Got some money...invest it?

i never meant for this to get out of hand like this, i was just offering a suggestion of an alternative investment to putting it in to an ISA or similar

of course the OP should do his own research and i apologize if i have taken the thread slightly off topic by this banter
 
Pinkribbonscars said:
But... in 1980 the prices had risen and risen! Cut off the graph from 1980 onwards and to the investors at the time it looks exactly the same as the graph now! The people buying at the start of this spike will have made a killing - but the graph clearly shows that the prices will almost certainly crash in the mid to near future.
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Which is why I said the smart guys would've known what to do and perhaps even when.

It hit a massive surge because the US loaned 2 Billion worth of silver to people in return for paper silver but when the contract was up, they had fewer silver than was actually booked in. Causing it to spike on the US market. It also wasn't the whole the 80s, it was that one year. Someone didn't pay back their silver loan basically. :p
 
Definitely something cash based.

Stocks and shares, either through a S&S ISA or actual investments, are something which really require you to be willing to leave the money there for at least 3 years, preferably longer. The market goes up almost invariably when you consider time scales of decades but at the moment you're young and likely to want to put that money towards something in the next few years, like university or a car or as security for your first rented place (its not going to make a dent in a mortgage deposit unfortunately). Stuff like precious metals are also things you only really want to consider when you have the time to wait and the money to lose. Sure, you can make a killing on them but they can also drop like a stone.

You aren't in a position where you can afford or want to see your money vanish because the price of cheese in Venezuela causes a crash in the market or the like. As such you should stick with something cash based, like a cash ISA, one which you can get your hands on either instantly or perhaps once a year.

Obviously the faster you can access your money the less interest you'll get. Instant access ISAs are not as good as they were a few years ago (nothing is!) but they still do much better than your typical bank account. I'm sure other banks do such things but I have a Yorkshire Building Society account which allows me to access my money for 1 month a year, during which time I can move as much in or out (up to some amount I forget but out of your considerations), and then it locks for the other 11 months. It pays better interest than an instant access account but still works on a short enough time frame for you to be able to get it when you want it for university or the like. Obviously you wouldn't put all your money into that, you want instant access to some but if you're after something 'investment-like' I'd say go for something like that.
 
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LeJosh said:
Which is why I said the smart guys would've known what to do and perhaps even when.

It hit a massive surge because the US loaned 2 Billion worth of silver to people in return for paper silver but when the contract was up, they had fewer silver than was actually booked in. Causing it to spike on the US market. It also wasn't the whole the 80s, it was that one year. Someone didn't pay back their silver loan basically. :p
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Absolutely- the smart people would have sold, and the unlucky will have got burned. Which is why the OP maybe shouldn't invest in silver. From the graphs posted - it looks like now is the opposite of a good time to invest in silver.
 
I'd have a look at the interest rates and offers available on somewhere like moneysavingexpert.

Considering you're not likely to have to pay any income tax, I'd wager that a standard savings account + giving your bank a signed R85 would net you more interest than most ISA accounts at the moment. But I could be wrong.
 
Pinkribbonscars said:
Absolutely- the smart people would have sold, and the unlucky will have got burned. Which is why the OP maybe shouldn't invest in silver. From the graphs posted - it looks like now is the opposite of a good time to invest in silver.
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Back then they didn't have the internet quite so prevelant either but journalism and writers would've got the point across. Especially economic professors who write papers.

But it's kind of a rule that you buy low and sell high (for obvious reason), whoever bought it at 40+ dollars to the oz was a fool. :p
 
Btw OP well done on saving at such a young age...good start indeed!

I would suggest as Fox has said that the OP keeps that small amount he has in cash savings. A cash ISA @ 3.2% is the best you can get at the moment unless you want to tie up the money for 1, 2 or 3 years and get a higher rate.

It depends if you need access to this cash in the near future. That £1200 the OP has would last me two months if I became unemployed.

Savings - lower risk, lower returns usually instant access to cash

Investments - higher risk, potentially higher returns but should be put away for the long term

However I do know where PMKeates and Paul11 are coming from re: silver. My personal experience is that once you have built up some significant cash savings over the years, you can then look at different investments and expose yourself to some risk. If you did lose out then you still have 'safe' money to fall back on.

Some of the different product types I hold include: Cash ISA / NS&I Indexed Linked Certificates (these are due to return next month) / Regular Saver / Stocks & Shares ISA / SIPP / Commodities & Assets

I don't do individual shares - this requires more expertise, research and larger sums of money.
 
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Suggesting a 16 year old invests his money buying shares or commodities is ridiculous, especially considering he is looking for advice to invest every penny to his name. I find this quite irresponsible actually. Buying shares is a gamble. Whether you invest £50 or are a fund manager investing millions the principle is the same. Yes, you can control the risk to an extent if you know what you are doing.

Your average 16 year old does not.
 
WOAH!
Did not expect 3 pages.

Well i have done some research and decided that for now it is best for my money to stay in a savings account.

Thanks all for your suggestions though.
 
Biz.Kid09 said:
WOAH!
Did not expect 3 pages.

Well i have done some research and decided that for now it is best for my money to stay in a savings account.

Thanks all for your suggestions though.
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Probably a sensible decision in fairness.

There is nothing wrong with buying shares or commodities, I hold shares myself and have had decent returns, but in your situation it isn't worth the risk.

You should only ever gamble what you can afford to lose. When you break this rule you feel compelled to try and chase your loses and this is when you stand to lose a lot of money.

You've done well to save that sum and I'm sure you'd be gutted to lose it :)
 
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