47 votes

Smartest thing to do with 5-10k dollars?

I seek the wisdom of the great multitude of intelligent people that pass through this sacred place.

I'm a 20 year-old college student who has saved up 10k dollars over the past 5 years of working as a lifeguard. What is the smartest way to invest 5-10k to make some more money in the short term? I'm loathe to let it languish in a savings account and I would like to have some cushion money when I leave college to pay for loans and what not.

I appreciate any and all advice!

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lol nice.

lol nice.

Rethink college.

Is it really worth the money you are spending on it- other than making mom happy? Will the job be there when you graduate and if it is, how long will it last? Don't wait on the precious metals. They are already becoming scarce.

Gold & Silver

30% gold and 30% silver is what I would diversify your money into, but not yet. I say this because I would not be surprised if both come way down in price before the end of the year, before shooting back up again.

Take silver for example: it was $50 US per ounce in 04/2011, now its now around $29 US per ounce. Bottom line for me on silver is if you hear of it getting close to mining / production cost buy some.

Gold I would like to buy around the same time as silver, and if silver goes that low in price chances are gold will have come down a fair notch as well.

In the meantime, keep an eye on the monthly charts for gold and silver. Possible entry points include $14.55 per ounce (silver) and $680 per ounce (gold).

If gold and silver ever got

If gold and silver ever got that low you would never be able to get you hands on the physical! If the "paper" price were to go that low, the physical price never will. Most likely you will not be able to find any physical at that point, but if you were lucky enough to locate some then I can guarentee you that you would pay a hefty premium. Buy today!...if you wait, you will loose! Don't worry about saving a couple of dollars; eventually it will be priceless. If you could time the market you would already be rich.

“How strangely will the Tools of a Tyrant pervert the plain Meaning of Words!” – Samuel Adams

Those prices are gone

We will never see those low of prices for gold or silver.

Of course you may see low prices. Whatcha got fer money?

Are you trading tokens? Paper promissory notes (e.g.: Fed Res Notes; green cash)?

If you compare & price things elementally, gold & silver are about the same worth over the last 6,000 years. Compare to other valued elements. Trade should be for like value. Promissory notes are not money. They are a promise to pay.

5¢ worth. Our so called monetary system has a remnant of our esteemed money which was the envy of the world for a century & a half. That remnant is still in common circulation. Tis our lowly nickel. 25% nickel + 75% copper. Worth its weight in metal. Our nickel is the only money in common circulation still worth its weight. Quantities limited.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Ron Paul said buy real estate.

I heard him on that morning financial show can't remember the name of it.

Seems to me it's a good investment. People are always gonna need housing. A rent house is protected from inflation because rent will increase as inflation increases. You would have to go with a real estate investment firm unless you can find a "real bargain" for 5-10k. Fixer upper for sure.

Mexico went through a huge peso drop. There is a story about a guy who borrowed money for 14 tractor trailers and after the crash he sold one and paid off the banks.

Diversification, reduction of interest on debt load.

I would purchase some silver:


I would spend about $1,000 of what you have on silver, mercury dimes and Benjamin Franklin half dollars.

As many have said, to attempt to make money in the short term off of the amount of capital you have at this time, seeing that you will continue to take on debt, thus interest payment ... and have significant debt from college loans and expenses, putting the money into any short term venture of investment might be counter-productive.

To invest in the short term and risk money, risk losing some of that money, instead of setting it aside in an account to pay on your student loan would be a disaster, if you lost money in a short term venture instead of putting it to use paying off your loans.

The United States of America is in a difficult economic position at this time because our government and the Federal Reserve struggle every month to make enough money to pay off just the interest on the loans they have outstanding, instead of using money that is available to pay off the debt and reduce their overall spending of money, which incurs more and more debt.

For you, at a young age, to avoid the vicious cycle of piling up more debt, while your real money, your savings, is tied up in a short term and perhaps risky investment, would be a lesson you never forget, if you lose that money.

There are no safe, short term investments that offer good returns. Our society at this time simply does not offer the individual the opportunities to invest a relatively small amount of capital short term and make enough money off of that after taxes for it to be worth the risk, and there is risk in many different areas for you, the greatest of which is not losing the money, but incurring more and more debt, and especially if you lose the money while piling up that debt.

If I were you, I would purchase, I would get my feet wet by purchasing $1,000 in silver mercury dimes and franklin half dollars. This will give you something that you can physically hold, and have, so if the economy takes a really bad turn, and the dollar collapses, you will at least have the silver dimes and half dollars to barter and trade, and perhaps have them if a new currency is issued. Then you can sell them for that new currency.

But most importantly, with a purchase of silver coins, you will have a store of value that you can then study, study the market that surrounds and affects that store of value. The knowledge you gain over the course of a year or two as you keep up with, and learn how to keep up with the silver market would be worth much more ... than the silver itself, plus, you have the silver, in your hand, literally.

