With Christmas upon us, there is no better gift than love and security. Giving our children gold investments not only give them a head start in life, but help them with future financial security. We worry about our kids, so we must do what we think is best to invest in their future.
One could either buy physical assets such as coins and bullion or invest in Exchange-traded funds. These two methods are the easiest to gift to your child. There are plenty of resources available, and you should talk with your financial adviser for the best course of action.
Buy Gold Bullion and gold individual retirement account Coins is the easiest method, but comes with some disadvantages. Gold is very valuable and needs some measure of security. Always keep coins and bullion in a safe place out of view. You should have a safe in your home for valuables and documents that need protecting. When buying gold, go through a reputable dealer. Purchasing precious metals from online sources like eBay or Craigslist opens you up to fraud. Gold can be easy to counterfeit.
American Eagle gold coins are the most popular choices. These coins are minted in official United States facilities in Denver and Philadelphia. Before buying any coins or bullion, always check the spot price of gold. This is usually listed with commodity exchanges and other websites. Dealers will mark up the gold by three to five percent. Some will also have other fees such as commission rates.
You can buy your kid stocks in gold-mining companies that are traded on the New York Stock Exchange. This is a little more volatile than physical gold as not only does spot prices come into play, but these companies also have to worry about ore exchange and the cost of mining. Talk with your stockbroker on the right companies to invest in.
Before you make any investment, doing the proper research is all buy mandatory. Any good parent should already have a competent team of financial advisers. These can include your lawyers, accountants and stock brokers. Talk with all of them to get a good cross reference of current markets and how they might affect your children investments.
There are resources online that give you the information and tools needed for any good investment. For example, insidersgoldbuyingguide.com has a insiders gold buying guide to read. Keep track of the current spot price on gold so you don't overpay in commission and markup fees. Read as much as you can, especially the gold buyers guide.