1. Metals had a great day yesterday followed up by further strength this am as the dollar continues to swoon. Much as we expected. Gold this am is +15.9 to 1282, while silver is approaching 18 and is +34 to 17.89. Oil also catching a bid, up 45 to 46.48. Dollar down 42 to 93.31
    Dismiss Notice
  2. Week of 4/22/16 Closing prices & Chg Over Last Wk---- Gold $1230.00 DOWN 4.60-- Silver $16.90 UP 0.59-- Oil $43.73 UP 2.02--- USD $95.08 UP 40 tics-- Based on near term futures contract--- At JMB Current price AGE $1290.99 (1), SAE $20.22 (20)
  3. Added Heartland Precious Metals out of OK and LA to the map, Added Texas Precious Metals, and Added Provident Metals.

Personal Question: What to do with 1 Thousand Bucks.

Discussion in 'Topical Discussions (In Depth)' started by deadheadharry, Apr 15, 2011.



  1. deadheadharry

    deadheadharry Seeker Seeker

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    So, many of you know me, as it goes, I am 22 and finishing up college...

    I got one thousand dollars to do whatever with. Having it sit in the bank does me no good.

    I was thinking of opening an E-trade account or something along those lines... Discount broker stuff.

    If I was to invest, it would be in the commodity, agriculture and precious metal field... I would comprise my portfolio with ETFs.

    Bad idea? Good idea? I know many of these things are at highs and while I am afraid of that, I do realize that, once inflation starts coming in, waiting for a pullback will make no sense, since inflation will just carry all of those things higher (nominally).

    If not investing in the marketplace, what other ideas do you fellas/gals have for young student with a grand to play with?

    Appreciate the info.
     
  2. EO 11110

    EO 11110 He Hate Me Mother Lode

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    i like your idea.

    another one is physical metals -
     
  3. Anakin

    Anakin Silver Member Silver Miner

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    ~20 1 ozt. silver coins.

    (Wow, 20 ounces with premiums is approaching $1000.)
     
  4. AceNZ

    AceNZ Silver Member Silver Miner

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    In the current environment, stocks, bonds and commodities are really not much more than gambling -- very high risk. Insane amount of insider and industry manipulation that's best left to the pros. Vegas would be more fun, if you're inclined in that direction.

    Silver has been on a tear lately -- what about fractional gold or platinum? A half-ounce platinum coin runs about a grand:

    http://www.apmex.com/Product/53/1_2_oz_Platinum_American_Eagle___Random_Year.aspx

    If that's too "boring" (IMO, boring is good when it comes to finances), how about something durable and concrete that you would get pleasure from every day. Do you have any hobbies? Or, better yet, something that could further your education and/or career?
     
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  5. Zed

    Zed Kangarude! Midas Member

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    Wait for summer then buy silver at the lows.
     
  6. deadheadharry

    deadheadharry Seeker Seeker

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    First, EO- Yes, I have thought about buying physical metals and while in my brain I know(feel) that they will continue there path upwards(or dollar downwards) I just have a bad feeling about buying the metal now at these levels. I have watched for all this time and seen it go up up up and now when I am finally ready to invest, I am getting in at highs of the move. Scary thought.

    AceNZ- Hobbies as of now are really just taking care of the girlfriend, economics and trying to enjoy myself however that may be... Nothing to concrete. I buy books and read those (Just finished Rollback and bought Doug Caseys book Crisis investing). Trying to further my education now by moving onto a better school.

    And Zed- This has been my thought... I basically am hoping as of now that I can see SOME correction (10-20%) in the silver market/entire market. If that occurs, obviously I will jump into physical metal. The issue I see is that, once the dollar really starts dropping or people become fearful, then they leave paper dollars and as inflation comes forward, more people move from faith into real assets... It would suck waiting for a pullback while it keeps going up, up, up.

    Also, as I stated, even for me to buy 1,000 dollars worth of silver, what will this help me further? A 20% move in a year doesn't do much if the total amount is 1 grand.

    More responses are appreciated and thank you for the current posts :D
     
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  7. Libertaurum

    Libertaurum Gold Member Gold Chaser

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    I agree. Assuming you already have some metals, I'd consider the e-trade route. If you do your homework, penny stocks might be a good high-risk option, but there is a learning curve... Otherwise, you might consider buying a half-ounce of gold and the change in silver.

    NIA, JMO

    Best of luck.
     