The rest of the money I would set aside in a bank account that pays on your student loan to a degree that it will reduce the amount of interest that builds on your student loans. So that when you get out of college you will not only be faced with a lower obligation, total obligation to pay that money, the total of the outstanding loan, but you will be suffering a lower interest payment on it, and you will be able to pay it off more quickly.

If you have $10,000 to spend, buy $1,000 in mercury dimes, and $1,000 in franklin halves. Buy circulated coins, don't buy nice, shiny coins in super good condition. You just want to be able to read the date on it. So yes, buy "junk" dimes and halves.

The beauty of the mercury dime and the franklin half is that they are easily recognizable as being "true silver" coins, the date does not really have to be checked because all of them were silver. Also, a lot of other people have them as well, so they are "liquid" in a silver barter market. These coins are also easily recognizable by people my age, 48, because as a young child, I would still see them in circulation at some times, rarely, but some times.

People who are now 55 and older, used these coins as children, teens and young adults. They are unarguably, the best way to start, or get your feet wet, in stacking silver because they are ultimately so useful in many different circumstances.

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$1,000 FRNS in cash for emergency

Invest in stocks. See www.ronpaulstocks.com $5,000

Buy physical silver and gold $4,000 www.midasresources.com

DJP333's picture

Peter Schiff

Learn about Peter Schiff, go to this website www.europac.net and see if you could invest with his organization.

"It’s not pessimistic, brother, because this is the blues. We are blues people. The blues aren’t pessimistic. We’re prisoners of hope but we tell the truth and the truth is dark. That’s different."


Physical gold will ALWAYS be worth something

sounds like a losing battle

I sincerely hope you succeed with your quest however trying to make money "short term" is hard. Short term capital gains plus your risk is not promising.
You could have fun making VERY low cash offers on local foreclosures (maybe get a partner). Much cosmetic work can be done cheaply plus it's instant equity.
Consider attending an insurance auto auction and buy a vehicle you like that has minimal damage to repair and retail.
You may want to avoid metals until closer to January because the Fed & White House will be doing back flips propping up the dollar thus freezing or lowering metals IMO.
If there's a product or service you are passionate about then consider buying wholesale and selling retail...good luck

Front Page?

I've never been much of a critic here... Don't comment much... But that this post is front page surprises me...

ya but...

.....look how many comments it has. I enjoy this post very much. This really shows where a lot of the Ron Paul types are at as far as economics.

Free market capitalism isn't right for America because it works better. It's right because it's free (and it works better).

What I would do

Silver before gold. Both should rise in value dramatically, but silver more so. Although they don't give you any cash flow or tax breaks they will gain in value more than any other investment the next few years. Then you can buy some (maybe a lot) real estate for cash flow. Real estate is an awesome investment.

For surviving the possible societal collapse
a gun and ammo
a stash of food

Gold For Bread - Zimbabwe

For those of you who say that gold won't be worth much during a hyperinflation, take a look at Zimbabwe...


Use your money to help promte

Use your money to help promte liberty insuring a future you can be proud of, this may not fit in to your short term profit motive but would be better for all concerned.

Does your family own land?

Either way, buy some tools to start with. Make sure you have all the standards; shovel, hoe, hammer, etc. Some power tools might help.

If your parents (or you) own your property, you could probably do some "DIY" solar panels for pretty cheap.

Gold and Silver is a great place to store your wealth (rather than a saving account).

I guess a gun and some ammo, if you feel the need.

But if you have land, Seed! Buy seeds, and trees (food baring trees).

Or, you can kick me some money: http://jaktober.chipin.com/the-free-independent-sun-spring (ends tomorrow).

Jack Wagner

Guns and ammo, I'm no

Guns and ammo, I'm no survivalist but stocks are incredibly volatile, and I personally would rather have firearms then gold or silver.


I am no financial advisor

and I would never tell anyone where to put their money.

I put all my money into silver and gold. Mostly physical silver, some physical gold and mining shares.

That was quite a lot.(for me)

I haven't read all the replies, but I'm sure precious metals

are listed in there somewhere since this IS the DP after all. And considering the amount you have, I fully concur. Especially with advice to purchase "junk" silver or silver bullion. Perhaps an ounce or two of gold. Definitely stay away from numismatics or "rare" coins.

If you don't want to go that route, perhaps consider purchasing farm land?

In some cases, it can be had real cheap per acre. You might find something already being farmed and the owner may be willing to sell.

In other cases, you might find land next to other acreage that is already being farmed and you could contract with that farmer to handle your additional acreage as well.

"Owner's rent" varies, but you should expect to get anywhere from 1/6 to 1/4 of the crop in payment each year. And this doesn't require any effort on your part. It's a cheaper and easier way of being a "landlord" and having some money being generated off of property with little or no cost to you in time or money. (outside of the initial purchase)

Just make sure as with any land purchase, you've got all your titles, rights-of-way and covenants et cetera squared away. Be sure to also pay attention to if the mineral rights are included, or just surface rights. You might get lucky and someone will strike oil next to you.

Of course, surface rights are cheaper, and in the short term, that's all you are looking for anyway.

