ressesion?

[dog breath]

so is a recession comming and what will happen. shall i withdraw my savings and buy options in something like gold?

[rugeleyboy]

it depends on how many savings you have got, but i wouldnt panic if i was you?

lets see what the bank of england will do?

[dog breath]

only got about 10k but still its very important to me as its half way to opening my own business!

[BigMac]

"Savings" in a UK bank/regulated financial institution up to a maximum of about �35k are guaranteed, so leave them alone.

If you had shares worth �10k, then you might want to sell them - but selling them after the market has fallen 5% just cements your loss - unless you think the market will fall further, in which case to sell now could minimise a loss.

Shares worth �x only see a real profit (loss) when sold - until then all gains (losses) are 'paper profits (losses)'.

[dog breath]

yes but if the value of the pound drops then its worthless so shall i get options in gold or something?

[BigMac]

No.

[dog breath]

why not? I mean my 10k may just be enough to buy a loaf of bread ir recession hits hard? but if I have options i will be safe right?

[sausagechips]

i think the price of gold will vary in other countries too, and if there is a recession less people will be able to afford it-or want to buy it and therefore the demand will fall decreasing the price.

If you noticed on the news it isn't just english companies which values have fallen in the FTSE, many other countries have too.


This morning Londons FTSE 100 actually increased to trade 1% higher following yesterdays 5.5% fall. Where as most Asian and European share indexes have fallen even more.

If there is a recession it will likely be a global recession rather than just one in Britain and it is all stemming from the US markets

[rugeleyboy]

in all fairness i think the UK has been gripped by a mini recession for the past 2-3 years, i am in business and all the traders i speak to say how hard it is at the moment.

we had a fairly good year last year but it was because of the terrible weather we had and not just people's desire to spend on "want".

[New Judge]

I think you are confusing "recession" with "inflation".

Inflation will see the value of your savings eroded, a recession may not. And it has to be hyper-inflations (such as that presently in Zimbabwe) before your �10k will only buy you a loaf of bread!

[dzug]

If there's a recession your �10K will buy you MORE as prices will fall.