SHORT STORY: College student. 61oz of silver, 1/10 oz gold. Is this where my money should be right now? This is strictly investment money; I have enough set aside in cash to cover all my expenses. FULL STORY: I'm a sophomore at the Pennsylvania State University. Entered the investing game with Precious Metals in January 2011, started buying in the low 30's and high 20's. Got thrilled by the spike to $49.70ish, and rode the crash down to $34. Sold half my stack, figuring it would go lower. Ended up being the bottom, of course, so I sat out for awhile. Started re-accumulating when it rushed $42 last week, in preparation for the debt ceiling fiasco. Passed up the opportunity for a $1,700 gold eagle. Shame. I currently hold about 61oz of silver, and 1/10 oz gold. These are my only investments, and they account of about 1/3 of my financial worth. Being a university student, I have plenty of time for investments to mature, so I'm fine holding onto something for awhile. But am I in the right place? If I pull out now, I'll realize a $600 profit. I have plenty in savings, so financial need is not a factor. If I sell, I'll likely invest it one way or another. Looking for opinions of the elders here. I'm willing to admit I'm not very knowledgeable here. I WILL do my own due diligence, and ultimately make my own decision, but I want to hear some other perspectives. Do I say in the PM market? If not, where else should I go? Looking for long-term profits. Thank you!
Young Codgers have a HUGE advantage over Old Codgers! TIME!!! But the most important time is the next 5 to 10 years, that is when it is all going to happen, and hopefully pass. Like Jim Rogers says, Uni students should get a degree in agriculture or such, NOT basket weaving or tree hugging. Something that commerce and industry NEEDS Put all you possibly can in PMs, and stay mates with your parents, you will probably have to move back in soon. JMNHO OC PS, Buy a gun! wish I could!
Hang on to your pms the US dollar is unstable buy on the dips and hang on. Silver and gold are for long term investing its only been 8 months. Get some more gold next time the price dips I was in the same boat silver heavy. Its not a bad thing but gold helps you retain your sanity as silver fluctuates. Having some gold gives you piece of mind. Might not be a bad idea to get that gun...
Study the subject before you buy anything else. Become knowledgeable. You don't want to put your money into something you don't understand.
Be aware that investing is incredibly boring. Investing is also not the same as trading. If you want to get good at investing, just put aside some money every week/month and slowly build up your stack. Unless you think America isn't going to be stuck in recession-like conditions for the next decade, precious metals are probably a good place to put your money.
Half saving in pm (half gold half silver) and rebalanced when gsr are near low or high The other half in blue chips raising the dividends once a year more than 10 years (a 20% in brazilian, bermuda, european etc to diversify the dollars) See info here http://seekingalpha.com/dashboard/investing_income Ask to me for authors
Hey, I'm a young stacker too. yeah I would hold your silver and gold. its probably the easiest things (and one of the best) you can do to protect/increase your wealth.
One thing you need to understand is that gold and silver are not investments (unless you consider the "commodity face" of silver). When you buy gold and silver, what you are doing is exchanging your dollars (a currency) for another form of currency - it's a little bit like foreign currency trading. So when the price of gold and silver go up, it's not because they have more value - it's because the currency trying to buy the gold or silver is losing its value. If you think that the US dollar is going to lose its value in the next 5 years, then rather than consider it "investing" in gold and silver, consider it to be "saving" in gold and silver. Imagine it more like a gold and silver savings account than a gold and silver investment portfolio. It's not an investment - but it can make you wealthier!
It is a hedge against inflation however I would argue that it is an investment. I don't know of too many other well known commodities or stocks that are both up over 20 percent this year. PMs are both hedge and investment provided you can reach a core position so that you have enough "excess" to bull/sell/trade according to market ebbs and flows, at which point you'd be trading and hopefully making profits. I want to get to the point where I'm relatively comfortable in the amount of pms I own and then dabble in selling / trading. I've already been doing this in my imagination for a while and while not always right I'd definately be ahead if I'd had more capital to buy when I felt was a good time (about 3 weeks ago when gold dropped to 1425) and when was a good time to sell (silver at mid high 40's) in May. Unfortunately I'm slightly new and a late arrival to this game, so for the mean time I'll be buying and holding whatever I get until I surpass my targets. I have already bought a 10 oz. And 5 oz. Silver Bar that are reserved for trading to gold or platinum as soon as I feel I have enough Ag to feel comfortable making a trade.
Tough laws... we were disarmed after Port Arthur. I'm licenced and need a safe for my paintball markers ffs.
