Cash, what to do with it come negative interest rates?

Pasty · Oct 24, 2020

kermit said:
Can someone educate me on educate me on 'crypto currency'?

Look it up dude. A good source is Simon Dixon on Youtube and many more. Everything is a risk. However, Bitcoin is 'hard' money in that it is ultimately limited in supply. People equate to gold and silver and while these are physical mediums of exchange, we really don't know how much is out there, especially if Elon starts mining asteroids. Bitcoin is probably the hardest currency ever produced and now Paypal are saying they will accept it. I've been off the chart for the last few days so not up to speed but it's been lacking in the 'medium of exchange' dept. for a while.

It's very important not to confuse this with the new crypto currencies which may appear in the near future from central banks. These will be essentially replacement fiat currencies where a whole load of people get screwed over and they can continue to print more as they see fit. Hence, we are going back to 1971 with a great reset and starting again on the debt cycle. But you won't have any notes in your wallet and they will know where you have been, what you spent and on what. Happy days.

jackrussell101 · Oct 24, 2020

Pasty said:
The worst financial advice ever offered by someone who is not qualified to offer it.

Why are houses a bad investment?

Neddy flanders · Oct 24, 2020

Devil's advocate said:
houses?

I think inevitable that larger saving accounts will go into property.

Houses prices will rise because of this & renters will be stuck as renters. Likely higher taxes on buy to lets in the future.

can see more downside to houses at the moment. there is a short term upward trend out in the shires as people desperate to leave cities to a cleaner more Covid-free rural life style, but going to leave a vacuum back in the cities which will then pull prices back.
more importantly, converting every office block and commercial property to residential in the next ten years will mean supply outstrips demand and prices will plummet. i know Government already trying to counter this by immigration and bringing 3m HongKongers to canary wharf. friends who work in London offices are not renewing leases. literally tumbleweed blowing along some streets a the moment.

Neddy flanders · Oct 24, 2020

DrWazzock said:
Leave it in the bank. Sweep up worthless assets when the crash comes.

I keep hearing this and similar statements, but i cant ever find any 'worthless assets', always a queue of people there to bid the price back up. what are you thinking?

pellow · Oct 24, 2020

Pasty said:
The worst financial advice ever offered by someone who is not qualified to offer it.

Says the man recommending bitcoin

robs1 · Oct 24, 2020

Why dont all uk farmers join together and buy up Tesco or sainsbury, make it a uk only meat, milk and produce seller, let's take the profit from the job instead of giving it to them. Only point would be top retail managers need employing not ex nfu or gentleman farmers on the board but those already running businesses selling to the public.

Renaultman · Oct 24, 2020

Humble Village Farmer said:
Big minus is that they are over priced luxuries and when the sh!t hits the fan they are the first to fall out of favour.

Clive said:
if you look at historic data they consistently beat most other investments actually

if i had a time machine I would buy Apple shares and 250gto’s / mac f1’s ! at pretty much any point in the last 40 years

Also MK1 Escorts. Minis and Golfs.

Renaultman · Oct 24, 2020

serf said:
No , he was a nob head , all they had to do was turn up and ride the Crest of the wave ken clarke left them !

I'm fairly apolitical but the Blair Brown era has to be the worst in my lifetime.

SilliamWhale · Oct 24, 2020

Renaultman said:
I'm fairly apolitical but the Blair Brown era has to be the worst in my lifetime.

It was very good for a lot of people

toquark · Oct 24, 2020

Renaultman said:
I'm fairly apolitical but the Blair Brown era has to be the worst in my lifetime.

The repercussions of many of their policies didn’t become fully apparent until after they were in power.

Renaultman · Oct 24, 2020

toquark said:
The repercussions of many of their policies didn’t become fully apparent until after they were in power.

Selling the gold and scrapping the CAP rebate weren't and don't get me going on WMD

farmerm · Oct 24, 2020

essex man said:
The most well known is bitcoin.
The total amount of bitcoin there will ever be is roughly 21 million. About 18 million exist now.
Currently they are worth £10000 each .
If you want to buy some you can do it on an exchange such as coinbase.
I would recommend however that you don't leave your bitcoin on an exchange as it could be vulnerable in the long term.
Instead keep your bitcoin yourself at home, there are a number of secure ways to do this.
You can buy bitcoin using your pension if you have one, bitcoin capital gains are subject to CGT

There is a finite amount of any cryptocurrency but this nothing to prevent an infinite number of cryptocurrency's being created.... Bitcoin is the well known one but there are now over 5000 other!

Bitcoin has a value because there is a fixed limit to how many Bitcoins can exist but at the same time any single unit of any single cryptocurrency surely has zero worth when you consider that an infinite number of units of cryptocurrencies can be created.

Gold has a value because it has a has certain unique properties and it is rare. Now I am a miner (not a bit coin miner but an actual miner), I open a new mine and discover a source of a rare new material which is not gold but has all the same properties of Gold and I call it Gold 2 and I sell it to investors and get very rich... Amazingly someone mining the next hill find another new material with all the same properties of Gold and Gold2 but again it is not Gold or Gold2 so he calls it Gold3... For now Gold remains more trendy than Gold 2 or Gold 3 and is valued higher than Gold2 or Gold3 but there are still buyers who willing to buy Gold2 and Gold3. Along comes a chap who has discovered a mine for another new mineral he calls Gold 4.. big press coverage and Gold falls out of favor with Gold 4 booming leaving Gold values tumbling into the abyss until it is back in par with the value of Gold 2 and Gold 3. These class of Gold assets continue to grow in value and more and more investors pile in more and more money, more and more new miners find more and more new sources or more and more new types of Gold like material that is not Gold but identical to it.. until one day the supply of Golds that are not Gold it so great that it is no longer anymore precious than grains of sand.

