if i had 200 dollars to invest in coffee, how far can i get
dont have much money what are my chances to yield positive cash flow
Answers
2082 points
alanj answered 8 months ago …
You didn't say if you where talking about through a commodities broker or a stock broker, so here goes. Commodities broker- For $200 you would have to do options on Coffee futures. You would have to purchase an option so far out of the money and so close to expiration date odds are not in your favor. For a stock broker- You might want to consider a commodity ETF or ETN. Here's a link to a complete list of commodity ETFs and ETNs. http://etf.stock-encyclopedia.com/category/commodity-etfs.html .< JO > is a coffee ETN under the iPath listings. I'm a little unsure what the difference is between a ETF and an ETN, or how risky an ETN is. You may want to do a little research to see what a ETN is. I do know the standard ETF is safe. The Ultra and double Ultra's ETF's are for short term only. They will lose value over time, similar to an option but they don't expire.
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alanj answered 8 months ago …
Here's a link that explains about ETN's (Exchang Traded Notes) http://en.wikipedia.org/wiki/Exchange-traded_note
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356 points
Dusty answered 8 months ago …
If you are starting new, put the money in a bank account or buy US Savings "I" Bonds. I Bonds are adjusted for inflation and can be bought on-line from the US Treasury. The minimum holding period for theses bonds is one year.
Most brokerages have a minimum account value. The minimum account values I know about are much more than your $200.00.
The basic guideline for expenses is to not exceed 2% of investment cash per year. Even at a super-discount on-line broker I consider that the minimum trade is $1000.00 USD in order to stay anywhere near that guideline.
If you have already moved beyond all of the above, and in addition to what has already been said by other responders, the Markets are currently in more trouble than they can get out of. Everything is a dicey mess; but hold on: in the fall of this year (2009) the little basket the economy is riding in will come to a very special place where the flames and the most evil-looking dudes ever seen will be highly visible even from flat down in the bottom of that little basket. The trip through that place will take several years.
I can only repeat: the best chance for small amounts of money is US Savings Bonds and the I Bonds have the best inflation protection.
192 points
seyobnats answered 8 months ago …
You could buy about 1 case of ground regular Maxwell House coffee at the supermarket. You will get the return on your investment by setting up a curbside table and coffee percolator and selling hot coffee to people on the way to work in the morning. Of course you would also need cups, creamer and sugar packets, napkins and municipal sales permit to do so.
Otherwise, put your money in the bank or in USSavings bonds as Dusty suggests.
