Question for small amount of money

[AJ Antimony]

Hey all, just looking for some input here..

My nephew is starting college next fall and has i think he said $9000 or $10,000 in the bank from savings/employment. He asked me how much of that he should turn into gold/silver and I wasn't sure what a good number would be.

Any thoughts? Half of that? Most of it? Definitely not all so he has some spending money available...

 

[ILUVRP]

I will throw this in.

With the markups on buying coins or PM bars i would be very careful buying gold/silver to hold.

He will end up paying 10-20 % above spot price and when he sells he will more than likley get spot.

This means he would need for gold to go to around $1100/oz to break even.

Unless he is in for the long haul. More than 5 yrs

If it were my son i would open a account with a discount broker and buy 100 shares of DGP , this is a double gold mover ( up and down ).

charges in/out would be under $10 each way. With this buy if GOLD like above went up to $1100/oz ( 15% ) instead of being even he would be up about 30% on his buy.

No worry about storage and security.

JMHO . Good luck

 

[Bruno]

Hey all, just looking for some input here..

My nephew is starting college next fall and has i think he said $9000 or $10,000 in the bank from savings/employment. He asked me how much of that he should turn into gold/silver and I wasn't sure what a good number would be.

Any thoughts? Half of that? Most of it? Definitely not all so he has some spending money available...

Have him read this thread and go to some of the forums listed in it to educate himself if he is serious about purchasing PMs. He'll learn a lot, enjoy it more, and make better decisions.

http://www.ronpaulforums.com/showthread.php?t=180889&highlight=buying+gold

 

[AJ Antimony]

I will throw this in.

With the markups on buying coins or PM bars i would be very careful buying gold/silver to hold.

He will end up paying 10-20 % above spot price and when he sells he will more than likley get spot.

This means he would need for gold to go to around $1100/oz to break even.

Unless he is in for the long haul. More than 5 yrs

If it were my son i would open a account with a discount broker and buy 100 shares of DGP , this is a double gold mover ( up and down ).

charges in/out would be under $10 each way. With this buy if GOLD like above went up to $1100/oz ( 15% ) instead of being even he would be up about 30% on his buy.

No worry about storage and security.

JMHO . Good luck

Yes he's in it for the long haul... more so trying to protect his savings rather than make money from them.

 

[AJ Antimony]

Have him read this thread and go to some of the forums listed in it to educate himself if he is serious about purchasing PMs. He'll learn a lot, enjoy it more, and make better decisions.

http://www.ronpaulforums.com/showthread.php?t=180889&highlight=buying+gold

Thank you! Just emailed that

 

[AJ Antimony]

From what I read so far, I haven't seen anything suggesting how much of his cash should be turned into metal...

 

[bander87]

Firstly, figure out college expenses first, and all other expenses. the money left over is the money he has to work with.

I would do whatever you feel comfortable. It might be 10%, or 50%

 

[AJ Antimony]

Firstly, figure out college expenses first, and all other expenses. the money left over is the money he has to work with.

I would do whatever you feel comfortable. It might be 10%, or 50%

Hmmm and also, does it matter how many coins he buys with his money? What I mean is, let's say he wants to spend $5000 on coins. He could either buy 5 1 oz. gold coins, or hundreds of silver eagles. I'm assuming the hundreds of eagles would be better so if some are lost/stolen you won't lose all your money but I was wondering what anyone's opinion is of that.

 

[Bruno]

Hmmm and also, does it matter how many coins he buys with his money? What I mean is, let's say he wants to spend $5000 on coins. He could either buy 5 1 oz. gold coins, or hundreds of silver eagles. I'm assuming the hundreds of eagles would be better so if some are lost/stolen you won't lose all your money but I was wondering what anyone's opinion is of that.

There are a lot of opinions on that question, ranging from 100% gold if you have that much for PM purchasing to 100% silver because it is more undervalued. As with anything, usually diversification is best. With $5000, he might consider three to four 1 oz. gold coins, with the rest split between silver rounds, junk silver, 5 & 10 oz. silver bars.

disclaimer - I have read and learned from folks here, as well as other articles and forums. I'm no expert, so please take this advice with a grain of salt and he should do additional research on his own so he feels more comfortable with his own choices on spending his savings.

