Hi everyone!
I just joined the forum after reading through a bunch of MMM's blog entries, and I'm getting myself in gear to give this whole frugality project a try. My first question concerns my initial foray into investing: a few years ago I inherited a collection of gold and silver coins from my grandfather, recently worth anywhere between $10K-$15K depending on the current price of gold/silver and the value of the coins. Until now they've been sitting in my attic, but now I'm wondering whether I should invest some of this money into mutual funds, index funds, or some other investment, or to just leave them be.
Some background:
I'm 26 and going to graduate medical school in 2 years. I'm very fortunate that I wont be leaving school with any debt, and although I'm not making an income yet, I do have my basic living expenses covered until I graduate. During my residency (lasting anywhere between 3-5 years post graduation) I'll be making approx. $50K per year, plus any additional earnings from moonlighting. After that, I'll be up to a real doctors salary. So until then, these coins are basically what I've got to work with investment-wise.
So... on the one hand, unlike other investments, theres no risk of gold completely losing its value, and are a sure safety net. On the other hand, something like an index or mutual fund may get me more returns, and it may be good to get my feet wet in the investing world now, while I'm still dealing with relatively smaller amounts of money. But these funds have more risk (even the conservative ones). Given the recent highs of the stock markets, I'm also worried about another downturn in the near future.
So that's my dilemma - let the coins sit and serve as a safety net for the next few years, and see where gold/silver prices go, or invest some portion in another way, and take a risk. I'd like to hear any thoughts and advice you all have! Thanks in advance - I'm excited to join this community.
- MLG