How is holding silver better than holding cash in the bank?

[TheBullionBoss]

my bank pays 6.00% plus any Australian bank account under $1000000 is insured by the government in case the banks default.

 

[Photonaware]

my bank pays 6.00% plus any Australian bank account under $1000000 is insured by the government in case the banks default.

Is this for real ??
European banks are paying nothing, 1% or less, and a few sometimes up to 3% but with all sorts of strings attached.
You guys down under are missing a trick here.
Get the Europeans to deposit their dwindling billions into Australian banks.

Only concern is I gather your exchange rate has followed the Swiss route and for us foreigners we get screwed now.
I need to do some homework.

 

[jpanggy]

my bank pays 6.00% plus any Australian bank account under $1000000 is insured by the government in case the banks default.

Is this for real ??
European banks are paying nothing, 1% or less, and a few sometimes up to 3% but with all sorts of strings attached.
You guys down under are missing a trick here.
Get the Europeans to deposit their dwindling billions into Australian banks.

Only concern is I gather your exchange rate has followed the Swiss route and for us foreigners we get screwed now.
I need to do some homework.

This is for real

HSBC serious saver 6.49%
uBank (subsidiary of national australia bank ) 6.51%

our exchange rate has not followed the swiss route. We are net importer, so it will take a much higher rate before govt steps in to fix rate.

 

[ReturnToZero]

my bank pays 6.00% plus any Australian bank account under $1000000 is insured by the government in case the banks default.

Is this for real ??
European banks are paying nothing, 1% or less, and a few sometimes up to 3% but with all sorts of strings attached.
You guys down under are missing a trick here.
Get the Europeans to deposit their dwindling billions into Australian banks.

Only concern is I gather your exchange rate has followed the Swiss route and for us foreigners we get screwed now.
I need to do some homework.

https://www.ubank.com.au/

6.51% if you deposit 200 per month up to 200k, guaranteed up to 250k by the aus govt. 6.01% without the bonus.

 

[ReturnToZero]

We get 6.51% in Australia...

What about inflation and tax = 00.1

JUNG

At least it's not -5% like everywhere else

 

[lamp]

Having said all of that my opinion is that it's still worth making a partial investment now if you're not allready in, although I do question the "all in" approach as being highly risky.

I agree with this statement, I think diversification is important right now. I got some silver/gold bullion, I have quite a few shares of what i call defensive stocks (Newcrest, Telstra, Wesfarmers). I also have some more speculative stocks(recently put quite a fair amount into Bluescope when it sunk to 70c, also got abit of Cochlear stocks after there recent collapse) i see these stocks as having quite good potential to swing back. I also have some small cap mining stocks that are abit of fun to hold.

I also like to hold cash in the bank because 6.5% is not all that bad. I said this is previous posts as well i like to over time put aside small amounts of cash than i can store.

I believe if you go all in silver then you are either going to get lucky and make it big or your going to get hit.

Wow 6.5% from a bank ??
Did you check this rate recently or 5 years ago ?
Which bank is offering such a rate - National Bank of Greece ?
Is there a guarantee against default by this bank ?

If you can share this information I will cash in my stocks and shares and consider moving into cash as it is a better return than the stock market on average.l

At least I know 6.5% daily compound from BankWest term deposit.

 

[unfunkable]

If you trust me enough, I can offer 7%(after tax) return on cash given to me paid every 6 month-ish. Only thing, is when you want your principal it may take me 1-6 months to get it.
Minimum amount 10k

pm me if interested

 

[Lovey80]

this 20% notion

For example if a person has an investment property (400K) plus cash (80K) maybe some shares (20K)
a total of 500K what are we basing our 20% on?

Total of net worth? Total of available cash? Total of share portfolio? Total of residual income? What?

It really depends what ones idea of "20%" is.

I would think total net worth .Thats how i calculate percentages on my investments .

Understood

in the above scenario even 20% would wipe out all the cash

otherwise it means sell existing hard assets ie RE and go into PMs

I treat it as 20% I have available to grow my net worth, not the net worth. That may initially sound strange but because I don't count equity in a PPOR as "available" to grow net worth, I guess to simplify it's your net worth minus PPOR equity. So the way I look at it is, if someone has 200k to invest in total and choses to use 80k for an investment property and 80k on shares then the last 40k will go towards PM's.

