Where to put my money?

GarIT

I've been looking around and couldn't find any solid info so hopefully someone can help me, I've a little over €5,000 in savings and I'm wondering with all the trouble with the euro what should I be doing with it. For now its sitting in a current account. I've saved the money for college in September and I was thinking I should keep around €1000 accessable if I needed anything for now. Are prize bonds safe if the euro goes? I'll need to take the majority of it out in around 9 months from now so I was thinking I should put €4k into prize bonds and keep the rest in the current account. I can't afford to risk loosing the money no matter how little the risk is. Any better ideas?

justforgroups

GarIT wrote: »

I've been looking around and couldn't find any solid info so hopefully someone can help me, I've a little over €5,000 in savings and I'm wondering with all the trouble with the euro what should I be doing with it. For now its sitting in a current account. I've saved the money for college in September and I was thinking I should keep around €1000 accessable if I needed anything for now. Are prize bonds safe if the euro goes? I'll need to take the majority of it out in around 9 months from now so I was thinking I should put €4k into prize bonds and keep the rest in the current account. I can't afford to risk loosing the money no matter how little the risk is. Any better ideas?

What do you mean by losing it? All deposits up to €100k are covered. If we move to another currency (which isn't going to happen by the way) then at worst your €5k will now be €IR5k.

Please ignore all the scaremongering going on. The Euro is here to stay.

GarIT

justforgroups wrote: »

What do you mean by losing it? All deposits up to €100k are covered. If we move to another currency (which isn't going to happen by the way) then at worst your €5k will now be €IR5k.

Please ignore all the scaremongering going on. The Euro is here to stay.

I meant that I can't invest in something risky or anything like that.
I suppose prize bonds are the way to go because I won't make anything in intrest over 9 months.

GarIT

If we did move away from the euro what would happen to a prize bond? Would it retain its value in the new curency?

another world

GarIT wrote: »

If we did move away from the euro what would happen to a prize bond? Would it retain its value in the new curency?

The Prize Bond would be translated to the new currency as it is in euro and based in Ireland. Basically, it would be treated the same as money in an Irish bank account i.e. converted to the new currency at whatever rate the government decide on.

mr.mickels

Look at Swedish currency, gold, silver and even the US dollar in the short term, as safer options than the euro.

bah1011

Keep the money in your bank account.

If you need the money in 9 months there is no guarantee gold or silver are a safe option.

What is to say the value of them wont fall dramatically like gold did in September when it fell almost $200. And if you get unlucky enough to need your money at that time you will have no choice but to realise your loss.

The Swiss Central Bank have said they would intervene if there was too much of an appreciation in the Swiss Franc so really your looking at a very limited upside and a major downside if the markets get spooked.

At least if the euro falls in value you are still paying in euro's so it doesn't matter unless college is in a non euro country.

FernandoTorres

Get it into an instant access savings account. It's earning nothing in a current acc

mr.mickels

Gold has risen from $252 in 2001 to $1,745 today and silver from 401c to 3262.1c today? Most advisers I have spoken to expect those increases to continue in the longterm. Anyhow it is surely worth your research. I have yet to meet an adviser who has said holding Euros is a good option.
If the euro falls in value everything purchased in other currencies will be more expensive, such as foods and oil, when oil goes up everything goes up, oil is used to transport everything.
Nobody other than the elite bankers knows for sure what will happen the euro, but most predictions are bleak.

Tech3

Gold is over priced now IMO

dRNk SAnTA

mr.mickels wrote: »

Gold has risen from $252 in 2001 to $1,745 today and silver from 401c to 3262.1c today? Most advisers I have spoken to expect those increases to continue in the longterm.

Famous last words? You have just spelled out the ridiculous boom in precious metals. When confidence in the Euro/Dollar starts returning, the precious metals will fall dramatically in price and you are in danger of realising a big loss just at the time you'll want to convert it back to Euro.

The safer option is to diversify across less glamorous, more steady commodities. You should be looking to protect your wealth in the event of currency collapse or inflation, don't go chasing big margins.

bah1011

mr.mickels wrote: »

Gold has risen from $252 in 2001 to $1,745 today and silver from 401c to 3262.1c today? Most advisers I have spoken to expect those increases to continue in the longterm. Anyhow it is surely worth your research. I have yet to meet an adviser who has said holding Euros is a good option.
If the euro falls in value everything purchased in other currencies will be more expensive, such as foods and oil, when oil goes up everything goes up, oil is used to transport everything.
Nobody other than the elite bankers knows for sure what will happen the euro, but most predictions are bleak.

