# Where to park funds during the financial turmoil?



## communique (28 September 2008)

Ok I have been suitably terrified by some contributors of this forum in relation to how bad the financial turmoil will be so I decided to seek financial advice  to investigate gold, soft commodities as opposed to bank interest and shares.  What a mistake that was.   Unfortunately I left with brochures to obviously attract their best commission in nothing to do with gold and soft commodities. 

I read on this forum that some contributors are selling their houses waiting for a downturn, others are buying gold, soft commodities others are just trading waiting for a bounce.

I would appreciate just a few ideas of where contributors are parking funds for security during this turmoil?


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## MrBurns (28 September 2008)

I have the same problem, the best option is cash in the bank, until it hits the fan then hope there's no run here.
Physical gold just seems a bit hard but see the Perth Mint web site if you like.

No interest and there's costs associated with it, storage etc.

Though I've still got my eye on that option.

Sell your house ? Only if you're highly greared.

House prices will dive no doubt about it this time round, will take up to a year. 

Maybe 40% or more.


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## Glen48 (28 September 2008)

Gold coins are suppose to be the go as you have the Gold value as well as the Coin value.
they cost  the cost a bit more but could be a bit safer .
 The thing is when to buy with Gold going up and down like a *****s draws?
 I am one how slod my house and think it will be about 2015 before I consider buying the landlord is paying more than me each month to own some thing that is depreciating.


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## MrBurns (28 September 2008)

Yes I believe gold sovereigns are easier to sell than gold bars too.


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## nunthewiser (28 September 2008)

Gold ingots, shovel, uzi.... wait for the new great depression .........dig up......... rule the world


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## auric (28 September 2008)

http://www.rba.gov.au/FinancialServices/CGBondFacility/index.html


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## Tysonboss1 (29 September 2008)

communique said:


> I would appreciate just a few ideas of where contributors are parking funds for security during this turmoil?




I mix of 10 - 15 ASX blue chips,.... you'll get good dividends and they are already priced cheaply.

I wouldn't sell your house,... there isn't going to be a "crash" on the scale some people think and the cost of selling then rebuying later won't put you ahead.


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## Gundini (29 September 2008)

I like this offer from BankWest.. 8.10% and be as safe of those falling house prices 

Also agree with Tysonboss 1


http://www.bankwest.com.au/telenet/?promocode=08TNDGM3


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## pepperoni (29 September 2008)

Houses are just about the only thing certain to have value as well as use (either live in or rent) no matter what.

Gold could crash overnight and banks can fail but people need shelter.

They dont say "safe as houses" for nothing.


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## pepperoni (29 September 2008)

Tysonboss1 said:


> I mix of 10 - 15 ASX blue chips,.... you'll get good dividends and they are already priced cheaply.




We *hope* you will get good dividends but there is no gtee esp in major depression.


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## freddy2 (29 September 2008)

IMO the safest is one of the big 4 banks, they would almost certainly be bailed out/nationalised by the government if any one got into trouble. If you think the whole financial system is going to collapse, it doesn't matter because you (and everyone else) are stuffed no matter what you do now.

What utuility does gold have if the financial system collapses? If people aren't accepting cash for payment, why would they accept a shiny piece of metal?

It would almost never make sense to sell a house in anticipation of house prices dropping, the transaction costs are too big (stamp duty, real estate agent, etc etc).


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## Happy (29 September 2008)

pepperoni said:


> Houses are just about the only thing certain to have value as well as use (either live in or rent) no matter what.
> 
> Gold could crash overnight and banks can fail but people need shelter.
> 
> They dont say "safe as houses" for nothing.





True, but only until anarchy sets in.

Then nothing is safe, but I hope it never happens.


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## Sir Osisofliver (29 September 2008)

It's easy Communique.

Give it to me. I'll bury it in the back yard and take only 2% of the total to keep it safe for as long as you like...

_Unless of course we are talking about some serious money and then I'd have someone hunt you down and make you disappear and after 5 years have you declared legally dead and take the whole lot as finders keepers coz possession is 9/10ths of the law._

Wait did I say that last bit out loud?

