Hello, new member here. I recently received a gift of $1000 for my baby son and seeing that he has everything he needs in terms of toys, clothes etc, i was thinking of investing this money in gold coins. About 10 years ago, i owned about 30 half sovereigns which i had inherited from my late father, which i sold to assist in a property purchase. So i would slowly like to start building a small collection of gold coins to help my son one day when he is older (1 or 2 per year) and as a small hedge against any possible global economic problems/diversification purposes. I've been reading these forums with interest but would like your more experienced opinions on how i can best invest these $1000. I'm more interested in sovereigns (full, half or quarter) or possibly the $200 coins. Also what is up with the price of a 2010/2011 quarter sovereign from the Royal Mint??? It is way above spot price. In your view does the proof condition justify the huge markup? Wanted to get a 2010 sovereign for his birth year but is it worth it? Thanks in advance.
Suggestion - Lunars. That's a coin a year. Other than that I'd stick with mainstream coins that you can get for as close to spot as possible. Stuff like Perth Mint, Krugers, Sovereigns, American Gold Eagles, Perth Mint.
I would just like to point out that Gold may not be the best investment by the time your son hits 18 so I'd recommend you switch to the next best asset class when the time is right. Also In 18ish years time silver may rise faster then gold, shortages anyone?
Thanks for the feedback everyone. Keep your opinions going. Boston, i live in Australia. Updated my profile to reflect that. Lav, good point about asset classes, however the only one i am keen on is property (which obviously is much more expensive). Not too keen on fixed interest, shares or cash. The other alternatives i can think of are PMs and Art. I like the fact that gold is physical like bricks and mortar. Will look into silver as well as per your advice.
Hi Byron, Funny thing - just received a similar gift for my 3 week old son too I've been buying sovereigns on a regular basis for his older sibling, but am looking at buying either a 1/2oz coin or 3x 5gm bars for him. Forget the proof sovereigns - they lose all of their premium. I have modern proof sovereigns in the album bought on a spot plus X% basis - someone somewhere has originally bought them new, and ended up selling them on gold content alone - better to find low premium gold and maximise the ounces. With sovereigns and $200 coins though, check the premiums - they are liable for GST, but even with this added are sometimes cheaper than 9999 gold coins or bars. A sovereign a month if you can afford it (or sovereign every 3 months etc, whatever your budget) will build one hell of a nest egg by the time they are of age.
We are doing the same for our unborn baby... We just bought a 1kg silver dragon coin and some gold dragon 1oz coins. We see this as buying her "milestone" gifts in advance (18th gift done, 21st done, uni fees pending, wedding present pending, house deposit pending) We aim to add to her fund at a rate of 6kg silver/year and 6oz gold each year...it's nice to know that as important dates come about we can easily provide for her.
hello. I read this topic by accident, my wife is expecting a baby (boy) too and unfortunately although i would like to keep the golden coins i received from my grandfather ....i am unemployed and i must sell these coins! i am happy that you all want to invest in your child future in gold ... i can not cause of economic crisis in Greece ....so if anybody is interested ,I have 3 golden coins for sale... Thank You
What the pelican said if its strictly for investment purposes get whatevers recognizable and closest to spot. Bars are a good option, 5 and 10 gram bars are still relatively affordable. If I was investing 1000 in such a cause I'd probably grab a 5 g, a 10 g in gold, and grab an oz or two of silver with the change. As said above don't overlook silver it may have a bigger pay off long term although gold is less volatile. Best of luck, I wish my parents were able to do that for me!
Soverigns can be a great lower cost investment - stay away from high premiums - volume of ounces is what counts not the 'prettiness' of the coin. Gold pelican - just read your responce - your spot on!
Lots of good points, particularly the "stay away from the higher premiums coins" at the least you are not getting the best future for your child, at the worst you could turn them into a numismatist.
The best investment you can make for your children is to teach them to think critically and question everything, including authority. As far as gold coins go, Id go with common, close to spot coins, preferably 999. So eagles, krugs, maples, kangaroos are all good choices. Better yet, I would have a little investment portfolio for your son so your not only investing in gold but invest as you would for yourself. At age 16 you could hand over the reigns and let all decisions be his and thus all responsibility and consequence be his to make/deal with. Im only 23 so my knowledge on raising children is non existent but Id strive to teach my kids to question everything including me and teach them Austrian economics from around age 8 so hopefully they will be financially literate and responsible by age 16 where I would then transfer their little portfolio to them. just some fruit for thought/rambling on about crap cheers
Thanks again to everyone for their advice. I'll let you know what happens. Don't worry Wout, critical thinking is my specialty. It's a shame that unlike the people on this forum, too many Aussies are complacent/dis-interested about matters economic and political. The chip off the old block will hopefully not be one of them!
If you have time. Read the panda forum. Exists a few pandas at dont much premiums with numismatic futures valuations. If they dont up in value the gold is the same. And the silver too.