In the long term!!
If he needs the money in 9 months there is no guarantee that the price will be right then. I'm presuming he needs the money to pay for course fees. These will not be affected by the price of oil as only a change in government regualtion will raise this price.

Also its past performance on its own is a never a reason to buy.

GarIT

bah1011 wrote: »

In the long term!!
If he needs the money in 9 months there is no guarantee that the price will be right then. I'm presuming he needs the money to pay for course fees. These will not be affected by the price of oil as only a change in government regualtion will raise this price.

Also its past performance on its own is a never a reason to buy.

Yeah, fees, accom, books and that sort of thing, If I loose the money I can't go to college thats why I was worried about euros becoming worthless.

justforgroups

GarIT wrote: »

Yeah, fees, accom, books and that sort of thing, If I loose the money I can't go to college thats why I was worried about euros becoming worthless.

Sseriously!? Worthless!?
Well today confidence is back and the Euro (as I've pointed out many many times) is here to stay!

preddy

Polish Zlotys worth purchasing?

bbam

justforgroups wrote: »

.then at worst your €5k will now be €IR5k.

Indeed..
But what if the €IR5K is only worth half the sterling (an example for comparison) that the current €5K is worth?? Then you've lost 50% of your worth..

krd

mr.mickels wrote: »

Gold has risen from $252 in 2001 to $1,745 today and silver from 401c to 3262.1c today?
Most advisers I have spoken to expect those increases to continue in the longterm.

Would these "most advisers" by any chance be holding, or selling gold.

A bit like all the people who used to talk up the Irish property market...."Get on the ladder before it's too late.....Why buy one house, you'd be fool not to buy two"





If you look at the historic price of gold. It's had price bubbles before. The current price is at some point going to collapse. And when it crashes, it will crash hard and fast. If you bought gold ten years ago, and you sell it right now, you've made a huge profit. Anyone buying gold now is taking a huge risk and it's unlikely there is in any great profit to be made.

See the graph. If you bought gold at it's peak in 79 (I think that could be 80), and held it. You would be waiting until 2008 to break even. If you would have put your money in a low interest bank account in 1980, you could have quadrupled your money. Breaking even after 30 years, means you've had to pay an opportunity cost - you haven't even broken even you've lost three quarters of the value of your investment - gold prices would need to more than double what they are now for you to make back your losses.

Gold is for suckers.

It think what triggered the spike in the 80s was oil sheiks buying up as much gold as they could. I think this spike has been driven by internet cranks.

Anyhow it is surely worth your research. I have yet to meet an adviser who has said holding Euros is a good option.
If the euro falls in value everything purchased in other currencies will be more expensive, such as foods and oil, when oil goes up everything goes up, oil is used to transport everything.

Some predictions are saying the Eurozone is going to try to devalue it's way out of debt - that it's going to fall against the dollar over the next few years. That's complete speculation. The US may decide to devalue to make Chinese imports look less attractive. Anything could happen.

Nobody other than the elite bankers knows for sure what will happen the euro, but most predictions are bleak.

"Elite" bankers know no more than anyone else. If "elite" bankers were so clever half the banks in the developing world wouldn't be on life support.

hercolis

The euro is not going anywhere and if it does deflates it wouldn't make any difference to you as you are paying for everything euros.

If you want a risk free investment the best thing for you would be to open up a savings account and keep the money in there for 9 months, you'll earn a very slight interest on it rather then it just being in your current account and being tempted to send it.

I would stay away from gold and its trading at its all time high and the gold bubble could pop anytime, if that was to happen it would leave you in an awful state after 9 moths.

I am in the same shoe, I have 4k that i don't need till the summer so thats in around 6 months. Its currently in savings account at the moment and the interest earned on it is pretty poor. I am actively looking around to invest it in some stock option and willing to take to risk. I've been following a couple of stocks closely over the past few weeks and about to start a book that's been recommended by many called 'One Up On Wall Street : How To Use What You Already Know To Make Money In The Market by Peter Lynch'

hmmm

Prize bonds are essentially government debt aren't they? I never understood this thing of buying prize bonds as "protection", I always thought they were a very risky way for individuals to protect their capital.

