How would you invest $5000 right now?

[typtre]

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.

Gold was once "set in stone" at $35/oz after Roosevelt took a dump on the entire American people forcing them to sell all their gold at $25/oz. Then for no reason at all (not really ) the Americans decided the dollar was no longer gonna be backed by gold. But gold is still recognized as money around the entire world.

If the almighty Government decides Bitcoin is now illegal, what are you gonna do with your censored Comcast monopoly Internet-backed currency at Walmart when Walmart is not allowed to transact in Bitcoin? The cronies in the EU is now discussing banning Bitcoin because a digital currency needs to be "safe" and "protected". Agenda 2030 has only room for one digital currency and it will be centrally planned and backed by nothing but force.

Will you be able to VPN and Tor transact Bitcoin to your friendly potato-farming farmer because you want food and he really wants Bitcoin so that he can purchase a new tractor from the Bitcoin Black Market?

I understand gold can be confiscated and outlawed, but it's much harder to control and track under the Unification Board-dystopia fast approaching.

Does the Bitcoin Standard cover this?

 

[Sandstorm]

Apparently Goodrx is a potential solid investment

 

[Easy_C]

Afro-business.

the commodities market and food production have taken enormous damage that the general public and even most of Wall Street haven’t realized yet (most of them are rich kids with an understanding of agriculture that is rudimentary at best). Furthermore there’s some indication that insiders are investing here.

Commodity staple prices will rise dramatically due to shortages.

 

[Easy_C]

Agri-business.

the commodities market and food production have taken enormous damage that the general public and even most of Wall Street haven’t realized yet (most of them are rich kids with an understanding of agriculture that is rudimentary at best). Furthermore there’s some indication that insiders are investing here.

Commodity staple prices will rise dramatically due to shortages.

 

[Mikeyd03]

To hold for a decade+? Bitcoin. And it’s not even close.

 

[merc]

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.

I'm not an expert on options but I'm pretty sure that's not true. If a trade doesn't go your way and you sell to close your option your losses only consist of the difference in premium you paid per share for the 100 shares on the contract. In other words, the total amount of risk you are exposing yourself to is the total price of the contract. Selling to open is a different story.

 

[wojak]

I'm not an expert on options but I'm pretty sure that's not true. If a trade doesn't go your way and you sell to close your option your losses only consist of the difference in premium you paid per share for the 100 shares on the contract. In other words, the total amount of risk you are exposing yourself to is the total price of the contract. Selling to open is a different story.

In order to sell to close a call option, don't you need to have already purchased that same call option at some point in the past? How can you sell to close a position you haven't yet opened?

Just going off of the original post (which doesn't have too much info) it seems as though they were referring to "selling to open" call options on stocks they felt bearish about. In this case, the buyer of that call option would be entitled to purchase 100 shares from you at a predetermined strike price at some point in the future. Meaning you would be obligated to sell to them at that price should they exercise the contract. If the stock jumped up 1000% over the course of the contract, you would have to buy those 100 shares up at the higher price (assuming you didn't already own them) and sell them for pennies on the dollar to the buyer of the option.

I'm no expert either, so let's keep going if there's a misunderstanding on my end. I have an interest in learning more about these things.

 

[merc]

In order to sell to close a call option, don't you need to have already purchased that same call option at some point in the past? How can you sell to close a position you haven't yet opened?

Just going off of the original post (which doesn't have too much info) it seems as though they were referring to "selling to open" call options on stocks they felt bearish about. In this case, the buyer of that call option would be entitled to purchase 100 shares from you at a predetermined strike price at some point in the future. Meaning you would be obligated to sell to them at that price should they exercise the contract. If the stock jumped up 1000% over the course of the contract, you would have to buy those 100 shares up at the higher price (assuming you didn't already own them) and sell them for pennies on the dollar to the buyer of the option.

I'm no expert either, so let's keep going if there's a misunderstanding on my end. I have an interest in learning more about these things.

I think we both had a different understanding on what the OP (talking about going into options) was talking about. I thought he just wanted to buy and sell to close options that already existed on the market (ie. not writing them). If he just bought a call option on the market and then sold it right after, he's not obligated to purchase 100 shares if the person he sold it to wanted to exercise that option, therefore his position is closed and he keeps the profit or loss. I only really dabble in selling to close call options.

Either way - what you were trying to get at is that yes he should definitely do research before going into options. The losses can be catastrophic if you don't know what you're doing, but you can definitely limit your risk while being able to use leverage.

 

[JackieG]

I would buy something wholesale & sell it locally on Facebook.
I have done this successfully for 3 years now.
My latest acquisition is 12 volt diesel air heaters.
I buy them for $110US, get them over the border & landed on my doorstep, taxes, fees, shipping all in @ $160.00 CDN ea. all in & sell for $385-$425.00
Usually about 5-7 week.

 

[redbeard]

I would buy something wholesale & sell it locally on Facebook.
I have done this successfully for 3 years now.
My latest acquisition is 12 volt diesel air heaters.
I buy them for $110US, get them over the border & landed on my doorstep, taxes, fees, shipping all in @ $160.00 CDN ea. all in & sell for $385-$425.00
Usually about 5-7 week.

What are some other items we could flip like that? I'm not sure heaters are suitable for my locale.

 

[kel]

It's not facebook, but there's the guy - kinda famous - who recommends buying and flipping (shipping) pallets.

 

[Blade Runner]

To hold for a decade+? Bitcoin. And it’s not even close.

I was just going to say exactly this. BTC and it ain't close. Period.

 

[JackieG]

What are some other items we could flip like that? I'm not sure heaters are suitable for my locale.

I also sold stainless distillers, cell phone boosters, LED lights, grain grinders. I found a lot of people would rather pay more if they could physically look at it & could pick it up instantly.

 

[Douglas Quaid]

Put it in an IRA. The max is $6000/year, so add another $1000.

 

[The Resilient]

Put it in an IRA. The max is $6000/year, so add another $1000.

Roth or otherwise ?

 

[Kona]

Weed stocks.

Aloha!

 

[Douglas Quaid]

Roth or otherwise ?

Depends on when you want to pay taxes. With a Roth, you pay taxes now but it grows tax free and the withdrawals will be tax free. You can also withdraw the principal at any time penalty free.

 

[realtylerparker]

I have US $5000 that I don't plan on using soon. Any ideas as to how I could invest this money now?

One Idea
I was considering purchasing some expensive software and use it to provide a service on Fiverr. If the software is expensive, I'll have little competition. Of course, I'd make sure the software has a money back guarantee in case I can't make any money on Fiverr. I don't know which software to buy though.


Thank you guys

Depending on your regular income I would first save for an emergency fund. Then I would pay off car/credit card/small account debt first, after that pay off my home or save up for a home down payment. Chunk the rest in retirement and treat it like it never happened.

 

[Hanibal]

Can I suggest starting a business - or at least trying. Even if you fail - 5k down is an education in itself. You would get more value from 5k starting a business - than most MBAs. 5k is not too much to lose - but could teach you so much

 

[JohnnySmith]

Not sure.

freelancing?