should we all start buying pounds, dollars, gold?

ruxpin82

This Euro of ours, are its days numbered?
Lets say someone, a pensioner, had 500,000 euro in the bank, that they relied on the interest to give them a living.
In light of what some commentators are saying about the future of the euro, what would happen to this 500,000euro? Is it possible that its value could be eroded away to nothing if the ''euro fails'' (what does that term mean exactly?).

If you had that amount of savings that you relied on entirely for the rest of your life, would you be wise to buy gold, silver, dollars or pounds now, while the euro still has some value, live frugally for a year or two until things pan out a little.
I'M NOT ASKING FOR FINANCIAL ADVICE, JUST FOR OPINIONS,
people talk of the euro failing, im just trying to quantify what that means to real people.
Thanks

lucianot

This is what argentineans and other southamericans have been doing for the last 60 years. The problem is there is never a trust in the local currency and the dollar dictates the mood of the local economy. People save money at home and buy dollars when the are rumours of collapse, crisis, alien invasion, anything out of the normal, etc, etc.
Is not the best thing to do, get started in this behavior. I would hate to see i happening here in Ireland.

Sticky_Fingers

lucianot wrote: »

This is what argentineans and other southamericans have been doing for the last 60 years. The problem is there is never a trust in the local currency and the dollar dictates the mood of the local economy. People save money at home and buy dollars when the are rumours of collapse, crisis, alien invasion, anything out of the normal, etc, etc.
Is not the best thing to do, get started in this behavior. I would hate to see i happening here in Ireland.

Any Argentinean who did this around the turn of the millennium would have been dead on the money considering the chaos that swept their nation following the collapse of their currency.

lucianot

Not really. Why? If you had 5000 U$S in cash and 5000 Argentine pesos equivalent by parity to 5000U$S in the bank before the default, then after you would end up having the same 5000 U$S in cash and 5000 devaluated pesos in the bank that you could not withdraw for a long time.

That's why people keeps the dollars under the mattress, they are always worth something and will not devaluate (sort of).

Bob_Latchford

Buying gold itself must be a risk now its at these highs. If your using it as income you would be at mercy of market each year you came to cash in a chunk.

Fat_Fingers

I heard of businessmen taking a week off , flying to Switzerland to open a bank account there.

lucianot

Fat_Fingers wrote: »

I heard of businessmen taking a week off , flying to Switzerland to open a bank account there.

Yes, rats escape first.

Sticky_Fingers

lucianot wrote: »

Not really. Why? If you had 5000 U$S in cash and 5000 Argentine pesos equivalent by parity to 5000U$S in the bank before the default, then after you would end up having the same 5000 U$S in cash and 5000 devaluated pesos in the bank that you could not withdraw for a long time.

That's why people keeps the dollars under the mattress, they are always worth something and will not devaluate (sort of).

Not sure if you are agreeing with me of not. To clarify, I would move my money out of Irish banks and transfer it into an offshore bank account held in a different currency while keeping some Euros at home which would be spent on things that will be used/consumed or keep their value no matter what. Like the South Americans you mentioned in your previous post I have little confidence in any of the European leaders to see us through and would much rather hedge my bets. If I'm wrong happy days, I've lost very little but if I'm right then I would have saved more of my wealth then I would have otherwise.

People in the media and on boards bitch and moan about people removing their saving from the Irish banks saying that it will help precipitate their collapse. I don't really care because if the worst comes to the worst these people won't be around to help me out, you have to look out for yourself in these circumstances and not wholly rely on the gubberment to save you when it is obvious they haven't got 2 pennies to rub together.

lucianot

Yes, sorry, I didn't understand what you wrote but after a third read I got it.
We agree then.

Yitzhak Rabin

Would your money be protected if it was invested in foreign shares? Even if its not directly invested in foreign companies, but invested in an Irish investment fund that is focussed on the Asian market?

wylo

If I was considerably wealthy I would be buying gold now and keeping it in a safe, firstly the talk of default seems to be growing, secondly even if we dont default I genuinely reckon its only a matter of time before the Euro collapses. The Gold market is far less volatile than any other one.

Atilathehun

Buy gold - no way. It's probably becoming a bubble, if not already there.
Foreign currencies, may fluctuate up or down, and cost money to buy and sell by way of bank fees. Bank fees are only going to go one way . UP!

What can you buy, which is functional, will always be in demand, not perishable? If you had secure storage capability, I would suggest COAL.

Buy in bulk. Store. Sell over time.

Cookie_Monster

buy uranium, demand is only going one way and supply is very limited

lucianot

I believe the euro has a couple more years to live until France and Germany finds an effective and painless way to kill it.
Also you can't have money in your house, when there is crisis society becomes more violent and individuals more selfish, and it would be very dangerous.

Slozer

10% in gold and hope it doesnt rise.

Stocks in Uranium producing companies.

digme

80% 20% gold
takes 50 ounces of silver to buy 1 ounce of gold, soon it will take 15 to buy 1 ounce of gold, hence you get free ounces of gold.
Just looking at our paper currencies, losing more than 10% per year versus gold (for last 10 years), this is now alarming for majority of people worldwide.

Bob_Latchford

what about Irish 10yr bonds? good %age being offered.

ruxpin82

OP back again,

thanks for the replies, i raised this question because i reckon there must be thousands of people out ther with considerable sums of money in deposit accounts, some shrewd builders, farmers who benefitted from selling sites, some public servants on ridicuolsly high wages, auctioneers etc, even anyone with modest savings.
Are those people out there not considering that the euro might be devalued soo much that their savings will be eroded away to pittance, or am i just being wildly presumptous?.
Has the price of gold not risen considerably in the last two years?

I agree its every man for himself right now, and im just wondering will there be a realisation/expectation of the Euro's demise, then causing rapid decline in value, panic to change euros to whatever is most tangible. will it be a case of the early bird....?

digme

Just looking at our paper currencies, losing more than 10% per year versus gold (for last 10 years), this is now alarming for majority of people worldwide.

enough said. and now they're printing like a motherfcker,so use your head.

Slozer

ruxpin82 wrote: »

OP back again,

thanks for the replies, i raised this question because i reckon there must be thousands of people out ther with considerable sums of money in deposit accounts, some shrewd builders, farmers who benefitted from selling sites, some public servants on ridicuolsly high wages, auctioneers etc, even anyone with modest savings.
Are those people out there not considering that the euro might be devalued soo much that their savings will be eroded away to pittance, or am i just being wildly presumptous?.
Has the price of gold not risen considerably in the last two years?

I agree its every man for himself right now, and im just wondering will there be a realisation/expectation of the Euro's demise, then causing rapid decline in value, panic to change euros to whatever is most tangible. will it be a case of the early bird....?

Paper currency is always being devalued either through inflation or money printing so unless your money is getting a better interest rate than the current rate of inflation your money is being devalued. I would suggest you take a look at Austrian economics, everything they say makes sense unlike the so call economists advising our government.