 

[AJ Antimony]

disclaimer - I have read and learned from folks here, as well as other articles and forums. I'm no expert, so please take this advice with a grain of salt and he should do additional research on his own so he feels more comfortable with his own choices on spending his savings.

Oh, of course. Thank you for the input.

 

[Zippyjuan]

It sounds like since he is just starting school that he will be needing this money over the next few years. You want to be extremely conservative and look at investments with minimum risk. Stocks or precious metals are not safe investments in the short term. You probably want to stick with things like CDs and savings accounts for that money. I would not put in anything he will need for school. Just my opinion. You want to be sure of a return of your principal during that time.

 

[Allen72289]

Open a scottrade account and start trading exchange traded funds, if you're lucky you'll more than double that 10 grand by fall.

 

[eric_cartman]

half is good... just turn into gold/silver whatever he doesn't plan on spending any time soon. So if it's money he is not going to need for the next 5 years, then that is the amount.

 

[bander87]

Hmmm and also, does it matter how many coins he buys with his money? What I mean is, let's say he wants to spend $5000 on coins. He could either buy 5 1 oz. gold coins, or hundreds of silver eagles. I'm assuming the hundreds of eagles would be better so if some are lost/stolen you won't lose all your money but I was wondering what anyone's opinion is of that.

I personally prefer silver to gold. Do some research and get your own feel. Buying over a periodic time instead of all at once will help you get to know what you want. Everybody is different. Some people might by a 1 ounce gold coin, but I wouldn't feel comfortable in doing that. Some people might like a lot of junk silver, some people like American Eagles, and so forth.

$5000 I think is a lot to buy all at once. If you spend it all at once on metals, and wanted more silver or gold, or bought too many American Eagles and realized you could have bought more rounds instead, then it's tough luck until you get more money or sell.

I would strongly advice you don't buy old stuff.
And keep in mind, if you buy a 1 ounce gold coin or 100oz silver brick, you have to sell it back all at once, so keep that in mind.

Keep in mind this is his money

 

[AJ Antimony]

I personally prefer silver to gold. Do some research and get your own feel. Buying over a periodic time instead of all at once will help you get to know what you want. Everybody is different. Some people might by a 1 ounce gold coin, but I wouldn't feel comfortable in doing that. Some people might like a lot of junk silver, some people like American Eagles, and so forth.

$5000 I think is a lot to buy all at once. If you spend it all at once on metals, and wanted more silver or gold, or bought too many American Eagles and realized you could have bought more rounds instead, then it's tough luck until you get more money or sell.

I would strongly advice you don't buy old stuff.
And keep in mind, if you buy a 1 ounce gold coin or 100oz silver brick, you have to sell it back all at once, so keep that in mind.

Keep in mind this is his money

What do you mean 'old stuff'?

 

[Archie]

I gotta be brutally honest with his Bankroll he could do some serious demage to the sport Books , Why spend $1000+ of your own money for an oz of Gold when you could easily win some good money betting mixed sports then with the profits buy the silver and gold all ya want not even dipping into yer own money. U could even pull of a Parlay of say 4-6 gamer and with a small $2 wager nail anywhere from $50-80-$180 bucks on a low 2$ or $3 wager. I know this sounds like "wreckless gambling" but its not at all if you do your homework on keying a couple games to handicap the he'll out of the games. What ever ya make of my advice its no skin off my nose as I'm just being honest in saying buy gold yes but try to do it by handicapping the spot price so it doesn't cost you the "high price" . If ya want more advice and good "picks" PM me Ill be more then Happy to throw ya some "value plays" and some standard picks , If ya win a good amount all I'd want is a case a beer or a nice silver maple or eagle hehe. Usually I'm about 70% accurate on average and my worst days I'm 50% accurate but I have been over 80% accurate a bunch of times. Nothing sweeter then laying a $2 wager on some "value plays" on a 4 game parlay that pays you anywhere from $150-$250 payout and then buying some silver maples with the profits and keeping your money. The one thing that can screw you over is "Greed" its better to win a little then win nothing is the lesson I'm trying to teach myself but the gambler in me says "Go big or go home" LOL . sometimes you take for granted the ability to turn $2 into $4 and go chasing the Big pots

Anyway just my opinion it don't have to be "sports bets" it could be anything you could use to help handicap the Gold price with a small initial investment I just use sports handicapping as a way to handicap PM and other pesky purchases.