Sir O


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## Spanning Tree (29 September 2008)

> Gold could crash overnight and banks can fail but people need shelter.
> 
> They dont say "safe as houses" for nothing.




You obviously didn't read my thread about living in a van.

Remember in America house prices went down by 30% in one year according to Case-Shiller House Price Index.


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## zolow (29 September 2008)

Gundini said:


> I like this offer from BankWest.. 8.10% and be as safe of those falling house prices
> 
> Also agree with Tysonboss 1
> 
> ...




only if they survive the economic turmoil... you might be safer in the big 4 as freddy4 says


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## auric (29 September 2008)

well ive posted my bank check to RBA after talking to them today:  was a two hr drive to my bank to get the cheque)
left a little bit in the account for some trading


http://www.rba.gov.au/FinancialServices/CGBondFacility/index.html

i might be over reacting but i feel better
cheers


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## Tysonboss1 (29 September 2008)

pepperoni said:


> We *hope* you will get good dividends but there is no gtee esp in major depression.





Thats right,... but then nothing is guranteed when it comes to investing.

I think the people that are running around scared trying to find ways to "not lose" are going to be worse off for doing so.

the old saying "Buy in gloom, Sell in Boom" has never been more true, But so many people seem to be doing the opposite and selling in gloom and waiting for the market to boom before they have the confidence to re enter.


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## trading_rookie (29 September 2008)

...are the big 4 as safe as everyone thinks they are? Swan has gone out on a limb and provided us with the Financial Claims Scheme which refunds up to $20K of savings, cheque accounts, and term deposits. Much to the amazement of the banks who claim a major bank hasn't collapsed in Oz for over a century and why would the government be putting such an offer on the table? 

What is unclear is how the scheme will deal with deposits over $20K. The 
liquidators haven't decided whether creditors outrank larger depositors...


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## nunthewiser (29 September 2008)

I posted this in another thread but not many replys , please forgive me for reposting but am intrested in others thoughts.



"Hi , wrong thread [perhaps...... question ........ how safe is Bendigo/adelaide Bank viewed bu you guys? recently pulled all funds/savings/deposits out of ANZ and moved to BEN .. i felt more comfortable with BEN after doing a bit of reading BUT would love to hear others opinions in these uncertain times


"Main reason being lower overseas exposure , mainl;y in house funded ie deposits to loan ratio, ANZ lack of confidence in there investment desicion ability , and just because the big 4 are viewed as the big 4 , does it make them safer ? Seems these days the bigger they are the harder they fall , American pillars falling by the day , i think they were viewed as invincible once upon a time too

only trying to find opinions on Bendigo as a banking institution not a Q and A on why i choose to invest where i do




thanks in advance


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## communique (29 September 2008)

Sir Osisofliver said:


> It's easy Communique.
> 
> Give it to me. I'll bury it in the back yard and take only 2% of the total to keep it safe for as long as you like...
> 
> ...




Dear Sir, I am shaken but not stirred...
P.S. Have another drink


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## Sir Osisofliver (30 September 2008)

Cheers:007:


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## grace (1 October 2008)

Commsec have an online investment account which earns higher interest than commbank on line.

In the fine print, it read that commsec is a wholly owned company of commbank (CBA) however, the deposit is not guaranteed by CBA.  

What do you make of that?  Would this be the same fine print on CBA's deposits anyway?  ie no deposit is guaranteed.....

Just curious, as I am in the process of opening the commsec online investment (as opposed to commbank, although I'm a bit unsure now).


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## Calliope (1 October 2008)

I think we were asked about financial turmoil, not an apocalypse. You can't get much safer than term deposits, however after inflation and tax you might just break even. For a little bit more risk and better returns, usually fully franked, look at the bank's hybrids. For better returns still and a little more risk check out the industrials hybrids.


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## CanOz (1 October 2008)

nunthewiser said:


> Gold ingots, shovel, uzi.... wait for the new great depression .........dig up......... rule the world




LOL, thats quite funny.

Cheers,


CanOz


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