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Soverign Default

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Anonymous
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Soverign Default

Hi,

 

I am living in an Asian country where a 25% probability is predicted for a sovereign default within next year. I have most of my saving in long term money deposits in bank. I guess the money value will go down in an event if a default.

 

Govt. Has put restrictions in taking money out of the country or converting to a foreign currency.

 

What are my best options to safeguard my wealth? Should I invest in real estate? Should I buy gold ?

 

Your suggestions are welcome.

Message 1 of 5
4 REPLIES 4
Horseshoez
Senior Contributor

Re: Soverign Default

Both are good hedges against monetary fluctuations; I guess a lot depends upon the real estate market in the country where you live.

 

If this type of thing happens on a semi-regular basis, once things ease up, you might want to consider some off-shore investments.

I categorically refuse to do AZEO!
Message 2 of 5
GatorGuy
Valued Contributor

Re: Soverign Default

There are real examples in countries with severe inflation the real estate market plummeted too.

 

Gold is probably your only safe hedge. 

Message 3 of 5
Anonymous
Not applicable

Re: Soverign Default

Does your bank have international branches? If so, you can travel to a different country, and withdraw or transfer the funds there. 😉

Message 4 of 5
ChargedUp
Senior Contributor

Re: Soverign Default

Gold or silver are usually pretty solid investments and can be traded for virtually any currency in the world should it be necessary.

 

I second setting up banking in another country if possible. You could cash out the metal investments to there if needed as well.

Message 5 of 5
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