INVESTING YOUR OWN MONEY

Is the $ and £ sterling going to sink further my view it is.
I won't give my reasons here but if you look objectively with all the information from bloggers who are much more savvy than our Bank of England and the
Federal Reserve which has doubled it's balance sheet to over $2 TRILLION since SEPTEMBER 2008 and is more than likely be at $3 TRILLION by the end of this year.
The printing of notes which is not money but fiat money.the real money is gold and to a lesser extent silver.
If all the loans were paid in there would be no fiat money only gold.
Where to put your cash deposits of course you need a bit to pay your bills or a lot if you are in debt.
If you stay in cash deposits gilts at the current market you are going to have your money erased in the next 10 years.
Lets take January 1991 the start of the first Gulf War we were in recession and the Conservatives were in power Howe was the Chancellor.
On Monday 14th of January 1991 two days before the war started
Brent Crude was $29.5/barrel
GOLD £208.62 per oz($397.5)
FTSE 100 closed at 2080.8
Dow 30 closed at 2483.91
Nikkei 225 23213.25( at 14.11.08 8462.5 loss 63.5% in 17 years)
£/$ $1.9065
1 year gilts 11.45%
9 year gilts 10.36%
17 year gilts 9.97%
9 year US treasury 8.04%
29 year US treasury 8.19%
8 year Japan Treasury 6.81%
Germany 10 year Treasury 8.85%
Take two good Investment Trusts at random
TR City of London were yielding 5.066 net of tax
R.I.T were yielding 3.00% net of tax.
We had high inflation then what did Howe do he increased interest rates and used Friedman methods and squeezed out inflation by reducing the money supply.
I remember 30 economists sent a letter to the Times complaining about it .
But alas they were wrong.Inflation came down
Inflation
31.12.1990= 9.46%
31.12.1991= 5.87%
31.12.1992= 3.75%
31.12.1993= 1.59%
31.12.1994= 2.42%
31.12.1995= 3.475%
31.12.1996= 2.41%
THEN LABOUR CAME TO POWER ALL SORTED.
Today the picture is somewhat different
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Brent Crude was $53.75/barrel
Gold £502.475 per oz($740.7)
FTSE 100 closed at 4232.97
Dow 30 closed at 8497.3
Nikkei 225 closed at 8462.5
£/$ $1.4741
1 year gilts 2.02%
9 year gilts 4.09%
30 year gilts 4.44%
9 year US treasury 3.82%
30 year US treasury 4.34%
5 year Japan Treasury 0.92%
10 year Japan Treasury 1.5%
Germany 11year Treasury 3.73%
Take two good Investment Trusts at random
TR City of London were yielding 5.55 net of tax
R.I.T were yielding 0.38% net of tax.
If I had to pick which of these Investments over the next 10 year
I would go for City of London IT
R.I.T and GOLD.
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Take City of London investment trust from February 1991 to present income reinvested on ist February each year.
Starting on 1.2.1991 £10000 invested and reinvested dividends the value on 14.11.08=£36962.1
RIT CAPITAL PARTNERS PLC £10000 Invested1.2.1991 income reinvested
Total on 14.11.08=£129969.11SEE TABLE LINK