Where is the safest place for your money

Mar 28
09:24

2013

Ann Hobbs

Ann Hobbs

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With Cyprus at the beginning of years of austerity what can be down to stop the same happening to us. it seems no where is risk free.

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Nothing in life is risk free and the situation in Cyprus has made it quite clear that not even the traditional way of saving; in a bank deposit account is safe from the dictate of Governments.

Imagine….. in one fell swoop up to half of your savings gone to bail out the excesses of other people. Initially Europe's leaders insisted the measures placed on the Cypriot banks were a one-off.  Now Jeroen Dijsselbloem,  Where is the safest place for your money Articles head of the Eurozone finance ministers, has called Cyprus a “template” for future EU bailouts. By implication any of us could be at risk and this could even affect small savers as the cost would be classed as a levy not a bank failure so guarantees would not come in to play.

Is there anything to be done other than keeping your money under your mattress?  Well, I have for many years suggested that a balanced portfolio should include physical assets as well as investments in stocks, banks etc.

I am talking about tangible assets that belong to you.  That you can trade in any currency. That you and pick up and take with you and that you a Government cannot take away from you.

These are global issues and if we look at central banks they certainly place a lot of importance on tangible assets like gold bullion.  Multi-millionaires also realise that physical assets are a hedge against the vagaries of the money markets. 

You don’t need to be a millionaire to take advantage, everything is relative, think clearly buy what you can comfortably afford and watch out for my book Sexy Money out soon.

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