  8. Zed

    Zed Kangarude! Midas Member

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    We should find the lows by July/August but there is no guarantee that they will not be high lows! Either way you can take some confidence that there is most likely only upside from there. The $64Q is the low higher than todays price? Odd are no... maybe even as low as $25 or $30. This has been an epic run and if history is a guide it will lead to an epic gut check! + We are ten years in without a big correction in gold... it is due soon, this year or the next few. If gold gets really hot into June it could be half time for that market this year (big correction)... if so silver will follow, actually overtake, to the downside. Anyway... history/odds favor summer buying!
     
    Last edited: Apr 15, 2011
  9. Malus

    Malus Gold Member Gold Chaser

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    I think Ace put it best. Be very wary of any paper/electronic investment. If you've lurked for a while, then you must realize that we're heading for a world of hurt. In a world of hurt how does one survive. Not continuing to play in this market as it sits. Remember, in 07' when it all started unraveling, the MSM was pushing the paper markets (DOW 14,000), everything rosy while in reality the world was coming apart. Then wham, came out of nowhere and whack, everyone loses a sh*tload. Now, the DOW is running right back up, people are pushing all in to make up for previous losses, MSM rah rahing the markets again, guess what? Double wham coming. But, this time it is obvious that all is not well and yet people think they can win playing the bankster's game. Pay off any outstanding bills, buy physical PMs, prep for at least short term survival. I see by your last statement that you're looking for quick rich. That'll be a lucky guess at best in todays markets. Metals are your safest/best bet in this current cycle, you gamble on all else. BTW, how do you know these are the highs for silver? There seems to be a lot of speculation on "what" silver should be at, and the general consensus is that it should be way up there, which would make today's prices irrelevant. Some days I buy little, some days I buy a little bit more.........
     
  10. TnAndy

    TnAndy retired guy Midas Member

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    And substitute "or anything else" in for silver in your statement, and you've answered your own question.

    Without knowing a WHOLE lot more about you and your situation, giving any financial advice is pointless.

    But if a thousand bucks is all there is between you and being broke, I would keep half in physical silver, and the other half in cash, in your cookie jar......both constituting the bear minimum in the form of an emergency fund. Be dang unhandy if your car drops a transmission the week after you sent it to Etrade, and it takes 3-5 days to move it back to your bank to cover a check to the transmission shop while you walk to work.
     
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  11. donkey

    donkey New Member

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    Two years ago while in school I put a grand of change into an etrade account. I started playing with penny stocks.

    When you have money on the line you are invested in a much different way than when you are by simply watching and reading from the sidelines. You are more interested, you follow every lead, you look up all the things you don't understand, you dig more into companies and do better due diligence. Eventually you'll start to recognize and fix your own bad habits and weaknesses. You'll start to see the difference between legit companies and the ones that are all image and advertising.

    I agree with whoever said there is a learning curve.

    I put in the 1k as an investment in my education more than anything. I'm glad I made the big mistakes trading/buying stocks with that sum of money rather than with the amount I trade at the moment, or with my future accounts. I've let all my friends know to do the same thing and quite a few of them have followed the advice. Make the mistakes with the small sums.
     
  12. shades

    shades Gold Member Gold Chaser

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    Ah, to be young again, when $1000 was a lot of money to me :-)

    Check out that show (Auction Hunters) where they go around buying storage units etc. That is one of the quickest ways to turn over cash. Go to garage sales, deceased estates, clear-outs, auctions. Ok, the show is obviously pretty rigged to show off their big finds, but big finds do happen... with some early mornings and hard work.

    Be ruthless though, only buy at knock-down can't lose prices. Then check-out/clean up what you've found, turn it around and stick it on eBay. Make sure you are going to make money on every deal, that's all I can advise. You HAVE to know when to walk away... when your eyes get bigger than your wallet usually... Always pretend it's your last $1000, 500 or 20 bucks... that stops you wasting it.

    Just know when to walk away... I've lost money and made money on auctions etc. Auctions are usually a last resort, there are better deals to be had privately.

    I once turned $10 into $1250 by buying something I recognised, so you can do the same.

    If you are really stock-market savvy you can make money there, but there are more risks and it is less tangible. Remember that Warren Buffett got started, buying and stripping companies that were going bankrupt, just selling off their equipment etc. That is not rocket-science, it is just good business.
     
    Last edited: Apr 15, 2011
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  13. slackercruster

    slackercruster Seeker Seeker

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    Paper trade first to see how you do with stocks

    If I had to do it all over again I'd just put it all in 90% junk or 1 oz rounds.
     
  14. Ozark

    Ozark Seeker Seeker

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    I would find my local coin shop and buy some 90percent silver. There is nothing wrong with having some physical silver on hand. You can always sell it back to the store if you need the money. Try buying a set amount each week. Before you know it, you will have a nice little stash that keeps going up in value each week.
     
