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 $10,000…
- ~$2500 for 100 1 oz Silver American Eagle coins
- ~$500 for three 1/10 oz Gold American Eagle coins
- ~$2500 in Glu Mobile (GLUU)
- ~$1000 in Attunity (ATTU)
- ~$1000 in Amtech Systems (ASYS)
- ~$750 in Pixelworks (PXLW)
- 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 so much of the $10,000 on gold and silver now is twofold. First, most sellers of silver start giving their biggest price breaks at 100 coins. More importantly, buying 100 oz at one time will help make the most of shipping charges. We believe that today’s prices for gold and silver are a good time to begin buying and offer great upside potential in coming years. Gold and silver are conservative investments that have stood the test of time, we would want to lay this foundation early. For more details on how to buy, see “How To Buy Gold And Silver.”
For the stocks, we have mentioned GLUU, ATTU, ASYS, and PXLW. 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. ASYS is a solar energy company that has grown a lot in the last year and could get close to $20, a 60% increase from the current price. PXLW could be considered a riskier stock, but they have just announced an important relationship with Apple that could provide helpful catalysts for the stock price in the near future.
For more details on how to buy stocks, see “How To Buy Stock.” A healthy, well balanced portfolio will typically have around 25 different stocks in it, so why invest in so few in this portfolio? If we had only $10,000 to invest, we would want to be more aggressive. To be overly conservative with such a small amount of money may reduce risks, but it would also reduce potential rewards too much, in our opinion.
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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