The govt only gurantess your money up to 40k i think maybe 50k now...its in the treasury notes, i have posted on tis before.
The below is regarding the US market but it is very similar to here...if you dont beleive me do some more research...sorry cant be bothered digging it up right now
QUOTE While cash may be king, and I have made that statement many times myself, it is only king if it cannot be defaulted on. Cash in the bank, above the FDIC limit, can indeed be defaulted on. Also note that money markets are at risk if they are invested in mortgage backed securities instead of treasuries.
The only guaranteed safe way to hold cash is in amounts below the FDIC limit. Above the FDIC limit, cash is not king and cannot safely be held as cash but must instead be parked in US Treasuries. Realization of this simple fact is likely behind the huge rally on the short end of the curve.
How Cash Can Lose In Deflation
Cash may be worth less in term of other currencies. Cash may be worth less in terms of gold. Cash (above the FDIC limit) can be defaulted on. The first two points above are in relative terms of course.
As for gold, there are many deflationists who believe gold is money and money will do well in deflation. I am one of them.
However, I have also said that gold would likely correct because leverage in hedge funds would have to be unwound and some of that leverage is in gold. Also there are many who have piled into gold for the “wrong” reason. The wrong reason is inflation