Good luck with whatever he and you choose to do , Cheers to PM's looking so sexy we pay up the kazzoo in premiums for them LOL

 

[bander87]

What do you mean 'old stuff'?

Rare and historical coins. Anything that's worth way more than it's metal value.

 

[homah]

I gotta be brutally honest with his Bankroll he could do some serious demage to the sport Books , Why spend $1000+ of your own money for an oz of Gold when you could easily win some good money betting mixed sports then with the profits buy the silver and gold all ya want not even dipping into yer own money. U could even pull of a Parlay of say 4-6 gamer and with a small $2 wager nail anywhere from $50-80-$180 bucks on a low 2$ or $3 wager. I know this sounds like "wreckless gambling" but its not at all if you do your homework on keying a couple games to handicap the he'll out of the games. What ever ya make of my advice its no skin off my nose as I'm just being honest in saying buy gold yes but try to do it by handicapping the spot price so it doesn't cost you the "high price" . If ya want more advice and good "picks" PM me Ill be more then Happy to throw ya some "value plays" and some standard picks , If ya win a good amount all I'd want is a case a beer or a nice silver maple or eagle hehe. Usually I'm about 70% accurate on average and my worst days I'm 50% accurate but I have been over 80% accurate a bunch of times. Nothing sweeter then laying a $2 wager on some "value plays" on a 4 game parlay that pays you anywhere from $150-$250 payout and then buying some silver maples with the profits and keeping your money. The one thing that can screw you over is "Greed" its better to win a little then win nothing is the lesson I'm trying to teach myself but the gambler in me says "Go big or go home" LOL . sometimes you take for granted the ability to turn $2 into $4 and go chasing the Big pots

Anyway just my opinion it don't have to be "sports bets" it could be anything you could use to help handicap the Gold price with a small initial investment I just use sports handicapping as a way to handicap PM and other pesky purchases.

Good luck with whatever he and you choose to do , Cheers to PM's looking so sexy we pay up the kazzoo in premiums for them LOL

Sorry, but no one can pick winners at a 70% clip. If you could do that, you would be rich like Biff from 1985-A Back to the Future by now. That being said, of course sports betting is beatable with solid handicapping, but it's not easy at all and his profits with a sub-10k bankroll would be small, assuming he is sizing his bets properly.

If he were to ever consider going in this direction, he would be better off taking advantage of all the poker/casino/sports sign up bonuses available. A lot of these are quite low risk (not as much as they were in the good ole days of 3-7 years ago, though) if you do a little research before getting started.

 

[Archie]

Homah it all depends on what sports ya bet on and so forth, I not charging a "fee promising" millions I'm just stated the facts that I'm usually on average 70% accurate my problem is that I enjoy parlays way to much LOL , I only play with a small bankroll but I can honestly say that when I take my time handicapping soccer especially ,It always helps me pay for things be it PM's clothes pub snacks or electronics. I only suggested finding something to help handicap the pm spot price if someone knows a better easier way then handicapping sports Thats fine aswell. I never told anyone that doing sports capping will make them filthy Rich in 24 hours I'm just suggested a method where you can cut back on your purchases if ya take some time and handicapp some games. And in champions league soccer I nailed 10 out of 10 games , I bet small ,but say I did put 20$ or even $100 on a 10 game parlay I would of nailed over 30K, anything Is possible if ya got the guts for it . I play for fun and use small bets to do help cover some of the cost of things but who's to say that someone cant get "Rich" from it people can and Have , and you don't even need to be 50% accurate all ya need is one big upset to happen which in soccer happens alot.

Anyway what sports do you cap ? Do ya play parlays or just play conservative single bets? I love hockey,NFL and even the old college games but what brings me bread and lots of Butter is EPL,Laliga,Serie a and ligue 1 even. If I just stuck to soccer and NFL "Keys" I would of done very well but ya know how it is ya like to sprinkle some action on NHL and College bucket and oops there goes that lucrative parlay LOL !!!

Anyway great to know there is some cappers on these forums BOL buddy and "may the winners be yours"

 

[brandon]

If he's just starting school he is going to need the money to spend. He will need to pay for food, rent, books, tuition, beer, weed, etc for the next 4 years. I would say he should just keep most of it as cash in a checking account. Maybe buy 1oz of gold.