When you look at all the available tools you can use to invest that currency, then having 20% caught up in PM is a lot IMO. When you start talking about investing in business a lot of cash is required but the potential ROI can be quite high.

For me personally I like shares as a main form of investment followed by income generating business. Shares because they are very liquid and can be sold quickly if SHTF and traded for gold and silver, and business because of the cash flow opportunities it provides.

 

[940palmtx]

You know a bank paying interest? LOL

Um, all of them?

The point is YKY, maximizing your returns.

If you needed that 5k for bail money today but the price was down 10%, you just locked in 10% less profit. If you had that in cash instead, you wouldn't have to lock it in. You can just pay bail with cash.

On the flip side, if silver just crashed 20% and you have $2 in the bank, well, you're not buying any are you.

Any who, everyone's strategies are different, so if it works for you then all the more power.

http://www.money-rates.com/savings.htm
You consider 1% or less to be a legit investment strategy?
I don't know whether to SMH or LMAO

 

[fishball]

You know a bank paying interest? LOL

Um, all of them?

The point is YKY, maximizing your returns.

If you needed that 5k for bail money today but the price was down 10%, you just locked in 10% less profit. If you had that in cash instead, you wouldn't have to lock it in. You can just pay bail with cash.

On the flip side, if silver just crashed 20% and you have $2 in the bank, well, you're not buying any are you.

Any who, everyone's strategies are different, so if it works for you then all the more power.

http://www.money-rates.com/savings.htm
You consider 1% or less to be a legit investment strategy?
I don't know whether to SMH or LMAO

ReturnToZero is from Australia, all banks here pay sizable interest rates... (upwards of 4% easy).

 

[940palmtx]

Um, all of them?

The point is YKY, maximizing your returns.

If you needed that 5k for bail money today but the price was down 10%, you just locked in 10% less profit. If you had that in cash instead, you wouldn't have to lock it in. You can just pay bail with cash.

On the flip side, if silver just crashed 20% and you have $2 in the bank, well, you're not buying any are you.

Any who, everyone's strategies are different, so if it works for you then all the more power.

http://www.money-rates.com/savings.htm
You consider 1% or less to be a legit investment strategy?
I don't know whether to SMH or LMAO

ReturnToZero is from Australia, all banks here pay sizable interest rates... (upwards of 4% easy).

http://www.savingsaccounts.com.au/ CRIKEY! 6% +

 

[fishball]

Yeah I get 6.51%...

That is why parking money in banks is actually a potentially viable option down here in Australia.

Maybe not elsewhere.

 

[940palmtx]

Yeah I get 6.51%...

That is why parking money in banks is actually a potentially viable option down here in Australia.

Maybe not elsewhere.

Just another reason I love the Land of Oz
I'd still buy PMs if we got those kind of rates, just less.

 

[Lovey80]

Yeah I get 6.51%...

That is why parking money in banks is actually a potentially viable option down here in Australia.

Maybe not elsewhere.

Just another reason I love the Land of Oz
I'd still buy PMs if we got those kind of rates, just less.

While it is nothing compared to the states, as I think member 1for1 pointed out a while back, the Australian central bank (RBA) expanded the money supply by over 8% for the last two years running. So in effect a 6% interest rate from a bank is in fact a relative 2% loss. If I were in the states hard assets are the only thing I would be parking my money in. Heck even real-estate.

One thing the people in the US need to remember about Australia before thinking everything is rosy, Australians pretty much can't get a fixed rate mortgae for more than 5 years. On occasion up to 7. I am an extremely debt adverse person but if I could buy real estate at US prices with a 30 year fixed term at 4% I would back up the truck.

 

[Yippe-Ki-Ya]

Your comments throughout this forum are alarmingly similar to comment I read on stock forums and property forums from people that believe that particular asset class is the "only way to go" and everyone who disagress with them is either a "troll" or an "idiot". It smacks of being a zealot and to me seems not a great deal of personal thought and reason has gone into either their position, or the potential effect of repeatedly shoving their opinion down the throats of others as being the only choice.