SyntonFenix

hercolis wrote: »

The euro is not going anywhere and if it does deflates it wouldn't make any difference to you as you are paying for everything euros.

The countries not being able to pay off their debt, ECB not turning into a US Fed like facility, no economic growth and political differences will end the Euro in 2012, at this rate.

Of course the muddle through method will die a death if the financial markets have anything to do with it. Another muddle through is currently underway for those who haven't noticed.

How come some people still think that all this Euro business won't end in disaster?

hmmm

SyntonFenix wrote: »

How come some people still think that all this Euro business won't end in disaster?

Because it is nowhere near disaster at the moment and because there is still a box of tricks available for use if disaster is near.

mr.mickels

krd wrote: »

"Elite" bankers know no more than anyone else.

I couldn't agree with that. The elite bankers are phenomonally wealthy, and are getting wealthier all the time. Goldman Sachs are doing better now than before the crash. And in the 1930's depression the elite bankers made a giant fortune buying up the smaller bankers for low prices, closing down their opposition in the process. The elite bankers control the fall and rise of the markets, so its naive to imagine they know no more than anyone else, they know alot more than the rest.

mr.mickels

hmmm wrote: »

Because it is nowhere near disaster at the moment and because there is still a box of tricks available for use if disaster is near.

What box of tricks? Most economists I have heard have said the dollar, euro and british pound are very close to disaster, as they are all in huge debts.

SyntonFenix

Exactly, what box of tricks? Politicians are not willing to use it, whatever it is. Financial markets are going to crucify the EU. There's so many variables regarding EU countries and their needs that there'll be another summit in the new year. Probably to bully more countries. Then there's defaults, write downs, haircuts etc.

What's going to happen if there's referendums throughout the EU next year?

Soulja boy

mr.mickels wrote: »

What box of tricks? Most economists I have heard have said the dollar, euro and british pound are very close to disaster, as they are all in huge debts.

The Dollar has been in a sustainable state of potential disaster (I feel sick just typing that) for a very long time, even before November 2008 it had 9 trillion in national debt.
It's a very dangerous game but if they can play it for such a long time it shows there isn't an imminent sign of the euro or pound collapsing. We could kick this can down the road for a long time yet.

An Ri rua

Tech3 wrote: »

Gold is over priced now IMO

No, not a chance. Overpriced short-term in the sense that its price WILL keep going down as EURO uncertainty continues. Purely because funds are transferring to the dollar. But should the Euro collapse, that will shake the dollar and Fed to their foundations and restore the inexorable rise of gold. I recommend reading and re-reading of www.uncommonwisdomdaily.com by @larryEdelson https://twitter.com/#!/LarryEdelson and particularly watch these key figures as to turning points / thresholds for gold. Larry is a goldbug supreme and not afraid to call it either way. I have made money consistently on gold rises and drops since 2009. I use Bullionvault. Incidentally, I cashed out about 3 weeks ago, due to Larry's technical insights.

http://www.uncommonwisdomdaily.com/lots-of-money-to-be-made-in-the-dow-gold-silver-the-dollar-and-oil-13291

http://www.uncommonwisdomdaily.com/important-update-on-gold-and-silver-13437

Larry has his critics but his advice is honest and earnest.

OfflerCrocGod

An Ri rua wrote: »

But should the Euro collapse, that will shake the dollar and Fed to their foundations and restore the inexorable rise of gold.

Gold along with all other assets would be liquidated and funds would be put in US Treasuries flooring rates - most heavily on the short end - we would probably be in a liquidity trap.

If you are An Ri rua with your small hoard of savings you may buy gold but if you're the Qatar SWF there is no way in a month of Sundays that you'll do anything other then liquidate everything in sight and put it in the world's premier safe haven - negative yields wouldn't matter you'd still buy UST. Nothing else would be safe.

justforgroups

bbam wrote: »

Indeed..
But what if the €IR5K is only worth half the sterling (an example for comparison) that the current €5K is worth?? Then you've lost 50% of your worth..

Not unless you're thinking of moving to the UK. Then you haven't lost a thing. And the guy is in college so it doesn't really matter what is happening to the currency really now, does it!?:cool: