Hello, all... I am back with a new plan. I am 13, and want to invest in penny stocks. I had posted a while back about investing in silver... I have changed my mind, however. Here is my new post: http://forums.silverstackers.com/message-961148.html#p961148 Is this a good plan to save up for gold/silver/precious metals? Why? thanks!
If it's penny stocks and you're 13, you're simply going to be hoping to get lucky. Be prepared to lose everything, and good luck!
Don't buy penny stocks. At your age don't buy stocks at all. Even seasoned buyers get taken way to much and sucked in and chewed up. Your emotions will run high and you'll make bad decisions until all your money is gone. Seriously don't do it. Some day when you have more money you can throw away you can start learning slowly until you get the hang of it. Maybe if you really want to get in on something buy some beaten up oil stocks and hang on for like very long term. At your age though, being so young and having a ton of time left in your life you just want to be building wealth. Normally if interest rates weren't so low that would include just throwing it in a high yield savings account. And keep adding to it and watching it grow. But interest rates are horrid these days. And since you're on precious metals forum, don't have enough money to diversify anyway, and have decades to hold and build up wealth, I'd say just stick to buying silver.. Wish I did at your age. Your silver will be something you shouldn't touch or sell for decades. Geez even in 30 years you'll only be 43. Imagine silver in 30 years and how much harder to get and rare it will be. Will be insanely expensive. And you'll get to hold it and admire it in the mean time. Maybe sell some to buy a house or something. Starting so soon by the time you get out of college you'll be so far ahead of anyone else it won't be funny.
Really? Look at the last 30 years. For a solid 20 years silver did practically NOTHING! And if you held out for 30 years you'd tripled your money (but much less due to inflation). Silver is demonstrably a crap investment unless you can time the buy and sell just right. Who says it's not going to do the same again? It's a pure gamble not too dissimilar to stocks, except that the price isn't going to drop to zero. And compared to stocks there isn't close to the upside potential. MusicalStacker should probably take the $500 and invest in himself. See if there is a business he can kickstart etc. But we've been through all this before: http://forums.silverstackers.com/topic-77109-is-now-the-time-to-start.html
I think the point that in 30 years silver will be much rarer is pretty spot on though. When the first companies begin to store up on silver due to less production and becoming more expensive we'll see a good run on silver. But when a major solar panel company or similar finds they can't get it at all then the price would go insane.
In no way shape or form can you compare the last 30 years to the next. We live in a totally different world now than back then. Shoot just the amount of people alone on the planet is a giant difference. Just try to keep up with all the new people using it up in 30 years. Silver use has skyrocketed since the last 30 years. Yes ok so has massive amounts of silver extraction and technology to get it out and has kept the price reasonable. But all that says is we are closer to it being far far harder to get out of the ground with each year of massive extracting amounts. China still has a long way to go and india also has insane growth ahead of them. An amount that will put to shame any past growth. And tech and industry is using more silver than ever every year. This kid has a huge opportunity that we didn't in the time he's growing up in in regards to silver. I firmly believe he'll see a boom in his life time like no other for silver. Besides that it's a dang good savings plan at the very least except with a huge possible upside. As I said he needs to accumulate wealth, save anything he can, now is not the time to risk it at his age. Build up wealth so it's ready for him later in life. But obviously he can decide to sell at any of those huge peaks. Or at least sell some. There were many points on that graph where 2 times or even 10 times the money could have been made in much shorter spans than 30 years. It's fine to pull your profit when you see opportunity.
Yes, but you must also know the background story why it didn't do nothing and why things are about to change. I feel that silver is a sure thing, but it won't happen overnight.
Good on you for wanting to make money rather than spend it like most kids your age would be. Try paper (pretend) trading for a year and see how you go. Make decisions and keep track of them in a spreadsheet. Learn everything you can about stocks and trading - it will be useful knowledge for your whole life. Perhaps over time you will realize what type of investing or trading suits you.
You can always buy gold from the Perth Mint who will store it for you. https://www.perthmint.com/storage Slowly build up your account and sell when it spikes. I too am looking for a Penny Stock though. Why not put 20% into this as it is basically gambling but you could be involved in a once in a lifetime spike if the global economy tanks. If you are always saving you will go far.
It doesn't matter silver pennystocks dollars whatever, it's not the product that draws the outcome, it's your trading decisions, whether you're among the first or last in the buying/selling order. SilverDJ is right from this viewpoint. In terms of purchasing power, it HAS to be. An ounce stockpiled implies an ounce thrown for sale later. The bigger the stockpile of something, the less likely it is that the value of the stockpiled will increase.
Research uranium fundamentals. There will be a violent upswing in spot price there somewhere between now and 2018. Its essential and currently hated by most investors. Thats where im parking my truck.. you need low cost projects. Uranium upswing is a when, not if scenario. Asx im bullish BKY and AEE for uranium.
Have wondered this. If we are all stockpiling Gold & Silver who will we sell to when the price spikes (as we all hope it will). Want to sell when people are talking crazy peaks ($5,000 US). I honestly think we will see this in the next couple of years. Just need to get out while there is still greed in the market.
There's also the chance in the next 30 that someone will change housing code or something similar to require solar panels or solar hot water be installed - even if this is only on NEW homes. That will create a huge demand, bringing down solar system pricing which would also in turn create demand. I am perplexed by someone who suggests that any commodity or stock past performance is somehow indicative of the future.