Our paper currency, currently works, as of the time of this post

Gold and silver hold their value as measured against what they can buy. A quarter made of silver (pre-1965) still buys a gallon of gas today. Just as the silver in that quarter bought a gallon of gas in the early 1960s, it still does today.

It takes 25 token money Quarters to buy a gallon of gas. Silver has proven to hold its value in goods and services better than paper currencies for several hundred years.

Gold, silver and other commodities held can help maintain wealth, but they don't do much else.

One may also buy commodities and equipment in the event that Wall Street's financial failures shake up or brings down Main Street.

An entrepreneur might invests in capital equipment or real properties with the plan to produce profitably and increase wealth. I know an individual and a business that are buying tools and equipment that promise to improve their capabilities to better serve their customers.

The capital equipment can maintains some utility, even if it loses dollar value.

Paper money since the 1960s buys 25 times less that it did then. A useful currency currently but a bad investment.

Free includes debt-free!

buy physical silver......

buy physical silver......

In this thread

You will find some good advice and some bad.

I was hired on by a company right out of high school and put through their apprenticeship program to which I got an associates degree through them in their desired field of study. 3 years later I had saved $10,000 at the ripe old age of 21. I was in your exact position.

I decided I wanted to push forward and get my bachelors degree.

Looking back now I wish I had done different with my saved money.

Putting it toward college is a waste of money. Why you may ask? Because what ever knowledge you would pay to receive in a college is free to look up over the internet. Many of the folks here may not understand the significance and power of the world wide web. We as humankind had the stone age, and bronze age, and iron age, but we are now in a new age, the age of information that was ushered in by the internet. Engineers, doctors, and lawyers are no longer elitist groups because what ever special information they are privy to is readily available to everyone. The only college worth attending now is those that carry prestige. You are not paying for information, the information is free, you are paying for the 'sheep skin' and connections.

What I wish I had done with my $10,000 is started a small business. Anything that builds wealth. I have worked many jobs where I put 60-80 hours a week into only to be compensated enough to do it again next week. If you put that kind of dedication into your own business, the compensation will be ten fold. By the time you are 30 years old you may be able to hire someone to take over your duties and you just oversee your business which frees up your valuable time to focus on the more important things in life like your family.

I will say all the folks here that say pay your debts first are wrong. Do not pay your debts first. Build wealth first then your built wealth will take care of your debts later. If the financial system collapses, which seems imminent, even better. When the debtors come to collect their meager debts, you will be able to hand them a trillion dollar bill and ask for the change.

I respectfully disagree. Unless you are making FAR in excess of

your living standards and debt service, it is nigh impossible to "build wealth" and pay debt later. You still have to service that debt while you hold it. All the while, you are making "minimum" payments and not getting very far.

It is much easier to live within your means and build wealth when you have NO DEBT. In fact, it is so easy, it is almost laughable.

ALWAYS pay debt first. It is a sure thing. Investments are risky and if you lose, you still have to manage to pay that debt. Being completely debt free, it is much easier to save and even invest while still living within your means.

Where are you going to get a trillion dollar bill.

Unless you have something to sell, and some holder of a trillion dollar bill willing to buy.

Holding debt is a risky proposition. If something is collateral for a debt, there is a risk that the terms of the contract cannot be met, even though one may have sufficient wealth at the time.

Free includes debt-free!


a financial system fails hyperinflation occurs. When you have hyperinflation you have bills in very large amounts, I used a trillion dollar bill as an example but it would not be unthinkable. Just look at Yugoslavia in 1994 or Zimbabwe now, or Germany in 1928. In the event of a financial meltdown your best bet is to be a provider of a needed good or service because you have the unique ability to barter. My grandparents lived in Mississippi during the great depression but they never felt it because they were farmers and never used money anyway. Their whole community bartered. My grandfather had the mill everyone used to grind their grains into meal. He bartered for its use.

At the rate of inflation today as compared to interest rates you are better off holding your debt. The value of the debt plus interest a year from now will still be below the value of the debt today because of inflation. You would be better off putting your money in gold waiting a year, selling the gold and paying off the debt plus the interest it accrued, and you would probably still have money to boot.

Did they have debt?

Holding debt is risky, unless you have the cash on hand to pay it off.

On fact about inflation: Wages lag prices in and inflationary money system.

That's one strike if wages are the source of income.

About 25% of my neighbors are out of work and there are no signs of recovery.

Free includes debt-free!

I don't think it will work

I don't think it will work that way as most loans are hooked to the prime interest rates... They will be going crazy as hyperinflation hits... You may be ale to time some pay offs out in your favor.

Don't invest

If you have student loans take all your money and pay down your student loans. If your loans are Sanford loans 3.6% interest or private bank loans at 10%. You can invest 5-10k in the market which is extremely risky with the EU crisis. You can buy CD's or Bonds that will pay less than 2%. If you invest in a investment vehicle that yields 2% on 10k you will make 200 a year.. while the interest on your student loans of 10k will cost you 360-1000 a year.