Unless the number of cryptocurrency is somehow limited how can units of a cryptocurrency continue to appreciate in value?

robs1 · Oct 24, 2020

I know nothing about cryptocurrencies, why or how is the number of bitcoin limited, and how do you spend it in the real world, how does it get taxed etc.

Terryyen · Oct 24, 2020

Pasty how much have you invested in Bitcoin because you sound like a expert. If you read any of the reports of Bitcoin it is a very risky means of investment and the experts are expecting a crash in the future.

I said better to invest and get a steady return, there is a warehouse near here for sale at £800,000 which let and gives a return of £40,000 a year and after 20 years you have covered the cost and have a property worth a million plus. Better to be safe

Farmer_Joe · Oct 24, 2020

bitcoin to weird for me, my brothers done well but even he admits if governments went weird they could outlaw it, especially with its links to organised crime, plus i think the ship has sailed on it being a magical investment anyway.

As much as i do agree with comments above on housing/land it is a finite resource (well land) and if your looking to invest long term im fairly confident you will do well, same with housing but at the moment i would choose very carefully as some inner town houses seen stupid money but there as some reassembly priced ones around.

As above there was a medium garage forsale near me was really new with mot bay etc they were asking £475k ish new owner (not sure how much they actually paid) has re-let it as i understand for around 2.5k per month not a bad return plus its all really new so should be naff all mantaince.

i prob agree with drwazzock but think you might be waiting till this time next year for that

farmerm · Oct 24, 2020

Terryyen said:
Pasty how much have you invested in Bitcoin because you sound like a expert. If you read any of the reports of Bitcoin it is a very risky means of investment and the experts are expecting a crash in the future.

I said better to invest and get a steady return, there is a warehouse near here for sale at £800,000 which let and gives a return of £40,000 a year and after 20 years you have covered the cost and have a property worth a million plus. Better to be safe

If you loose the tennant I imagine the business rates bill whilst you are new tenant, which may take a while in a downturn, could take the shine off it. Also plenty of potential for large expensive maintenance bills and whilst the land may appreciate in value the aging commercial building may be close to demolition after another 20 years. Also is that return figure quoted before tax, if so you still well short of recouping your £800,000 after 20 years I think?

Terryyen · Oct 24, 2020

Yes understand that but less of risk, if you don't want to invest £800,00 then buying houses can give a good return, around here we could buy a property for around £100,00 and that can give a rental return of about £400 a month, of course in anything there is always a risk, its always about what one wants to do with their money

Pasty · Oct 24, 2020

There are far better ways of investing in property which is where the smart money goes. REITS for instance. No trying to get a boiler engineer or a roofer on a stormy january night. No rates or council tax when no tenant and so on.

As for Bitcoin, there are others but they don't have the same structure. I also like HEX but I have nothing invested in either at the moment for other reasons which a few on here know about. I would have thought it would be sensible to invest in a wide range of asset classes such as land, stocks, property, crypto, precious metals, art, wine, vehicles etc. Some are more liquid than others which is an important concern.

I think the best plan would be to build a diverse portfolio with a rage of goals from capital growth to passive income. Passive income is awesome. Especially if you can afford to re-invest it.

essex man · Oct 24, 2020

farmerm said:
There is a finite amount of any cryptocurrency but this nothing to prevent an infinite number of cryptocurrency's being created.... Bitcoin is the well known one but there are now over 5000 other!

Bitcoin has a value because there is a fixed limit to how many Bitcoins can exist but at the same time any single unit of any single cryptocurrency surely has zero worth when you consider that an infinite number of units of cryptocurrencies can be created.

Gold has a value because it has a has certain unique properties and it is rare. Now I am a miner (not a bit coin miner but an actual miner), I open a new mine and discover a source of a rare new material which is not gold but has all the same properties of Gold and I call it Gold 2 and I sell it to investors and get very rich... Amazingly someone mining the next hill find another new material with all the same properties of Gold and Gold2 but again it is not Gold or Gold2 so he calls it Gold3... For now Gold remains more trendy than Gold 2 or Gold 3 and is valued higher than Gold2 or Gold3 but there are still buyers who willing to buy Gold2 and Gold3. Along comes a chap who has discovered a mine for another new mineral he calls Gold 4.. big press coverage and Gold falls out of favor with Gold 4 booming leaving Gold values tumbling into the abyss until it is back in par with the value of Gold 2 and Gold 3. These class of Gold assets continue to grow in value and more and more investors pile in more and more money, more and more new miners find more and more new sources or more and more new types of Gold like material that is not Gold but identical to it.. until one day the supply of Golds that are not Gold it so great that it is no longer anymore precious than grains of sand.

Unless the number of cryptocurrency is somehow limited how can units of a cryptocurrency continue to appreciate in value?

Something that isn't gold is very different to gold, in the same way that something that isn't bitcoin is very different to bitcoin....in the same way that something isn't.....ad infinitum
Under this logic nothing is worth investing in as there is an infinite number of possible investments

br jones · Oct 24, 2020

Terryyen said:
Pasty how much have you invested in Bitcoin because you sound like a expert. If you read any of the reports of Bitcoin it is a very risky means of investment and the experts are expecting a crash in the future.

I said better to invest and get a steady return, there is a warehouse near here for sale at £800,000 which let and gives a return of £40,000 a year and after 20 years you have covered the cost and have a property worth a million plus. Better to be safe

I think you will find that the big pension funds are going to be pulling out of warehousing and large office space ,there is a crash coming and a warehouse is the last place i would put my money

Cash, what to do with it come negative interest rates?

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100% I’ve had enough of farming!

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