If you have managed to put together a small amount of capital, say a thousand dollars, what choices do you have as far as the vehicles you can use are concerned? Compared to Warren Buffett this budget may seem very small and insignificant, but it is sufficient for a number of great choices that are commonly chosen by even the wealthiest individuals. This can include precious metals, bonds, mutual funds, the Forex market, and much more. Some blue chips stocks can be affordable and will fit well into the amount that you have, and there are other securities that also have high value and a lot of appeal that are less than $50-$100 as well.
Precious metals are very hot right now, in part because of the history that they have and partially due to the state of the economy and the mixed signals being sent by the nation’s capital. This sector includes gold, silver, platinum, and palladium. While an ounce of platinum or gold is not an option if you do not have at least $1,600-$1,700 there are gram products that can be chosen instead which have a much lower cost. Palladium has an ounce value on the market of around $750 right now, and silver is only a little over $32 for the same weight. Each of these vehicles can be an excellent addition to your holdings while staying within budget at the same time.
Stocks can be a smart choice as long as you are willing to do a considerable amount of research on the company behind the share, and the required information that you need is publicly available. The share cost can range from a fraction of a penny to more than $100,000. One of the most expensive is the Berkshire Hathaway Inc. class A, symbol BRK-A. For a single share you will pay more than $145,000 on the current market. If you choose other blue chips picks, like General Mills or Apple, then you could get the desired stock for $50-$500 a share instead.
Bonds are another alternative that many individuals choose regardless of how much capital they have to spend. There are various types to pick from and each may offer benefits and disadvantages that are unique or not common. Municipals are those offered by governments and municipal entities in the USA, and this can include cities, counties, public entities like water departments and school districts, and a number of other public organizations.
You may also decide on mutual funds, trading currency exchange pairs, futures, options, and numerous other vehicle types. There is no single option that is right in every situation and each investor is different. Your goals, acceptable risk levels, objectives, strategies, preferences, and budget are all important considerations. Compare all of the possibilities that you are willing to consider and then examine which ones fit closely with what you are trying to accomplish. Some may prefer bullion because it holds wealth and has intrinsic value, while others may choose high dividend stocks because the higher risks mean the potential for greater returns.