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 Replies: 59 / Views: 5,037 |
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Pillar of the Community
United States
667 Posts |
We had stopped at a Arbys for lunch and when I got 4 copper pennies for change I was excited. My 14 year old daughter said what is so special about that. After I gave a short explanation she said well I have tons of copper pennies.
Sure enough she dragged out her old piggy bank it was filled with about 75% copper pennies including 52 wheats.
She charged me 3 cents per penny, she is a quick learner. However this led to her and I talking about investing some of her money.
Here is the deal I gave her so she would try it. I would guarantee the spot price that she buys her silver or gold at. We sat down and I showed her how the gold and silver market has been moving. I showed her what I have and reviewed what it has done over the years.
So with the guarantee of no loss I got her excited to give it a try. I thought having a 14 year put all their money into PM deserved a guarantee from dad. Besides it gives her an opportunity to see how some investing works on a small scale.
Now the surprise - you see my youngest has always been thrifty, we even say she has her first penny she found on the day of her birth. She handed me over $1,827.89 that she had tucked away in her bedroom. This doesn't included the $12.69 that I owe her for the copper pennies.
Right now she has to decide what PM she wants. She wants gold but I am trying to have her mix it with silver and maybe a 1/2 ounce of gold. In any event I have showed her how to track the spot price and maybe she will make some money or want to invest a little more each year.
I told her though that any future investment would be at full risk of the market price. Edited by mkfarm
07/31/2011 4:11 pm
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Valued Member
United States
397 Posts |
Very good stuff, my parents got me into stocks at around age 10 , my brother and I both now run our own businesses.
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Valued Member
United States
172 Posts |
That is excellent....my parents always taught me to save and invest whenever possible.....i also now run a company and my brother, father, and I are now in the midst of opening up a 2nd company......At only 22 years old my friends are still adding up their college debt and working at the mall for minimum wage with no bank accounts and no credit score.......PARENTS are the key to every kids future!....you are doing an excellent thing teaching her that young and I can guarantee that young girl will make you proud and you can rest assure that you've done everything you could to teach her the ways
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Valued Member
United States
103 Posts |
When I was younger and asked my parents about investing my money into precious metals and stocks, they told me I could, but saving cash is just as good.
And you know, I came here on to this forum with about 10 - 15% of my money invested in PMs.
As I worked my way through business school, with a minor in history, it has become evident.
By the time precious metals become the currency of tomorrow, and the dollar fails, we will be long gone.
Yes, the dollar isn't doing so well. Yes, we're in a crap economy. Yes, other countries are kicking our butt in economics. And yes, we're in trillions of dollars worth of debt.
But a lot of people on here are forgetting - the entire world is in debt to us, and they know it.
Anyone can say what they want, but America, whether rightfully or not, has held world peace together for a hundred years. Every free country, and every country that has any effects on the US economy, and every country we are in debt to, has at one point been saved by none other....than America. America held Europe together, America helped halt Hitler's charge, America thawed the Cold War to a stop, and America gives millions and millions of dollars in aid to struggling countries.
Point is - people on here sometimes believe so much in the demise of the dollar and America, that sometimes they forget no matter how much money we owe, the intangibles that other countries owe us far outweigh the cash we owe them.
Meaning - America, and the dollar, has a long long long way before it experiences death. The dollar is still the most trusted currency around the world. English is still the most accepted language around the world. Even during the Great Depression Japs, Germans, Brits, and French men valued the dollar more than anything.
So while you teach you're daughter to invest and prepare for the demise of the dollar, also teach her not to so quickly doubt the dollar.
In the end, you're daughter could make much more money investing in football cards, or stamps, than she could in precious metals. Precious metals are nice and safe, but as is the dollar.
I know I'll receive so much hate from this comment - but as I expect to from people that have already devoted their life to PMs.
My point: don't so quickly teach Americans to doubt America's currency.
The world owes us much more than we owe them, and the world knows it. Countries no that, and they will not let anything happen to America or its economy anytime soon.
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Pillar of the Community
 United States
667 Posts |
You kind of lost me on that one. I for one am not thinking the dollar will fail, though if you keep $100 dollars for 10 years you still only have $100 dollars.
If you put it in the savings account you might earn 1% or 2 %. The stock market may get you much more or you can not do so well. PM is fun something you can hold and while it may go up or down it will never be worthless.
I'm just teaching her it is ok to put your money into something other than the several piggy banks and jars she had it in. I'm teaching her it is ok to take some risk. I'm teaching her if you don't try something you will never get a shot at getting ahead.
Are their better options than PM's? Yes there are saving bonds and a host of other save investments. My goal is to have her try something and learn, since she can loose money in PM I have covered her investment. It is my kid I didn't want her to take it on the head if the PM market goes down.
But I never told her the dollar is going to fail and I am certainly not looking for it to fail. I have made a ton of money in the PM and I am a very small investor. I have done ok in the stock market.
If I loose it all tomorrow who cares because I am still rich - I have a loving family.
I don't invest in hobby type of stuff such as sports cards, trains etc. Just not my bag and too hard to get what I need unless it is one of the few rare items. Then I have to find a buyer willing to pay what I feel is a good return.
Now my three loves in addition to PM is Stamps, baseball cards and Lionel Trains. My biggest disappointment has been the baseball cards and trains. Strangely I am not really what I would call a coin collector because I don't' buy numismatic coins. However my biggest investment has been beef. It has done real well over the past few years but it takes a lot of work.
In any event it looks like I have something my daughter and I can do together and that makes us closer no matter what the PM market does.
