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 Replies: 56 / Views: 6,415 |
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Moderator
 United States
189142 Posts |
Quote:
The key is remaining well diversified. Do not put all your eggs in one basket. I personally have multiple investment vehicles which includes a little PM.  |
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New Member
 Canada
19 Posts |
Let me further explain my situation.. I have 30oz of silver and 1/2 oz of gold, I have 3K of money not willing to lose and 1K play money. The 3K I'm most likely gonna put in a gic and the 1k probably mutual funds, will invest in drip when I'm 18, in two months..
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Pillar of the Community
United States
711 Posts |
I think you are doing great huynhhh. Out of all the investments discussed I would like to add one more, skills and the tools to use them. If this is play money, maybe you'd like playing around with electricity, carpentry, or plumbing. Doesn't sound much like play, but it can be. Check out this link and find a project that let's you scratch that itch and put a couple of dollars into play and learn some universal skills while playing. http://makezine.com/projects/?path=FromNav |
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Moderator
United States
23522 Posts |
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It is my belief that interest rates really may not change that much in at least a 2 yr window and perhaps not even that great in a 5 yr window. We don't disagree at all, then.  Per the OP's request, I'm thinking purely a 50-year window. Near-term windows as you're discussing, I'm bullish on precious metals. They're low, and I think artificially low. Again, move money with prudence, but I'd get into silver today if my planned hold was <10 years. I'd just be waiting for the moment to flip. And honestly, if return wasn't a high priority I've no problem at all with "parking" money in PM or well-chosen coins. They're not going to solve all of silver's uses in one fell swoop, leaving ample notice to get out of it. You'd have to move then, though, because the moment the first technological hurdle falls the rest will follow quickly. |
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Valued Member
292 Posts |
When I was your age (never thought I'd get this old to say that!) I didn't think much about investing. Once I started to make money with a job and get enough money to where it wasn't all going towards gas and car insurance, I wanted to learn about precious metals but never did. I wish I had gotten in then so props to you for thinking about it now.
At the time, I only really had a savings account and that does so little for you. Everybody should have a savings account even though it only gives you a tiny tiny insignificant amount of money in return. If you're interested in a savings account actually making money then look towards online banks as their interest rates are the best you'll find.
I really believe in investing in precious metals as either a safety or an investment. Mention of precious metals go back as far as people could write about them. I think gold is too high to invest in at the moment but silver still has room in my opinion. Those are choices I've made when I've researched and shouldn't be something you trust me about. Look into this stuff yourself. When you do your own research, you'll feel better about the choices you've made.
The stock market is also something I started to get into when I was only a little older than you and I regret not going harder into it when I had the opportunity. A stock that has a high dividend will offer you potentially better opportunities for investment over a long period of time than many other choices. Also, if the stock does well then you're in luck. The obvious downside is if the stock does poorly then you could lose gains or even money you originally put in.
There's so many choices out there and what I >think< shouldn't influence your choices at all. Do some research, and think of an "investment" as a potential loss because you could lose. Don't invest more than you can afford to lose.
Good luck.
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Valued Member
United States
156 Posts |
And it may go without saying, but wipe out your credit card debt first, then start your investing. That debt eats into you profits something terrible.
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Moderator
United States
189142 Posts |
It does. Interest paid is interest lost.
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New Member
Canada
19 Posts |
Okay, so I've done some reading and here's the verdict that I'm hoping someone will talk me out of if they think I'm being dumb..
I bought 30oz if silver for about $21-22/oz and am feeling a bit salty about it,
I'm going to purchase about 50 more oz to break at an even 80oz, why? Dollar cost averaging (took that from something I read about stocks. After purchasing the additional silver, my hopes is to bring the $/oz down by maybe a buck or two.
Yes, you said silver and gold are on a downtrend, but I have been reading about the Greek exit, and what not and people have been speculating that silver and gold will sky rocket by the end of 2015. Of course this is speculation.
Another point as someone said about silvers value is in it's industrial use, who holds the most silver? Probably the government of some sort right? And I'm sure they bank a lot of tax $$ in silver and gold, and if they knew somehing to replace silver is used, I'm 100% positive they would manipulate the market so prices skyrocket for their own benefit.
Then I will sell my PM's when the price goes above a certain point.. Maybe $30/oz? I'll make a return on my initial investment and with the capital gain I'll invest it in an assortment if DRIPS, mutual funds, GIC's and maybe high risk stocks.
Like I said, I have 3k of money I'm not willing to lose, 1k of money I wouldn't lose sleep over losing (maybe a little bit) and also have an additional 2ishK stashed away for absolute emergencies (ha, I keep changing the play field ;)
Reasoning behind not investing in DRIPS And such right now?
In Canada, I need to be 18 to open a drip plan by myself, as well as a TFSA. So benefits and opportunities truly open when I'm 18, a few months away.
What do you guys think?
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Moderator
United States
23522 Posts |
I think you're working hard enough to learn that there's no reason to dissuade you. You strike me as a person who is soon going to be earning enough money that $1k at your current age won't make a ton of difference in the long term, because you're going to bank income in responsible fashion when you do earn it.
Downtrends are for buying. I don't think they're far from bottom. Go have fun. Learn how this stuff works when it's your own cash and your own tolerance for risk, not ours. Your head is clear.
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New Member
Canada
19 Posts |
Oh, forgot to add, I have 15K in an RESP for university, should grow to 21K by September so I'm decent in terms of school tuition.
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New Member
Canada
19 Posts |
Thank you superdave, it truly means a lot to me if you knew how I grew up, it was thanks to my parents that I have the 15K they left me otherwise I wouldn't even think twice about anything and would be saving towards tuition!
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Moderator
United States
23522 Posts |
You're welcome. I feel compliments are warranted in this case. Another factor in my thinking is, if you're this interested in learning the subject at your age, by all means do it even if you blow the $1k. What you learn now will more than pay off in wiser decisions down the road. And do it before University stuffs your head full of other things and dominates your intellectual time. |
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Pillar of the Community
Canada
3049 Posts |
I give you my thumbs up kid! Now you're still a kid ... get of the net and go have some fun! hahhaa
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Pillar of the Community
Canada
3692 Posts |
TFSA: You'll make more money with side businesses in my opinion than to have $1000 sleeping at 1.4% per year. The interest is an unfunny joke. Really, you're going to put $1000 of untouchable money to get $14 after a whole year, even a kid knows this is stupid.
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New Member
Canada
19 Posts |
Libertad, perhaps you didn't read the whole thread (which I don't blame you because it's sort of long) the TFSA Is used as a 'loophole' to not pay taxes on capital gains on investments, or reinvested dividends.
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Posted 04/29/2015 11:12 am
