How would you invest $5000 right now?

Amwolf

Robin
You're better off setting it aside right now as cash is king. The next couple of months could turn ugly. If you have debts, use some to pay them down, but keep a buffer. It wouldn't be a bad idea to purchase a good backpack and stock it up with everything that you'd need to take off for a while, whether stateside or abroad.

If you'd like to invest some of it, I'd suggest looking into oil EFTs as they're still relatively low and should climb a lot with the cooler weather quickly approaching.
 

DeWoken

Sparrow
Except when inflation comes along..... and the way the fed is churning out near zero interest 'quantitative easing' cash can lose value quickly.

This is my thinking as well.

If I had 5K extra (after buying everything I needed) I'd buy mostly precious metals, and maybe a safe to put them in. Buying paper gold doesn't send the proper signals to the market, keeping prices artificially suppressed. But holding metals adds complexity to things, unfortunately.

Anyone else used to frequent goldismoney.info back in the day (of the '08 financial crisis)? :D #StackToTheMoon! #BoatingAccident
I watch Kitco charts. Gold went to its highest ever not long ago.
 
This is my thinking as well.

If I had 5K extra (after buying everything I needed) I'd buy mostly precious metals, and maybe a safe to put them in. Buying paper gold doesn't send the proper signals to the market, keeping prices artificially suppressed. But holding metals adds complexity to things, unfortunately.

Anyone else used to frequent goldismoney.info back in the day (of the '08 financial crisis)? :D #StackToTheMoon! #BoatingAccident
I watch Kitco charts. Gold went to its highest ever not long ago.
Yes I remember :) , I also got smaller canadian silver dollars in case of a cash crunch -
only problem is this stuff can be difficult to liquidate (vs ETFs- but of course you have to trust the ETF.. :) ) and often has to be sold under value or with a high commission.
 

redbeard

Hummingbird
Moderator
I'm a big BTC believer, but the biggest knocks would be on the classic scale would be surrounding true durability or its spinoff, what I call dependency. That is, you need several things working in order to access BTC (electricity, internet, a source, etc). This makes it cumbersome and valuable all at the same time (it's not a simpleton form of money).
Right now you need electricity, ineternet, and a source to transact with any form of currency unless of course you have pure hard cash. However most transactions (in all currencies) are handled online these days. If you don't have internet or electricity, BTC can be transmitted via manual techniques like paper wallets or OpenDime.
 

Amwolf

Robin
Except when inflation comes along..... and the way the fed is churning out near zero interest 'quantitative easing' cash can lose value quickly.

Yes, this is true and the USD is rapidly losing its usefulness worldwide. Russia and China are working to rid their dependency on the USD, and I imagine that many of countries will follow suite. Further, the US currently has one of the top 5 worse GDP-to-Debt ratios in the world while Russia has one of the top 5 best. Precious metals would be a wise long-term investment strategy, but in the short-term cash on hand would be beneficial.
 

DeWoken

Sparrow
Yes I remember :) , I also got smaller canadian silver dollars in case of a cash crunch -
only problem is this stuff can be difficult to liquidate (vs ETFs- but of course you have to trust the ETF.. :) ) and often has to be sold under value or with a high commission.

Glad I'm not the only one :squintlol:
I remember posters Twisted Avatar and The Duck.

Yeah that's exactly right about trusting the ETF. There was a saying at GiM that bears repeating: if you don't hold it you don't own it!

Some bible study.
 

LoveBug

Kingfisher
After studying internet marketing a bit over the past month, I’d probably research the hottest selling products/niches, pick some comparable products with good markup and particularly weak competition, set up some funnels with the most current/proven methods, and throw some paid advertising campaigns, hope one sticks and scale
 

typtre

Newbie
Seconded. Everything that makes gold valuable, Bitcoin excels at:


This chart lacks the most important trait of money, which is "intrinsic value", or useability.

Bitcoin has less than low, it's non-existant, while gold is useful.
 

NoMoreTO

Ostrich
I was listening to a podcast and the point was made, what type of money works when the "power goes out"?
> Crypto No
> Digital Dollar - No
>Paper Money - Yes
> Silver/Gold - Yes

It did make me think of the chart.

Also there are still zones where you can't get wifi or a connection. Maybe 5G will "fix" this, but at the moment we aren't there. I'm sure there will be a big push.

Security is an interesting idea. Do you prefer to secure your physical silver somewhere in your house, or do you find the fact that someone someday will hack bitcoin or the Bank Servers a security threat. (or the power goes out)
 

redbeard

Hummingbird
Moderator
I was listening to a podcast and the point was made, what type of money works when the "power goes out"?
> Crypto No
> Digital Dollar - No
>Paper Money - Yes
> Silver/Gold - Yes

It did make me think of the chart.
No electricity is a hurdle for sure. However as we saw during the 2020 coronavirus madness...did we lose power? Outside of California electricity & wifi continued. It's important to consider but not a huge barrier to success in my opinion.
Also there are still zones where you can't get wifi or a connection. Maybe 5G will "fix" this, but at the moment we aren't there. I'm sure there will be a big push.
There's a lot happening with transacting BTC over cell, ham radio, heck even plaintext if you know what you're doing.
 

typtre

Newbie
What do you use the dollar for? Besides toilet paper?

You're shifting the argument here. The chart was Gold/Bitcoin.

The dollar isn't money. It has no intrinsic value. It used to be backed by gold, so it was an IOU on value. But today it is only build on confidence. Or air. But at least you can wipe your behind with it should hyperinflation finally kick in. But Bitcoin can't even do that.
 

redbeard

Hummingbird
Moderator
You're shifting the argument here. The chart was Gold/Bitcoin.

The dollar isn't money. It has no intrinsic value. It used to be backed by gold, so it was an IOU on value. But today it is only build on confidence. Or air. But at least you can wipe your behind with it should hyperinflation finally kick in. But Bitcoin can't even do that.
My point is that the best currencies DON'T have real-world use cases, or else they would be influenced by external supply & demand. For example, you don't store your wealth in crude oil because the demand has seasonality, and the supply depends on whatever the heck OPEC feels like doing. Too much volatility.

Gold was traditionally the hardest money because it doesn't have large industrial use. Additionally, it's extremely rare (when compared to copper, silver, etc.) so its supply is fairly stagnant. Those two factors are what has made it a reliable store of value, meaning not much fluctuation.

Bitcoin takes this to the next level. Lacking real-world use is a feature, not a bug, and means the supply is ONLY handled by the block reward rate, which has been set in stone since the first block was mined.

For a detailed explanation, read the Bitcoin Standard.
 

wojak

Pigeon
Sell call options. I'm about to do just this with some spare $$.

I wouldn't recommend this for someone not very familiar with options trading. Selling call options opens you up to potentially unlimited losses in the event that the trade doesn't go your way. Assume the stock takes off before expiration. You'll have to cover the difference between spot and strike for each of the 100 shares covered by the options contract.

You'd also probably be required to keep a certain amount of money held in a trust account during the life of the contract.
 

Lionheart

Sparrow
If so, then sincere kudos to you. Is this a skill one can learn and if so where are some resources to pick this up. Perhaps drop a data sheet?
Baccarat is easy to learn and practice different systems that are all available for free. Don't be conned by people selling you their "secrets" for hundreds or thousands of dollars. Practice every system you find for free on wizardofodds.com
 
Top