Edited by mkfarm
07/31/2011 9:55 pm
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Valued Member
United States
364 Posts |
Watch carefully what happens when there is a domestic crisis in the United States, like a major hurricane, and listen to the crickets in these other vaunted nations that owe us so much. In this economy, it is every country for itself.
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Pillar of the Community
United States
3670 Posts |
Half gold, half silver of that 1800 plus is the way I would go as well....
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Pillar of the Community
United States
931 Posts |
I don't think anyone is going to even look at you sideways much less hate you for loving your country. We're talking economics here and not a dislike for this beautiful country that we live in. Everyone in this country has a right to their opinion and that is one of the greatest things about America. Now as far as politicians go.......
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Valued Member
United States
172 Posts |
NOTHING is a sure thing......as mkfarm mentioned it is nice to hold your investments and know they exist rather than keep all of your money electronically. The computers now tell you that you have $2000 and that you own 500 shares of a company and in the end you have nothing tangible......no one is right or wrong, but at least he is teaching his youngsters to make their money work for them....obviously you should not invest past your means and having a solid back bone of cash is deffinitly smart I for one have money everywhere....stocks, bonds, mutual funds, 401K, pm's.....and then the cehcking and savings account..........don't put all your money into one basket and hope for the best
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Valued Member
United States
310 Posts |
Look up the word Hubris.
Yes, The USA has been the powerhouse of the world for the past 100 years, maybe even a bit longer. Many a nation has been on top in history. Greeks, Romans, The english, The Spanish, The French. Key word is HAS.
100 Years is not a long time in Human history, 200 or 300 Years is not a lot of time in Human history.
Although, I do believe we still live in the best country on the planet, I'm not ethnically centric enough to believe that we can't fall. Judging from history, we will fall at some point, the question is whither or not this is that point in time.
Representative Democracy is a relativity new concept when it comes to running a nation. While we seem to like it as a population, will it stand the test of time?
Fiat currency is a really new conception and only 45 ish years old in this country.
Is Fiat currency sustainable? Looks like it's ruining a lot of the so called "super powers" of the world at the moment.
PM's have a much longer history or representing wealth and a unit of trade. Not saying that that will always hold true, but I think it has a better track record than Fiat currency at this moment.
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Pillar of the Community
United States
619 Posts |
You're teaching her very well. My parents always held on to their old silver coins, and would add more whenever they could. I recently found their old collection after my father died. After going through it, I got hardcore into collecting.
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Valued Member
United States
103 Posts |
My post was to point out that on this forum there's a lot of talk about "the dollar failing" and the "national debt" and how "PMs will save your future"
My personal opinion is to not allow a child to put 1800 dollars into precious metals
That's not teaching you're child to "risk a little" or "invest a little"
But again, thats just personal opinion.
I'd like to teach a child how to use money when its in his or her hands. You can't walk into a store and impulsively buy something with a piece of gold. But you sure can with a dollar. I'd rather my child learn how to handle dollars first when he or she has it, before investing all of it in precious metals.
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Valued Member
United States
103 Posts |
And my rant about America was because on this forum there is A LOT of hate towards America and the American dollar - about how the dollar will soon fail and precious metals will skyrocket in price.
However, this has been the conversation by bullion collectors for decades. Since the Great Depression, people have been predicting the fall of the dollar any day now. It hasn't died, and it won't for a long long long long time
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Pillar of the Community
United States
667 Posts |
Hey the kid will make a few thousand dollars selling sweet corn by the end of August. A good 75% goes into her bank account then she does what she wants with the rest. She works hard helping to plant and picks all of the corn then sells it on the farm. Then she has three beef cattle that when they are ready will bring another couple of thousand.
When a calf dies she has a 100% loss, if the rain doesn't come then she can loose a high percentage of her sweet corn. Life can be a gamble but if your not willing to take a few calculated risks in life you remain safe and life passes you by.
So $1,800 into something other than her saving account is not going to break her. I was just surprised she managed to save that much, when I was a kid I had a hole in my pocket and what didn't go to the bank went on junk like baseball cards and candy.
The kid works her but off along with school and sports. Farm and country life is different and showing her how to invest her money in different ways is to me a good idea.
I have done it and well I'm retired, if I took the safe route I would still be working full time.
So I appreciate how you raise your kids I like having mine learn things early in life so they can deal with what life will surely give them when they get older and I am long gone.
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Valued Member
United States
103 Posts |
Your mindset is ridiculous, I'm sorry
1800 dollars is a lot, and your playing it off like "if she loses it its fine"
my mom worked as a supervisor in the executive branch of the government for 40 years, and my dad owned a successful food store chain on the east coast.
My parents...to put it simply...had so much money they had no clue what to do with
But never, ever in their lives did they say "1800 dollars? Risking it all away? It won't break him"
Idc if you have enough money to make that up in a second - INVESTING 1800 dollars without any sense of caution or worry is a horrible mindset, and teaches nothing but the foundation of greed - I went to high school with a bunch of kids that would think 1800 dollars is something you can just "risk it all - it won't break me". They took money for granted.
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Valued Member
United States
103 Posts |
Playing it safe doesn't mean you're working all your life at full time. My parents played it safe and were multi millionaires long before they had me.
They still worked after striking wealth to prevent themselves from getting your
"1800 dollars? It won't break him" mindset
1800 dollars could feed a starving kid in Africa for a year - maybe two, maybe three
That is ALWAYS the value of 1800 dollars, no matter how wealthy the person is who has it.
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Replies: 59 / Views: 5,037 |
Posted 07/31/2011 5:50 pm
