Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

If there was to be a severe and long lasting UK stock market crash...

28 replies

lightand · 02/03/2021 18:16

which assets if any would hold their value?

Gold?

Anything else?

I dont know if one is coming, who does,[I realise that last March to May there was a 25% crash for two months?], but wanted to know if there is to be a crash on perhaps the scale of the US Great Depression one, what would people advise, to "store" "wealth"?

OP posts:
fallfallfall · 02/03/2021 18:20

Land.
Being mortgage free is a huge buffer.
The UK stock market won’t collapse in isolation. I’m of the impression the global stock market is hanging in there.

Insertfunnyname · 02/03/2021 18:21

Gold

titchy · 02/03/2021 18:22

Well other than our house we have no other assets! But I'd guess fine wine and fine art would keep their value. Gold I don't think is that stable, and costs to store in the sort of quantities you'd need to ride out a long term depression.

Original poster
lightand · 02/03/2021 18:33

Would land really hold it's value?
In the Great Depression it didnt, if I have got my facts right.

OP posts:
Original poster
lightand · 02/03/2021 18:35

Gold hasnt been stable, but no idea if it would be good in a sustained depression.

Fine wine and fine art, no idea but you could be right.

OP posts:
Original poster
lightand · 02/03/2021 18:36

I havent known that much about investments up to now, but am now learning and getting more up to date. I had no idea so many investments are linked to the stock exchange.

OP posts:
GrumpyHoonMain · 02/03/2021 18:43

During the financial crisis pawnbrokers were picky over gold. They only paid good money for the minimum 18-24c yellow ‘pure’ gold you get from Indian or middle eastern jewellers.

cyclingmad · 02/03/2021 18:43

Bitcoin

Original poster
lightand · 02/03/2021 18:52

@GrumpyHoonMain Thanks for that.

@cyclingmad Am I right in thinking bitcoin too went down last Mar - May?

OP posts:
GrumpyHoonMain · 02/03/2021 18:53

Bitcoin values will drop as regulators roll out their own currencies

Mammyofonlyone · 02/03/2021 18:56

I am no expert, but I thought it was all relative. You invest what you don't 'need'. Short term, be that one month, 3 months, or 3 years, it may go down but ultimately it will recover and return profit. If you invest for the short term though it isn't the case. I am an absolute amateur though so may very well be wrong

MrsHuntGeneNotJeremyObviously · 02/03/2021 19:00

I would imagine that owning an asset outright like a house would be good. Even if it's value drops, it will recover and you wouldn't have mortgage interest rate hikes.
Tbh, assets like jewellery or even just gold,could do you no good because no one would be able to afford to buy it from you. The people who do the best would be the ones who grow their own food, generate their own electricity and don't owe the bank any money.

fallfallfall · 02/03/2021 19:32

if you have land you can feed yourself and sell food. others wouldn't necessarily have money to buy it from you.

merryhouse · 02/03/2021 19:35

Depends why you're asking, really.

If you're worried that your meagre pension funds will be further denuded you'll be best off making sure your housing is secure and well-maintained and you have some emergency rations and things to sell to your neighbours. (And that you're on good terms with your neighbours.)

If you're worried that you won't be able to afford your yacht, or your second home in Normandy, then invest in slum housing - even if its price drops, you'll still be able to get ridiculous amounts in rent from people who weren't as foresighted as you.

I wouldn't bother with bitcoin - sooner or later someone's going to do something about the huge amounts of energy it takes up. You don't want to be the one holding that particular parcel when the music stops.

Original poster
lightand · 02/03/2021 19:42

@merryhouse Asking in general and also because we may need to sell something[dont want to out myself], and want to know which is the safest thing or things to have if the stock market were to have a sustained crash.
Personally I cant see the stock market staying high for too much longer, but I guess that has been said by someone somewhere for ever.

OP posts:
Flyonawalk · 02/03/2021 20:03

I came on to say definitely not Bitcoin. None of us should invest in anything that we don’t understand.

Property is generally good, if you have the means. Values vary but demand has historically always been there.

Remember that often people who hold stocks hold them for years, and see then as a truly long-term investment. In these cases a crash is not very relevant as values will rise again in time.

MrsHuntGeneNotJeremyObviously · 02/03/2021 20:20

A big baseball bat like the walking dead's Lucille might be a good asset if money becomes worthless Wink

cyclingmad · 02/03/2021 20:28

@Flyonawalk

I came on to say definitely not Bitcoin. None of us should invest in anything that we don’t understand.

Property is generally good, if you have the means. Values vary but demand has historically always been there.

Remember that often people who hold stocks hold them for years, and see then as a truly long-term investment. In these cases a crash is not very relevant as values will rise again in time.

So research it and understand it just like you would do with any investment right.

Even if you don't buy an actual bitcoin there are other companies you can invest in who mine them. One company listed on LSE has increased well over 1000% think investing in at 10p and its now £2.60. If you had invest even £1k at 10p in less than 4 months thats now worth £25k (minus your investment). Not bad for a few months. And yes thats shares but if you pick the right sector itll weather any crash.

Then there is blockchain technology coming along.

Also Fintech is another growing area.

GrumpyHoonMain · 02/03/2021 20:29

[quote lightand]@merryhouse Asking in general and also because we may need to sell something[dont want to out myself], and want to know which is the safest thing or things to have if the stock market were to have a sustained crash.
Personally I cant see the stock market staying high for too much longer, but I guess that has been said by someone somewhere for ever.[/quote]
It dropped quite substantially during covid and is now rising. I know as I’ve already made a lot of money on Lockdown investments.

Honestly I do think you need to give yourself a wobble. World governments are not going to let us fall into another Great Depression like situation. The GD were caused by a perfect storm of high interest rates (rates were increased multiple times despite recessionary conditions), inequality, and a deep stock market crash. For example - it’s the reason why rates are low and will probably remain low during our lifetimes.

hedgehogger1 · 02/03/2021 20:31

Unopened rare lego

MLMsuperfan · 03/03/2021 07:43

Gold. Always believe in your soul.

Original poster
lightand · 03/03/2021 10:25

Have been wondering about other currencies. Would have to pick the right ones though.

I am thinking it is quite a long time since I watched any programme about a stock market crash. I need to refresh my memory I think.

Thank you for all the replies.

OP posts:
LunaHeather · 03/03/2021 11:50

@MLMsuperfan

Gold. Always believe in your soul.
😂

Seriously, OP, I worry about a global depression too but at the moment, only my pension, which I don't see as real, is linked to the stock market.

My worry is banks going bust or something so I also think gold but the storage cost puts me off.

I can't see any currency doing okay in a global crash?

NoMackerelInSwindon · 03/03/2021 18:50

@MLMsuperfan

Gold. Always believe in your soul.
Not only is it indestructible. It is always bound to return.

If I know one thing - it's true.

Mosaic123 · 03/03/2021 18:54

Loose very high quality diamonds, if you know what you are doing.

Swipe left for the next trending thread