Invest in commodities?

[byzantium]

A lot of people are wondering what they should invest in. I have seen that the great deals in real estate, where you can buy six houses, fix them up, and have them cashflow all day long, are mainly going to people who have been real estate investors for ages. Unless you're a close friend of one of them, and he's willing to tutor you, real estate isn't a good option. The Obama Administration seems to be trying to create a stock market bubble by printing money, which not only will eventually destroy the market but lead to hyperinflation and possibly a default on US debt, so you don't want to be holding US debt. (If you can buy debt from China and India, you might be better off, but I would have no idea how to do this.)

Recently some people on survivalist blogs have suggested investing in exchange traded funds that invest in commodities such as oil and grain. The world still needs to eat and to have fuel, even if the US govt defaults which I believe they eventually will. Another idea that's been suggested is to have certificates of deposit denominated in foreign currencies, especially yuan (China) and maybe euros. As the US dollar inflates out of sight, your money in foreign currencies will be safe. Those are some investment ideas I'm considering.

Disclaimer: this post is personal opinion. I do not own any of these investments as of yet.

[jmeijers]

It is true that the Euro has proven to be a lot more solid than the Dollar thusfar. However, Europe usually follows the trend in America. So if you see the dollar fall hard, the Euro will likely go with a while after.

But I don't know much about this stuff, it is just what I noticed over the past 10 years (with the Dutch Guilder before the Euro came of course).

[tribe2442]

if ur lookin 2 make some quick money it is ok to invest in commodities, but not long term, it is also risky investing in commodities long term. A basic commodity stock is FREEPORT-MCMORAN COPPER & GOLD (FCX), look at a graph representing it's value. It is all over the place from $15 a share to $55 a share. I know that you didn't want stock investments to be brought up but it needs to be when talking about commodities. If you are looking for a good investment in terms of long term, look at iShares MSCI EMERGING MK ETF (EEM). Trust me it is the next big stock and it will not fail you. Expect big profits long term. Short term it will not be very profitable, but long term will be HUGE

[jcira]

There is no doubt that investing in oil and grain is a great strategy right now. Hyperinflation will soon plague us all with the way the Obama adminstration is printing money. I also beleive that gold is a great investment at this time of massive inflation. I am looking to invest into some wheat or oil futures very soon. I have only traded in the stock market so the commodity game is very new to me. Anybody have some good advice on getting started.

[BusinessAdviser]

A lot of people are wondering what they should invest in. I have seen that the great deals in real estate, where you can buy six houses, fix them up, and have them cashflow all day long, are mainly going to people who have been real estate investors for ages. Unless you're a close friend of one of them, and he's willing to tutor you, real estate isn't a good option. The Obama Administration seems to be trying to create a stock market bubble by printing money, which not only will eventually destroy the market but lead to hyperinflation and possibly a default on US debt, so you don't want to be holding US debt. (If you can buy debt from China and India, you might be better off, but I would have no idea how to do this.)

Recently some people on survivalist blogs have suggested investing in exchange traded funds that invest in commodities such as oil and grain. The world still needs to eat and to have fuel, even if the US govt defaults which I believe they eventually will. Another idea that's been suggested is to have certificates of deposit denominated in foreign currencies, especially yuan (China) and maybe euros. As the US dollar inflates out of sight, your money in foreign currencies will be safe. Those are some investment ideas I'm considering.

Disclaimer: this post is personal opinion. I do not own any of these investments as of yet.

"I have seen that the great deals in real estate, where you can buy six houses, fix them up, and have them cashflow all day long, are mainly going to people who have been real estate investors for ages. Unless you're a close friend of one of them, and he's willing to tutor you, real estate isn't a good option."

Why wouldn't real estate be a good option?

[Lambo]

I have money invested in Silver and Gold, and Oil.

with time they will grow.

[byzantium]

"I have seen that the great deals in real estate, where you can buy six houses, fix them up, and have them cashflow all day long, are mainly going to people who have been real estate investors for ages. Unless you're a close friend of one of them, and he's willing to tutor you, real estate isn't a good option."

Why wouldn't real estate be a good option?

Real estate is about who you know, and being an apprentice to a successful rehabber, a guy who's been doing it for 20 years. My point was, if you know such a person, by all means get him to make you his apprentice, and get him to teach you the ropes. Real estate investing can't be learned from books. I doubt that most of the college students posting here have such connections. I sure don't. There's a rehabber here in Sacramento who has been buying up foreclosures in crappy neighborhoods like North Sacramento/Del Paso and Oak Park, advertising on Craigslist for renters, then fixing the place when he gets a tenant lined up. If I was that guy's friend, and I'd known him since I was a kid, I'd ask him to teach me. But he's not. So stuff like ETFs would be a better option.