Get all cash out of the bank

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Originally Posted by brummy John

the Clever Money Is Invested In The Toast Futures Market.

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Snigger

Well Theheathens has won the argument....... but lost the plot :D. All these graphs are reminding me of work rather than fell running.

And we aint even mentioned silver

Or The Loan Arranger...

On the Daily Show with John Stewart yesterday there was footage of George Dubya explaining this situation to mere mortals like myself: "turns out all these institutions have interlinks"(!) Well I'm glad we established that!

By the way, does anyone know what the price of green's doing at the moment? I'm thinking of selling my broach.

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Originally Posted by southernsoftie

By the way, does anyone know what the price of green's doing at the moment? I'm thinking of selling my broach.

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You have a broach the shape of a broccoli?

Sharia banking starts to look attractive!

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Originally Posted by daz h

And we aint even mentioned silver

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"Gold & General" ;)

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Originally Posted by TheHeathens

Are you serious? I'm guessing there's no point in asking you whether the glass is half-empty or half-full! Do you seriously think that we are heading into economic meltdown with complete stock-market collapse and multiple runs on banks?

Where exactly did I say that Graham Birch would supply the gold? I'm fully aware of gold's status in the market as a safe haven during an economic downturn, but investing in gold equities is as valid as gold ownership - when gold is in demand, so are shares for gold companies.

Believe it or not, this is not the first economic downturn ever and history shows the above to be correct. What I have said it's awful advice to put all of your money in gold or gold equities(true), just as it's awful advice to have all of your money in cash deposit accounts (and who needs more than £35,000 invested in deposit accounts?) unless you are extremely averse to risk.

Fact is, this economic downturn is not as bad as the doom and gloom merchants (step forward Mr Leigh) would have you believe. Financials have been in a 20 year bubble and have taken too much risk; this is just a readjustment of that risk that is unfortunately putting pressure on the markets. We may be heading for a recession, but we're not quite at depression stage yet!

I've mentioned twice that Diversification is Key and you've avoided it twice - very few of our clients have lost money in the last year even with the FTSE down by about 20% because we've diversified their portfolios. Even with the little bounce in gold prices last week, people who invested directly in gold in March (at the high point) would have lost 10% of their investment, on paper at least.

For the record, I do think that gold has some way to go before peaking - adjusting for inflation the peak in 1980 equates to about $2,200/oz, more than double the recent peak. There are just more ways to invest in it than doing so through direct investment.

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The glass can be neither half-full nor half-empty.

So I decide I want to invest in gold. I can buy gold straight at the price it's offered or I can invest in a fund. If I buy it straight from the dealer, the gold is in my possession.

If it's in a fund it's kept somewhere else.Now let me see: Since the gold is kept by someone else I'd have to pay storage charges. So there goes some of my gold in costs. I've also got to pay someone to manage the gold fund. There goes some more of my gold in management fees. Then there's security. It costs a lot to guard the gold. And what about insurance. You'd have to insure it if it was in someone Else's possession.

By the time you'd finished all your gold would be lost in paying for the operation of the fund.

Now I've never told people to put all their money in gold. I've just explained why gold is king, as part of a discussion on the economy. I don't tell them either that diversification is king, or necessarily good which you seem to imply. Diversification can lead to economic ruin as well, if you invest in the wrong things.

One last point I'm not the only one who thinks things are bad. You stated that 'we're not quite at depression stage yet.' Since we've only had one depression in the last century(that I can recall) you too believe things are bad, and are one of the doom and gloom merchants.

Witton, Daz H and Myself will welcome you to our club.

Have to say, if I was to have money to invest (snigger.....), didn't like the sound of Toast futures (mine would always land butter side down) and was going to choose my investment advisor from the FRA Forum (hysterical laughter) I'd be choosing TheHeathens rather than CL