We are launching a new series of articles to help people get starting with investing. The idea is “How would we at Investor in the Family invest if we were getting started in investing today?” We will look at this question from different angles, based on different budgets. Remember, you are responsible for your own investments and decisions, everything we are sharing are our opinions and not to be seen as recommendations. Let’s get started!
If we had $1000…
- ~$525 for 20 1 oz Silver American Eagle coins
- ~$250 in Glu Mobile (GLUU)
- ~$200 in Attunity (ATTU)
- Hold the rest of the money to invest later
The stock market is at all-time highs and gold and silver have seen a lot of gains lately. As a result, this is not the best time to be entering the market, BUT that doesn’t mean it should be avoided all together.
We believe investors should have a strong foundation in physical gold and silver coins. We aim to invest anywhere from 10-20% of our total investing budget into physical gold and silver. The reason we would spend 50% of the $1000 on silver now is twofold. First, most sellers of gold and silver start giving price breaks at 20 coins, that is also the number of coins the U.S. Mint puts in one container. More importantly, buying 20 oz at one time will help make the most of shipping charges. For more details on how to buy, see “How To Buy Gold And Silver.”
For the stocks, we have mentioned GLUU and ATTU. GLUU is a mobile gaming company that has been a big winner so far and we are still expecting at least 70% upside from here. ATTU is a software company that has already seen a lot of upside but could still see another 30% growth from current levels. For more details on how to buy stocks, see “How To Buy Stock.” (With a small budget like $1000, we wold run into issues due to the fact that some online brokers have account minimums. TradeKing does not and therefore would be our choice if we were in this situation.)
We would probably hold the leftover money to buy more of these same items if prices drop in the next few months, something we believe has a good possibility of happening.
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