the best possible (mid-market) rate. They make money when you convert currencies. The conversion fees are around 0.5% or less for widely traded and a little more for exotic currencies. The fee is taken every time you convert currency so its no use if you want to actively trade but for a buy and hold strategy its pretty reasonable.

Only downside is its not FSCS protected. But they're upfront in saying your money is held in a client account with Barclays (if you are a UK customer) and is totally separate from their business. If Barclays is in trouble you could lose your money but its a risk I'm willing to take.

So I decided to go ahead and by some "safe haven" currencies or countries that I perceive to be well run. I split the money equally between US dollars, Swiss francs, Norwegian krone, Singapore dollars and Japanese Yen. 

Any thoughts on the strategy or method? I don't really know much about FX but I thought I'd take a punt.

[Stu]

1 hour ago, freefall said:

I've got a fair amount of cash just now that I don't need and I cant find anywhere to invest that seems right. Its all in British pounds. I decide I wanted to speculate on some foreign currencies as a hedge against the pound tanking. Taking physical delivery of the currency from foreign exchange companies you lose when buying and even more when selling so I ruled that out. There's loads of online platforms for trading currencies but they have fees attached and are more suited to day trading etc.

From using GoldSilver.be to purchase silver and platinum I discovered their preferred method for transferring money to Europe - TransferWise. Its has low fees, is user friendly and I couldn't recommend it enough. They've now got a borderless account where you can hold more than 50 currencies (listed below) in one account. Its easy to get online, just upload some ID documents and pay £5 for a debit card to be delivered to you. The account itself is free with no monthly fee and you get the best possible (mid-market) rate. They make money when you convert currencies. The conversion fees are around 0.5% or less for widely traded and a little more for exotic currencies. The fee is taken every time you convert currency so its no use if you want to actively trade but for a buy and hold strategy its pretty reasonable.

Only downside is its not FSCS protected. But they're upfront in saying your money is held in a client account with Barclays (if you are a UK customer) and is totally separate from their business. If Barclays is in trouble you could lose your money but its a risk I'm willing to take.

So I decided to go ahead and by some "safe haven" currencies or countries that I perceive to be well run. I split the money equally between US dollars, Swiss francs, Norwegian krone, Singapore dollars and Japanese Yen. 

Any thoughts on the strategy or method? I don't really know much about FX but I thought I'd take a punt.

Looks interesting, thanks.  Personally I would be wary of holding yen, I would take on the Yuan, although it's not free floating PRC can place it anywhere, however they have the metal to back it when time comes. 

[JunkBond]

I looked into this a while back as I fancied holding some dollars but was put off by the lack of FSCS.