  15. WilliamC

    WilliamC New Member

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    IMHO you should have at least 1 or 2 K cash on hand, immediately available, at all times. Not quite walking around money but that you can get without having to go to a bank. You never no when you need cash quick.

    Then for 1 k in PM money I'd go for 1 oz AG coins/bars.

    Then there should be some level of cash beyond the 1-2 K that you should also build up, again outside of banks. Everyones comfort level is different, mine is about ~$20,000. With that much I can respond to many many emergency scenarios that would devastate broke people with just a bit of inconvenience to myself. Your level may be lower or higher, but having a few months of living expenses in cash is a safety net most Americans only dream about, and if you do come across a great deal you can act on it immediately.

    After that my PM purchases would depend on my cash flow. Fractional/1 oz AU coins and more 1 oz Ag coins depending on whats available.

    But don't let yourself get PM heavy and cash short, or you'll be selling them right when the market makes a big correction.
     
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  16. ~BS

    ~BS Gold Member Gold Chaser

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    WilliamC is right. The bigger your monthly expenses, the larger your cash cusion needs to be. Nothing worse than a forced PM, stock, vehicle, etc sale.
     
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  17. VTEEZER

    VTEEZER Seeker Seeker

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    I know I'm getting old and the memory is failing me a bit but I don't remember any Summer lows last year. For all the people that were waiting for Summer silver @ $ 15.00 last year, how many Oz did you buy at that price?

    Buy some food that will store with your grand. With the kind of inflation in food prices were seeing right now it looks like a sure bet.
     
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  18. Irons

    Irons Deep Sixed Mother Lode

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    22~??? Hookers and Blow, do it while you can!!~:biggrin:

    Someday you will have a crabby wife and kids and a life sucking debt load and you will think back at all the fun you missed.
     
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  19. Canadian-guerilla

    Canadian-guerilla hunter-gatherer Gold Chaser

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    +1000

    people have to much faith in paper/digital promises

    buy something you can hold in your hands
     
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  20. Usc96

    Usc96 Gold Member Gold Chaser

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    Good first post!

    It is commendable that the OP is interested in investing his $1K, but if it is his only money (not sure if that is the case), I'd err in favor of setting it aside as a safety net. One grand in Silver is not going to make you rich.

    If it is extra money, then by all means, buy some PMs if so inclined. I did the same thing with Intel stock when I was in college, and it grew enough in a few years ($1K growing to $5K) that I was able to buy an engagement ring. Back then $5K was all the money in the world to me. Once you get established in your career, say in 10 to 20 years, $5K will be a rounding error.
     
  21. REO 54

    REO 54 Midas Member Midas Member

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    Funny, I would have thought that would been BudFox's advice!
     
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  22. phideaux

    phideaux Mother Lode Found Mother Lode

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    DHH, go buy the entire Dead collection (whatever you don't already have)..

    It ain't a PM, but it will be something you will enjoy for the rest of your life and pay you returns beyond money.

    [​IMG]
     
    Last edited: Apr 15, 2011
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  23. NotTheOne

    NotTheOne Seeker Seeker

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    Wait until later this year if you're thinking about investing (gambling) in the stock market. The sentiment is that there will be a pullback as gains are not sustainable. And even if that doesn't happen, there probably won't be much growth (in current prices) either.

    Take about 1/3 and invest in high dividend, but stable companies. Here's a few to consider. Prices as of 4/15 @ 10:10 AM.

    Altria - (MO) - 26.87 - 5.7%
    Reynolds American - (RAI) - 36.30 - 5.9%
    AT&T - (T) - 30.36 - 5.6%
    First Energy - (FE) - 38.48 - 5.8%

    Taxes on dividends can be less than interest on cd's (15% vs your tax rate). Sure, congress is thinking of raising that to 20%, but it hasn't happened yet.

    PM's are nice, but some cash flow is nice too. Sure silver's going up, and inflation is risings and pm's offer wealth preservation, but you have to cash in that silver coin to buy anything. And pay a premium to do so.

    Take another 1/3 and buy some pm's of your choice to fondle.

    Take the last 1/3 and ........... well, you figure that out, you're 22. Go have some fun. The world may be ending soon, or not.
     
    Last edited: Apr 15, 2011
  24. <===Foolsgold

    <===Foolsgold Gold Member Site Supporter Gold Chaser

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    Must I tell you what to do with $1000?

    [​IMG]
     
    Last edited: Apr 15, 2011
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  25. REO 54

    REO 54 Midas Member Midas Member

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    "Because honestly the best things in life are life experiences."

