Term Deposit or Unallocated

Discussion in 'General Precious Metals Discussion' started by JulieW, Nov 27, 2020.

  1. JulieW

    JulieW Well-Known Member Silver Stacker

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    Opinions and thoughts please.

    I'm looking to park some funds for a while. I'm thinking options are Term Deposit with the bank or sitting it in Unallocated metal.

    Interest rates are going nowhere, inflation is looming.

    Thoughts?
     
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  2. Silverling

    Silverling Well-Known Member Silver Stacker

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    Hi Julie, my true and honest feeling at this time is that I would go for the term deposit.

    My reason for saying this it that at least your capital will get the 250K Government bank guarantee on it plus a little bit of interest. I know a lot of people say the guarantee is not worth the governments word but I don't believe this. We are not talking about Estate Mortgage back in the 80's. We are talking about a current government guarantee. It is either that, which is not that rewarding or gambling with the price of spot and third parties with no government guarantees. Look at what's happened just recently, silver down 20% from its highs, gold down 10% and lets not mention bitcoin. Each to his own and I could be wrong but that is what I would choose.
     
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  3. JulieW

    JulieW Well-Known Member Silver Stacker

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    Appreciate your thoughts thanks Silverling.
     
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  4. leo25

    leo25 Well-Known Member Silver Stacker

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    I don’t see the logic with putting money into a term deposit these days. Getting a measly half a percent is not worth having your money locked away for a month. Unless there is a safe bank that doesn’t have a 1 month wait time for early withdrawal?

    you’re better off keeping it in a normal account and having instant access to it for things you can’t think of.

    With that out the way I would split it 50/50.
     
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  5. Silverling

    Silverling Well-Known Member Silver Stacker

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  6. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    If you can’t decide, split it in 2
     
  7. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    First dont put money in term deposit, it is literaly a waste, when the few banks mentioned Silverling literally pays more on call.

    Second question is how long is "awhile"
    Thirdly how important is the money in the scheme of things
    Finally how active will you be in managing the money.

    If the money has to be used on a certain date (within the year) like settling an off the plan apartment just put it in a "higher" interest saving account.

    Of course no one wants to lose money but if time is closer to two years or more and risking few percentages off the total sum isnt critical, consider putting 95% in "higher" interest rate and 5% in unallocated.
    • If gold goes up 20% or more than than you earned 2% or more on the total (1% from saving accont)
    • If gold goes down 20% than you lost about 1% (on the total)
    The more leeway you have consider 90% saving / 10% gold.
     
    Last edited: Nov 27, 2020
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  8. Silverling

    Silverling Well-Known Member Silver Stacker

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    Nah, I was just responding to Julie's OP which specifically asked about term deposits. I do the online high interest (not so high really) accounts myself.:D
     
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  9. leo25

    leo25 Well-Known Member Silver Stacker

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    Ignore my (now deleted) last post, I had a brain fart. It’s too hot. :)
     
  10. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    What’s wrong with 50/50?
     
  11. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Without knowing the time frame, what the money is for and how critical the money is, it is hard to advice 50/50.

    Gold could be 10 to 50% higher but it could also realistically be 10 to 50% lower too on X date.
     
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  12. 66rounds

    66rounds Well-Known Member Silver Stacker

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    If it's literal savings with no planned use, it's a no brainer to park it in metals.
    If you've got plans for the money, then your timeframe will dictate the utility of term deposits etc
     
  13. JulieW

    JulieW Well-Known Member Silver Stacker

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    Thanks everyone. Great advice.

    No hurry to retrieve the dollars but IF it's needed for an emergency or so, then I'd want it quick smart. So it sounds like 50 / 50 sounds like an option with metals and at call.

    A little interest research pending I'd think.

    Cheers.
     
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