I'm going to college soon and was thinking of investing a good size of my cash balances in some investments(You know, expand the productive structure :P), and was wondering what to get. I already have some money in gold and silver ,and was thinking about putting some more in it, but not all. The survival type things like canned food, guns, and stuff really aren't what I'm looking for here.Essentially I'm looking at it like a businessman investing in the future of stagflation.
Based on my lookings around on dem internetz and what sane people are doing (Jim Rogers, Peter Schiff, etc), foreign stocks, foreign currencies, and commodities seem pretty good right now. However, while gold is somewhat easy to buy, I'm not an expert in anything listed above. I looked around on Peter Schiff's website (don't know how much it costs though or if it is good-anyone?) and Jim Rogers Commodities Index to start my search. Does anyone have good stocks/currencies to invest in? Links would be great. Since I'll be in college unless they are with someone who takes care of them I can't trade/sell them super quick (No short selling the Reading Railroad I'm afraid) I've saved an asston and aiming for the field of a couple thousands (max 5000).
Any information/opinions/experiences/links would be great, we are in some interesting times ahead and I'd like to come out on top (or die trying!!!)
Any savvy investors out there :)
Commodities are the safest and best bet. Many agricultural commodities look attractive at this level, sugar especially. Best way to invest in agriculture would probably be through RJA, which is Jim Roger's index. Oil also looks ok. It may go down in the short or intermediate term but is pretty much a for sure bet long term. USO or OIL are good ways to invest in oil.
Equities around the world right now are, in my opinion, a bad investment. However, a lot of silver mines have a lot of upside potential. Hecla Mining (HL) is my favorite of the silver mines, however SLW and maybe SVM look decent as well. Generally, the rule for mines is a 3 percent gain for every 1 percent gain in the metal. So, theoretically, if the price of silver doubles then you will have a 300 percent profit. However, mines have their own set of problems and simply owning the gold or silver is a safer bet, but if you're looking for a little more return then owning the mines is a good play. A riskier but potentially HUGE return is ECU Silver Mining (ECU.T) and Explor Resources Inc. (EXS.V). I must say though, I really really like HL and some think it could even go to 20 within the next year or two (it is at 2.85 now).
In terms of currencies, almost all are bad. Relatively speaking though, the singapore dollar looks decent and resource based economies such as Australia and New Zealand should have alright currencies. You could play these through the ETF, such as FXA for the Australian dollar.
You should probably take all of this with a grain of salt. I am not a professional. I do however, subscribe to the Gloom, Boom, and Doom report which is where I get a lot of my information from and it has not let me down.
There are probably many savy investors on this board but I doubt any would be willing to give away their secrets. Scour the mises.org articles, blogs, and forums for some ideas to point you in the right direction.
EuroPacific will only manage portfolios in excess of 50k. With only 5k, I'd just buy lots of silver coins as cheap as possible. If you don't mind risking it, roll the dice and see what happens.
Here's a few links that may interest you?
HSBC
Kitco
BOM
EWI
StockCharts.com
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Thanks for the links guys, and thanks for the 50,000 thing. A wee bit outta my range. I was thinking about doing increases in silver and gold, its just that I was also looking for diversifying my chips a little bit.
What seems like something profitable would be currencies, because even if all currencies are inflating I feel as though the dollar will depreciate the most, making my returns once converted worthwhile.
I really like commodities and precious metals. Transocean (NYSE: RIG) has been a great investment for me. Inflation will drive up the cost for oil and I would assume that demand for oil would rise barring price increases. So far so good.
My safe bet has been in gold. It has performed spectacularly, but it's held steady and it'll start rising once people realize that the dollar is worthless. I mean just look at the history of the price of gold: amazing. I'm a second-year college student and I don't have much money so I couldn't buy physical gold. Rather, I bought into an ETF.
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bbnet: EuroPacific will only manage portfolios in excess of 50k. With only 5k, I'd just buy lots of silver coins as cheap as possible. If you don't mind risking it, roll the dice and see what happens.
Why silver over gold coins? What about platinum?
Are you concerned mainly about the possible confiscation of gold?
Silver, at least here in Australia, is being sold at a huge markup/premium over the base metal price. I'm not a commodities investor. Does anyone have any idea why that might be? I asked the Australian Bullion Company why and there response was "Yes there is a high premium on the 1oz silver coin". As you can see the question was not answered. Gold and Platinum coins do only seem to be sold at a much smaller premium. Gold here in Australia has draconian measures built into the Australian Banking Act (basically confiscation at a government determined price!). Silver and Platinum are not written into the Act (as yet...).
Yes there is a high premium on the 1oz silver coin