    Good point. The only thing you can take out of this life is your experieces and memories. Take a trip or do a thing that will last a life time,because when you get older and more
    obilgated to your responsibilities you may not have the oprotunity to do so.
     
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  26. GodspeedMetals

    GodspeedMetals Gold Member Gold Chaser

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    If you have any debts, pay them off.

    I hate to say it but if it's $1k, you might as well keep it as is. You may need it during the transition to social/economic instability (we're in the process).

    Just a thought.
     
  27. northfarmer

    northfarmer Seeker Seeker

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    Im a little shocked at the responses here.

    1000=one good gun
     
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  28. DonShimoda

    DonShimoda Gold Member Gold Chaser

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    honesty...when will everyone get it?

    The price may drop but there won't be any physical for sale!!!
     
  29. REO 54

    REO 54 Midas Member Midas Member

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    Well your right.Lots of good memories and good times can be had with a gun.Plenty of shooting sports and disciplines out there,plus hunting of course. Good call Nfarmer.
     
  30. Irons

    Irons Deep Sixed Mother Lode

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    May happen for a year or so, big flipping deal it will be back..
     
  31. pre-64'

    pre-64' Slaying Debt for Gold Gold Chaser

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    Anything in paper and you risk losing it all. Physical gold or silver? You will always have a piece of the rock.

    But if you feel the economy will trend upwards(above and beyond inflation), a strategic investment in paper might do well. But at this point I doubt it. Either wait about 5 years, or go physical.
     
  32. JEKYLL-7

    JEKYLL-7 Seeker Seeker

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    I'm with shades on this one. Scavenge through other people's yard sales, charity sales, etc. It's a great hobby, it will generate some money if you do it properly, and you will learn a lot. I posted back on GIM one about a six-setting set of sterling flatware I purchased from a "recycle" center for two bucks. Besides making a few bucks, if you're diligent you can also accumulate silver at fire sale prices.
     
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  33. TnAndy

    TnAndy retired guy Midas Member

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    Yeah....good answer.

    With that, you can hold it to the head of the mechanic fixing the transmission that fell out of your car AND clean out the cash register on the way out. A 'two-fer'. Why didn't I think of that...........
     
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  34. Golden Rivet

    Golden Rivet Seeker Seeker

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    Wait a couple of weeks and then blow the lot on a tank of gas. :biggrin:
     
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  35. REO 54

    REO 54 Midas Member Midas Member

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    See,you rememberd your good times TnAndy....and value!:biggrin:
     
  36. Silver Sayyid

    Silver Sayyid Seeker Seeker

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    This just goes to prove I've been reading too many of Budfox's missives. The first thing I thought of was a Good Hooker and some blow.....should give ya memories to keep ya warm for a while.
     
  37. deadheadharry

    deadheadharry Seeker Seeker

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    Well, I must first state regarding hookers and blow this... I did follow the remaining members of the Grateful Dead around for about 2 years. Drove well over 100 thousand miles + airlines. I spent untold amounts of $$$ on gas and the rest of the fun stuff. I had my fair share, it is out of my system and reality is now here.

    Second thing... This 1 Thousand dollars is money that I "can afford to lose". I wouldn't like to lose it but, it isn't like it is necessary for life or if my transmission fails. This is what I want to start building a nest with. How big or small that nest gets, we will see. As of now, I just purchased about a few copper coins at roughly 15% below premium. That is just something to get started with for fun and cheap. I'll keep those for as long as I need. I just picked up a few 1959 Dimes, which, melt value are worth give or take 3 bucks. Figured just another place to park the $$$ and I got the dimes for free.

    So, all in all, I can use this money to poke around. All the suggestions have been great and appreciated... Keep them coming!
     
  38. Unca Walt

    Unca Walt Midas Member Midas Member

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    Not true. $280 gets you a brand-new 30.06 from Gander Mountain:

    [​IMG]


    $200 gets you 11 boxes of excellent ammunition.

    [​IMG]

    Blow the rest on rice, beans, sugar, oil, water purification.

    $1000 will not get you anywhere in specie at this time. FRN's still work on the above.


    FOR NOW.
     
  39. ME Co.

    ME Co. Silver Member Silver Miner

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    First thing to do with your $1K is go around to all the banks and buy all the half dollars people have deposited. There are alot of hunters now but you may get lucky and get some silver for FV. Then if the bug bites you continue, if not at least you hunted it once. I try to never spend anything I haven't hunted with first and over the average the hunt has been very good to ME. Happy Hunting, Mark
     

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