Stack or Stock?

[Silverslave]

I was originally going to build a stack but then realized that I could see higher returns by investing in silver mining shares..

My disposable income is only £200 a month. Looking for honest opinions here. I feel like I am still young enough to take a gamble on the stock market.

Listening to guys like Daniel Ameduri & Marin Katusa have got me itching to invest, they seem to give good advice and know what they're talking about. I have some what of an investment plan. My plan is to buy several hundred penny stocks in the Junior resource sector, hold for 3-6 years and then sell.

I need some help finding a UK stock broker with low fees and an easy to understand interface. I tried XTB.com but it was too complicated for my liking. I just want to be able to search for the stock and buy a set amount of shares, I don't need all the graphs and complicated stuff. Any suggestions on a stockbroker that fits this description is highly appreciated!

P.S should go with a Stocks & Shares ISA or a normal share trading account? Is there any reason that I should not go with a ISA if I don't already have one?

 

[BaldyBob]

Gambling is exactly what it is.

If you are happy to lose a large part of your stake, then that it fine, and win or lose you will probably learn some valuable lessons that are best experienced rather than read about.

Your Silver will always be worth spot dependant upon what you are buying. Although not my cup of tea, the right semi-numi's could do well over a 20 year hold.

Good luck either way.

 

P.S. Yes, do it through an ISA in a low cost platform, I use AJ Bell

[HawkHybrid]

the amount you should invest should be determined by your

understanding of the investment. (I think belangp on youtube

applies this to gold but it should be applicable to a broader

range of investments).

work out the figures. it should be that you should use up your

isa allowance first for any investment that can fit inside. junior

mining shares have higher risk for higher rewards. everyone

is unique, use your personal advantage.

 

HH

[FriedrichVonHayek]

Stick to stacking,I lost a bit of money in the Junior Gold Trust,it is down 74.3% in 5 years.

"A Gold mine is a hole in the ground with a liar at the top" as the saying goes.

[Silverslave]

16 minutes ago, FriedrichVonHayek said:

Stick to stacking,I lost a bit of money in the Junior Gold Trust,it is down 74.3% in 5 years.

"A Gold mine is a hole in the ground with a liar at the top" as the saying goes.

Did you know the difference between a Bull & Bear market before investing? I dare say you just did not invest at the start of a bull like I am about to do. I also am not going to invest into a fund, I prefer to research the corporations myself.

[FriedrichVonHayek]

2 minutes ago, Silverslave said:

Did you know the difference between a Bull & Bear market before investing? I dare say you just did not invest at the start of a bull like I am about to do. I also am not going to invest into a fund, I prefer to research the corporations myself.

If you know it is the start of a Bull market in mining shares then nothing can possibly go wrong,you should make a fortune.

[Silverslave]

24 minutes ago, FriedrichVonHayek said:

If you know it is the start of a Bull market in mining shares then nothing can possibly go wrong,you should make a fortune.

Thanks, I just wish I had more capital to invest than the measly £200 a month I currently have.

[HighlandTiger]

28 minutes ago, FriedrichVonHayek said:

If you know it is the start of a Bull market in mining shares then nothing can possibly go wrong,you should make a fortune.

 Ah the old penny stocks investment plan. You just can't beat the unswerving belief of the youth of today. It is so easy to make money isn't it? Never any pitfalls just over the horizon. I can remember the old adverts in the back of newspapers, comics and magazines, where you could buy the latest tips on the next big penny stocks.  

Just a word to the wise to our OP. It doesn't matter if you invest at the start or end of a bear or bull market, you can both make money and lose money no matter what the scenario. 

But it seems you don't need advice from anyone, because you have already seemed to have made your mind up on what you want to do.

PS, never believe a word about finance from anyone who has a book to sell, a you tube channel or a blog. People who really know what they are doing when it comes to finance, just get on with and make money. 

That old phrase always comes to mind in situations like this. 

"Those who can, do. Those who can't, teach" 

But good luck anyway. 

 

[Bumble]

Being young is OK as a reason to invest in shares. The idea is that if you lose your money, you still have plenty of time to earn more. When you are older, you are compelled to be more cautious. That said, I would still put some money into the physical product. If a stock pick works out well, sell some and buy some coins with the profit.

Picking stocks, especially among the juniors and the exploration companies that are not producing, requires a lot of discipline. Most likely, they will either go bust, or will go x5 or x10. I own one penny stock, First Mining Finance (CVE:FF), mostly on the back of the fact that it is run by Keith Neumeyer, who is very experienced and successful, and Sprott are a major backer. It has already nearly doubled since I bought it in February, but I think it has plenty of potential. As always, do your own research.

[HighlandTiger]

7 hours ago, Bumble said:

When you are older, you are compelled to be more cautious.

Not necessarily Mr B, there are a few of us on here that have come to investing very late, (ie in our 40's), and are now desperately trying to catch up. The fact that we are on a PM forum shows that we have thrown a lot of caution to the wind and taking a massive risk in trying to accumulate wealth for our dotage.  

[KDave]

Bit of both perhaps? Penny shares are extremely volatile and it takes a good understanding of your investment and everything surrounding it to decide when to hold, sell or buy more when the price goes either up or down. Ultimately if you don't understand the stock, the market, yourself as an investor, you will be subject to the two emotions that cause people to lose money in stocks - fear and greed. They will drive your decisions. Experiencing the process is a good/potentially expensive way to learn about it though. Do your own company/market research, make your own decisions, don't take tips from the experts as gospel, in fact be a cynical of them and prove otherwise.

Physical silver is also volatile up and down but can't go bankrupt so will always have some value over the long term. Neither are good short term savings vehicles. Both are highly speculative imo, but longer term looks good for silver, mostly going from the trend from investor demand.

I don't believe we are in a confirmed bull market in precious metals yet but this is a matter of opinion like everything else when it comes to investing and economics. The long term trend is still down, we still have not had the lower low (if we even need one), lots of other pointers say not a bull market, lots of others say it is. The latest spike upwards was arguably driven by people trading short term news and gold led silver, but who knows what happens next. Good luck! 

[FriedrichVonHayek]

I invest mostly in monthly Income funds as I like to receive regular dividends.

The only realistic way of improving your wealth is to save in your ISA and SIPP re-investing dividends along the way and stay out of debt.

[BaldyBob]

I also like to do my own research silverslave, it keeps it interesting, and fund managers aren't so great. If you like someone's fund, just copy the top holdings!

 

However, I have learnt to avoid AIM penny stocks. That being said, there are worse ways of losing £200 a month, and you will gain a lot of valuable lessons on what will be a rollercoaster ride. You will have some good uns, and some shockers. As long as your eyes are wide open to that possibility, go for it.

[vand]

Over the very long term the miners have NOT outperformed the metals themselves.. In fact, quite the opposite. But in the short/med term they will give you a leveraged play on the metal price. 

My own view is that they have fallen so far in the last 3 years and are are so underpriced right now that I think they are an outstanding buy up until they retouch some long term averages in hui/gold ratio, after that the argument becomes not quite as clear cut.

I will buy mining stocks myself at some point but I believe that the core of a PM portfolio must be based around a core holding of physical, and that is what I am personally focussing on right now.