Have you considered moving your savings into £ or Euros?

(23 Posts)
Draylon Sun 06-Nov-16 17:17:37

OK, I realise that for many people, the answer is 'what savings'!

But assuming you had some cash, say due to an inheritance, do you think you'd seek to limit any further 20% losses on it now?

Draylon Sun 06-Nov-16 17:22:29

Sorry, meant US$ or Euros!

Mine, such as they are, are already in worthless groats sterling sad grin

Antifrank Sun 06-Nov-16 17:41:32

If you want to move out of sterling, gold is probably the best bet. Who knows what will happen to the dollar post the election. And the Greek crisis has not been solved, is just lower down the crisis list at the moment.

Draylon Sun 06-Nov-16 18:48:36

Maybe Australian $? Good point re: gold.

Never thought we'd be the type who'd turn our money into sovereigns we'd smuggle over the border by night grin !

Mistigri Sun 06-Nov-16 21:05:04

I'd consider buying a gold ETF if you can find a broker who will sell to you (you'll have to complete an assessment because these are considered risky investments). Good hedge against exchange rate movements, but some people think it's overvalued right now. Will probably drop a bit if Clinton wins (which I am certain she will).

ReallyTired Sun 06-Nov-16 21:14:10

I think that it's a good time to invest in sterling if you have another currency to trade. I imagine that in five to ten years time sterling will return to a sensible level. The reason it's so low at the moment is uncertainty with Brexit and low interest rates.

I think that there will be another euro crisis.

Mistigri Sun 06-Nov-16 21:17:38

in five to ten years time sterling will return to a sensible level

You've forgotten about inflation

FlouncingInAWinterWonderland Sun 06-Nov-16 21:22:02

I don't think i'd move too much into Euros. I think we may see some ripple effect in that direction yet. Gold continues to surprise me. It just seams to keep going up. 20 years ago I remember being told property had peeked, it couldn't just keep going up indefinately - yet here we are.

ReallyTired Sun 06-Nov-16 21:24:10

"You've forgotten about inflation"

Erm.. what makes you think that inflation doesn't happen in other countries? Inflation is better than deflation. At least the U.K. Economy isn't in total collapse. In many ways a weak pound is tough on the eurozone. It makes it harder for EU countries to sell to the U.K. and easier for the uk to sell to Europe or the US. A weak pound is not a total disaster for the U.K.

Noneedforasitter Sun 06-Nov-16 21:30:14

The only thing I know about currency speculation is that absolutely no one has a clue.

But I doubt sterling will completely go down the pan, and unless you are talking about millions or are planning to live outside the UK at some point in the future, I suggest you are better off leaving it in sterling honestly.

Sgtmajormummy Sun 06-Nov-16 21:34:56

I'm in this situation right now.
I have a certain (large for me) amount of money in the UK and my whole life is abroad.
Without a UK address I can't open a bank account in my name, so the best solution I've found is to open a "foreign currency" account with my bank and park the sterling there until the exchange rate picks up.
I considered buying luxury goods like gold bars or a Rolex and smuggling them back, or having a holiday of a lifetime paid in £ smile. But the best way to use that money is to pay off our mortgage.
So I'm just waiting for the exchange rate to claw itself back from €1.12 to at least €1.20. It was around €1.30 before Brexit...

FlouncingInAWinterWonderland Sun 06-Nov-16 21:44:29

No.1 currency are currently doing £10,000 at a rate of 1.19 euro to the pound (I just went on money saving expert site and did a check). The pound has had quite a boost after the article 50 business last week. Its a game of chance but you mentioned a desire for 1.2.

Mistigri Sun 06-Nov-16 22:00:31

I think currency speculation is a mug's game unless you have an enormous appetite for risk and deep pockets. Gold (or some other dollar denominated commodity that you are bullish about) is a better approach.

I'm doing a bit of abitrage right now by using my sterling cash savings to buy things that are temporarily cheaper in £ than in euros (because pricing hasn't yet caught up with the exchange rate). My Christmas shopping will be in sterling except where vendors have already applied exchange-rate related price rises.

Mistigri Sun 06-Nov-16 22:02:27

Though admittedly at €1.20 I might be tempted to convert some sterling into euros (but I live in the eurozone so this isn't currency speculation as such).

Sgtmajormummy Sun 06-Nov-16 22:02:42

Thanks for that tip, Flouncing. I've requested a call back.

RortyCrankle Mon 07-Nov-16 07:21:28

I wouldn't put my savings into euros because I think the EU will break up at some point in the future and the euro will be consigned to the dustbin, where it belongs.

LurkingHusband Mon 07-Nov-16 14:31:28

BitCoins grin ?

TheForeignOffice Mon 07-Nov-16 16:02:29

If you're looking for a gold ETF/ETC, then SGLN is a physically backed one I use. I am quite an active trader so not sure of restrictions Misti mentions but it is quite volatile for sure and I'd only recommend it as a worthy stabilizer as part of a balanced portfolio of bonds, equities and cash. Yes, it gives a double buffer against GBP devaluation and global uncertainty, but it's already up about 20% since immediately before brexit...check out the charting functions on bullionvault.com if you want to get a feel for how it moves around in different currencies and in line with political events (more interesting than it sounds wink)

Mistigri Mon 07-Nov-16 16:34:53

Brokers are only allowed to sell you exchange traded contracts if you pass a "suitability" screening.

It used to be that a quick telephone interview was enough but the process seems to require form-filling these days. Any sensible investor with a varied portfolio would pass, but if you had only £5k in savings and tried to put the whole lot into an ETF/ETC I suspect they would have to refuse your business.

ManonLescaut Mon 07-Nov-16 17:19:31

I did that before the vote - shifted a lot of Sterling into € and $.

InTheDessert Mon 07-Nov-16 17:26:39

We currently earn in a currency pegged to the dollar. We are getting every cent we can into the UK at the moment. DH reckons exchange rates have given him a 15% pay rise.....

TheForeignOffice Mon 07-Nov-16 17:44:38

Thanks Misti, wow I didn't know that. It's probably a good idea though!

Draylon Fri 18-Nov-16 10:27:08

Well, post Brexit, looking to the future (which was going to be a villa in Spain) we're now thinking Australia. I am wondering whether to put money into AU$. Like all currencies in stable economies, it made huge gains against the poor old English groat, post Brexit, but I am worried what the Supreme Court judgement of early Dec might do.

Currently the rate is £1: AU$ 1.68; it was AU$ 1.96 the day before Brexit, it bottomed out at AU$ 1.58 on Oct 26th (for some reason).

NO idea where it might go, but I assume the Supreme Court will uphold the High Court judgement (though look where all the rest of what appeared to be 'the sane option' got us!) thus will buy us some time, rather than the end of March 2017 which doesn't really.

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