Spare Cash - What to do?

A

andrew_de_a

I have some spare cash which I'm not quite sure what to do with....It's around the 100k mark and I have two options. One is to pop it all in my offset account which would make my portfolio positive to the tune of around $600 a month or to invest a portion in shares (probably an index fund) for the long term (30 years).

I'm not looking for specific advise, maybe just an idea or new angle I havent thought of.

Thanks in advance
 
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I'm not looking for specific advise, maybe just an idea or new angle I havent thought of.
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With this in mind. It is an out of the square suggestion.:D

Buy some silver bars via the Perth Mint certificate program.

The profit here is a little speculative but the capital risk is very low IMHO. The price of silver will never again plunge the way it did in '08.

For any who enjoy a punt as much as I do, silver's time in the sun could be but a couple of weeks away. I base this "guess" on a couple of facts: Firstly Ag has been rising more strongly than gold recently and I think there is a solid reason for this, not mere speculation. I say this because it is a reported fact that JP Morgan Chase are being forced to close out their hedge book "sometime". There are rumours that it may be as soon as this week they start to act. There is a rumour that Bill Murphy is behind a class action against them which will be lodged this week. They have massive short positions that can't be closed out with physical silver.... there is simply not enough metal above ground to enable this.

Recently the Au/Ag ratio was as high as 78. It is now 72 and traditionally <20. This is a trade with good upside and limited downside. Use a stoploss about 7% down and total losses are limited to 10%. :)

Please understand this is speculation but with a solid basis and don't go this way if you don't enjoy a bit of a punt.
 
Hi there Andrew,

I wouldn't mind that spare cash...;) Please Pm me for my account details.

OR

I would be placing it in your Offset as you suggest.

I base this opinion on my own circumstances and what I would personally do with that cash right now. Of course there is not enough information about your own circumstances so the above is only my opinion.

Regards JO
 
andrew_de_a said:
are you currently investing in silver sunfish?
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Not directly in the metal except that I have been buying bullion coins for years.

I have quite a lot of money in the miners though and they are leveraged to the metal prices. Last night gold went up >2% but my Canadian miner went up >4% which gave me a nice $10k profit. This morning I bought some more CXC (the only real silver play on the ASX) but I don't have a lot of cash in the bin.
 
Will you invest directly in silver?

This is a silly question, if you buy physical silver from the mint, who do you sell it to when you want/need to sell?
 
andrew_de_a said:
Will you invest directly in silver?
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I'll stick to the miners but you are told to wash your mouth out with soap if you recommend them here. :D
andrew_de_a said:
This is a silly question, if you buy physical silver from the mint, who do you sell it to when you want/need to sell?
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The mint. But there is a buy/sell spread which is why I said to use a 7% stoploss to limit to a total of 10%. By not taking physical delivery there is no question mark about purity when you sell. If you store at home there may be if you want to sell back into official bullion stocks.
 
depends whether you want access to it or not.

we've got a slightly larger amount than you, but no point in paying it towards the ppor mortatgage or setting up an offset against it as that is locked in at 5.19% for another 18mths. to pay the amount off or set up offset we would have to unlock and pay 2% higher rate.

instead i am putting the money in a virgin money online account at 6.75% for 4 months, then drops back to 5.35% ... fully on call as we'll be doing some reno's here and starting building the townhouses later this year.

i though 6.75% was pretty good. in my name to soak up some carried forwarded paper losses, so no tax.
 
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Having it in the offset for now won't hurt until you decide what you want to do with it. Plently of oppurtunitys and pits out their... just educate urself

Regards,

RH
 
I'm also bullish on Silver (& related stocks) for the short to medium term, although if I recall the last time I mentioned it on here I got told to stop investing in trinkets :D

There are just 4 "pure" Silver plays on the ASX and as implied by steveadl it will soon be down to 3 with CXC delisting from the ASX in December. This will leave 3 "pure" Silver juniors. I hold positions in 2 out of the 3.

There are probably better picks on the TSX, however I think the rarity of Silver stocks on the ASX could work well in the favour of those that we have and there is definitely potential for great things from at least two of them.

One has been hitting some incredible Silver grades with recent drilling, including this beauty: 1m at 6,150 g/t silver and has a resource upgrade pending. The other has a 50moz resource and announced today they are expecting this to increase by another 44moz as they continue to explore the tenement (they are moving towards production targeted for late 2011).

There have been some good free Silver reports recently will try and dig them up:

http://www.hindecapital.com/docs/hi... 2010 Silver Velocity The coming bullet-1.pdf
 
Thanks for the report Hobo, will try and get to it today. How about the codes of the other two ASX co's, or do I have to find them the hard way? :p
 
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