REALLY??? :lol:

wow - that certainly is an interesting perspective... and you're entitled to your opinion.
i'm quite happy with my knowledge and understanding of why it is that PMs are the asset class to be in at this point in time.

you say you've listened to Schiff and Maloney and others (Mark Faber perhaps?) - but it doesn't seem as if much of what they have to say has sunken in ... else you wouldn't have made such ignorant comments.

Stop to consider that your situation (whatever that is) is likely very different from others. It disturbs me deeply that a young family might take your advice as gospel and not understand that there are indeed risks. I can assure you the only two things that are a "sure thing" is Death and Taxes.

I have a young family and i'm very happy with the way things have been going since i've become more financially aware.

 

[Yippe-Ki-Ya]

.

 

[940palmtx]

Yeah I get 6.51%...

That is why parking money in banks is actually a potentially viable option down here in Australia.

Maybe not elsewhere.

Just another reason I love the Land of Oz
I'd still buy PMs if we got those kind of rates, just less.

While it is nothing compared to the states, as I think member 1for1 pointed out a while back, the Australian central bank (RBA) expanded the money supply by over 8% for the last two years running. So in effect a 6% interest rate from a bank is in fact a relative 2% loss. If I were in the states hard assets are the only thing I would be parking my money in. Heck even real-estate.

One thing the people in the US need to remember about Australia before thinking everything is rosy, Australians pretty much can't get a fixed rate mortgae for more than 5 years. On occasion up to 7. I am an extremely debt adverse person but if I could buy real estate at US prices with a 30 year fixed term at 4% I would back up the truck.

Whoaaa, 5-7 year mortgages? I'm stunned...to say the least. My dad had made a killing off rental properties, not so much the rent LOL, but the appreciation, though the housing crash here in 08 took a heavy toll. I refinanced to a 15 year loan and saved about 140k in interest from my old 30 year.

 

[renovator]

Just another reason I love the Land of Oz
I'd still buy PMs if we got those kind of rates, just less.

While it is nothing compared to the states, as I think member 1for1 pointed out a while back, the Australian central bank (RBA) expanded the money supply by over 8% for the last two years running. So in effect a 6% interest rate from a bank is in fact a relative 2% loss. If I were in the states hard assets are the only thing I would be parking my money in. Heck even real-estate.

One thing the people in the US need to remember about Australia before thinking everything is rosy, Australians pretty much can't get a fixed rate mortgae for more than 5 years. On occasion up to 7. I am an extremely debt adverse person but if I could buy real estate at US prices with a 30 year fixed term at 4% I would back up the truck.

Whoaaa, 5-7 year mortgages? I'm stunned...to say the least. My dad had made a killing off rental properties, not so much the rent LOL, but the appreciation, though the housing crash here in 08 took a heavy toll. I refinanced to a 15 year loan and saved about 140k in interest from my old 30 year.

Lol not 5-7 year mortgages thats the maximum amount of time we can fix the interest rate for. Mortgages are still 25-30 years

 

[Yippe-Ki-Ya]

Um, all of them?

The point is YKY, maximizing your returns.

If you needed that 5k for bail money today but the price was down 10%, you just locked in 10% less profit. If you had that in cash instead, you wouldn't have to lock it in. You can just pay bail with cash.

On the flip side, if silver just crashed 20% and you have $2 in the bank, well, you're not buying any are you.

Any who, everyone's strategies are different, so if it works for you then all the more power.

http://www.money-rates.com/savings.htm
You consider 1% or less to be a legit investment strategy?
I don't know whether to SMH or LMAO

ReturnToZero is from Australia, all banks here pay sizable interest rates... (upwards of 4% easy).

We also have sizeable inflation. The CPI is a joke

 

[Ilikemetals]

The high interest in our bank accounts is the reason i'm P*ssed off with silver dropping again. I'd have been better off having held all my cash in the bank and smashing out the silver in monster boxes when it drops to the $20's. Too late now but yeh oh well