I have $350 to invest, where to put it?

Don't buy PMs with so little money. PMs are a nice LONG term store of value, but they don't work for you (dont pay any interest or dividends) and they are illiquid. Put it in an index fund, dividend fund or stock, or bond fund, and reinvest the interest/dividends. Look into DRIPs (dividend reinvestment plans) and the like. You need to get the money working for you - and PMs don't do that. Sure, you can make capital gains, but it means very little unless you can take those gains and reinvest. Or hell, find some sort of real-world "investment" that can generate some passive income flow. Warren buffet started out buying pinball machines and putting them up in barbershops - not something thats necessarily feasible in this day and age, but if you want a small amount of money to start working for you, thats the sort of thinking needed to really jump-start it.
 
nate895 said:
Since that won't be able to buy a half an ounce of gold, let alone any amount of any real value, I was looking to put it into silver. I am 16, so I am looking for long-term investments, since college is pretty much covered. Is there anything besides silver and other precious metals that is undervalued and will increase or maintain its value as we enter into a recession with temporary deflation before we get massive inflation?

I'd ask my parents, but when I ask them they don't say anything and quickly change the subject.

Edit: Thanks for all the advice!
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You can't by stocks at age 16 unless you have a joint account with a parent. $350 dollars is a good way to start saving...put it in silver bullion at a small amount. By the time you're 18 and learn a little more that should be worth far more and you'll be ready to get down to real business.
 
ThePieSwindler said:
Don't buy PMs with so little money. PMs are a nice LONG term store of value, but they don't work for you (dont pay any interest or dividends) and they are illiquid. Put it in an index fund, dividend fund or stock, or bond fund, and reinvest the interest/dividends. Look into DRIPs (dividend reinvestment plans) and the like. You need to get the money working for you - and PMs don't do that. Sure, you can make capital gains, but it means very little unless you can take those gains and reinvest. Or hell, find some sort of real-world "investment" that can generate some passive income flow. Warren buffet started out buying pinball machines and putting them up in barbershops - not something thats necessarily feasible in this day and age, but if you want a small amount of money to start working for you, thats the sort of thinking needed to really jump-start it.
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Very little you can invest in at his age....PMs are a good way to "begin" investing at a young age, in my opinion. By the time he can really trade and invest that silver is going to be worth 10 an ounce....
 
ThePieSwindler said:
Don't buy PMs with so little money. PMs are a nice LONG term store of value, but they don't work for you (dont pay any interest or dividends) and they are illiquid. Put it in an index fund, dividend fund or stock, or bond fund, and reinvest the interest/dividends. Look into DRIPs (dividend reinvestment plans) and the like. You need to get the money working for you - and PMs don't do that. Sure, you can make capital gains, but it means very little unless you can take those gains and reinvest. Or hell, find some sort of real-world "investment" that can generate some passive income flow. Warren buffet started out buying pinball machines and putting them up in barbershops - not something thats necessarily feasible in this day and age, but if you want a small amount of money to start working for you, thats the sort of thinking needed to really jump-start it.
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I was also considering putting the money to work in some sort of business scheme. I just couldn't think of a business scheme that would cost so little. I guess I will put it into the stock market if I can find a relatively cheap or stable investment with my parents, but the usually avoid the subject. I have tried to invest at least three times (2/3 went sky high after I wanted to get them, the other has stayed roughly equal) in the stock market with my parents, but they just ignored it and I spent it on the latest video game/book mostly.
 
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123tim said:
Ahh.....Now we're all wondering what it was! :)
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I challenged him to pay off my student loan in four years by giving him 50% of the debt value. He explained in the PM that the return rate wouldn't be proportional if given tens of thousands of dollars, so I deleted it since it came off overly-assholish anyways.
 
Kludge said:
I challenged him to pay off my student loan in four years by giving him 50% of the debt value. He explained in the PM that the return rate wouldn't be proportional if given tens of thousands of dollars, so I deleted it since it came off overly-assholish anyways.
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:) I guess that it all comes out even in the long run.....You gave excellent advice on page two.
 
Is there any particular stocks I should look at, or would something like Kludge suggested work? My hope was to get enough money to eventually help finance the down payment on my first home, so 50 years isn't exactly my time frame, I'd hope to get into my own home by age 30, so apx. 14 years.
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There is money to be made above the market averages investing in individual stocks, but you have to be willing to invest the time/research into it. If that doesn't sound interesting to you, the best bet would probably be index funds. I'd look at a basket of diversified and liquid ETFs with the lowest expense ratios you can find.

In 14 years, the dollar amount you can receive for gold or silver might be a lot higher if the worth of paper money goes kaput, but the value of what that gold or silver buys will not have changed much. The ounce of gold you buy today will purchase roughly the same amount of goods that an ounce of gold in 14 years from now will. In other words, it's not going to get you a down payment on a house. Of course, if the stock market plunges with a magnitude comparable to the Great Depression, it's possible an investment in the stock market won't have gained anything after 14 years either. Historically, over long time periods, stocks have had the highest rate of return though.
 
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Knighted said:
There is money to be made above the market averages investing in individual stocks, but you have to be willing to invest the time/research into it. If that doesn't sound interesting to you, the best bet would probably be index funds. I'd look at a basket of diversified and liquid ETFs with the lowest expense ratios you can find.

In 14 years, the dollar amount you can receive for gold or silver might be a lot higher if the worth of paper money goes kaput, but the value of what that gold or silver buys will not have changed much. The ounce of gold you buy today will purchase roughly the same amount of goods that an ounce of gold in 14 years from now will. In other words, it's not going to get you a down payment on a house.
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That is why I was thinking about silver. Silver seems to be volatile, and a good investor can make money off of silver (I found some 2.31-3.05 over spot, in stock). I'll price everything out, see what I can afford, and what my possible returns are on each investment over 14 years, and which one maximizes money over the years, without too much risk.
 
I too am 16 and I took the money I made from work and bought silver. I'm planning on keeping it until I can get some capital gains and find something to invest in after I'm 18. I'm not sure I would like to give partial control of my finances. I just don't feel comfortable with anyone in control of my money.
 
I agree with the person who said that $350 is too little to invest in anything. First thing is that you want to have an emergency fund of a few thousand dollars to pay for any unexpected expenses such as medical bills, crashing your car, etc. This money should be mostly in a savings account. After that, then you can start investing.
 
Gold just popped over $800 / ounce, you may be able to buy 1/10 oz or 1/4 oz of gold if shipping & handling fees aren't too high.
 
First off, I gotta say you're 10 steps ahead of the game investing so early. Good for you.

I say with every two or three dollars you put into the stock market, you should put one dollar in Gold. Traditionally (but not always) whenever the stock market goes down, gold goes up, and vice versa. Anybody who bought a lot of Gold in before Bush's Presidency has enough money to buy their own island. So if your stocks tank, your losses will be contained by the increase Gold's value. I'd start with a mutual fund of some sort, or a Roth IRA, and then with one-third of your money buy 1/10 oz. Gold coins from the Northwest Territorial Mint or some other trusted Gold dealer. Continue this pattern for life, and your wealth will be secure.
 
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