The Federal Reserve chairman Ben Bernanke started another round of Quantitative Easing (AKA QE3 / Printing Money) yesterday and (predictably) Gold jumped from £1074 / oz to £1098 / oz in short order.
Anyone paying attention will know from today that their cash is worth a little bit less now. Anyone seriously paying attention moved their savings from banks ages ago into Gold, Silver, Property and P2P lending sites (like ZOPA, Funding Circle).
The whole point of QE is to transfer wealth from productive people (ie normal working people) to zombie institutions (ie banks) to keep them afloat for just a little while longer.
Anyone with a normal savings account earning pitiful (1% ~ 2%) interest rates might want to have a re-think.
I gave up on regular savings accounts a while back and with interest rates at a pitiful 1% so should you.
Here are some alternatives :-
ZOPA – I have been using them since 2005 and have got an average return of 7%. ZOPA is mainly for person-to-person lending and they have a fabulous party every year in London
Funding Circle – I have just joined so can’t give first hand account but their blurb says you should get a return on 8.9%
Bitcoin – is an experimental new digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: managing transactions and issuing money are carried out collectively by the network. Your Bitcoins are stored locally on your computer and can be converted to a currency of your choice by the Bitcoin exchanges. Beware: the exchange rate can be a bit volatile !
I will add some more later on.