| Author |
 Replies: 41 / Views: 3,777 |
|
Pillar of the Community
Canada
1502 Posts |
My wife and i's firstborn just reached a month old. Friends and relatives congratulated us with gifts for the baby boy, some of which are cash. The grandparents will be starting an RESP for the baby and we already have money put aside for baby-stuffs. So, to avoid just spending the gift money, I thought i'd put it into a stack of gold (or other PM) coins and build on it until the kid moves out or gets married. Would be a very nice gift, to pass along a few tubes of gold coins.
I've convinced my wife and myself that this would be a good idea, but I'm now stuck on what to get. I'm considering the following:
- I want it to be the same coin/bar so it's neat and uniform. Should my boy decide to liquidate he shouldn't have to pick and choice which, just how many.
- On the same note it should be affordable enough to purchase relatively often, on the odd payday, birthday, x-mas. This will make it divisible too for the boy.
- It's intended to be a savings and not a collection so numismatic value is a bonus but not the focus. I will likely be tempting/teaching/forcing the coin-collecting hobby on the boy so I don't want him to feel bad about selling this stash should he need the money.
I was thinking fractional gold maple leafs or pandas. Any recommendations?
|
|
|
|
Valued Member
United States
362 Posts |
I think thats a really neat idea, hopefully gold will be worth a lot more by the time he is going into/getting out of college. In all honesty, like my local dealer says, gold is gold... I think the most important aspect is going to be liquid-ability, and dont forget the governement has like a 30% tax on bullion and coins on the profit you get. (Although I dont know how heavily enforced it is, or all the rules) My father, for the past decade or so, has gotten me the silver proof coin sets from the mint, and they are really cool! But I think a silver eagle would be cooler, or a 1/10th oz gold eagle. If I do this, I think 1/10th eagles would be the best way to go if your in the states. I find here that the fractional maples have an extremely large premium, where I can find 1/10th gold eagles for spot +5-10%. If I have kids, I think the first thing I am going to get them a high yielding strong mutual fund (Vanguard's Wellesley comes to mind). Just my Two Cents! |
|
Pillar of the Community
United States
3670 Posts |
|
|
Pillar of the Community
United States
3670 Posts |
Now this coin is so over priced it is beyond ridiculous, but look what a nice example this coin is, as if you look at the same examples which are fantastic by the way which go for a grand or so, are usually pretty scratched up, being real old an all.... http://www.ebay.com/itm/1912-10-Dol...em2c5bec5449Reason I pasted this above, as it is just one amazing gold coin IMO an amny others. One off my all time favs.... Edited by Silverhawk74
11/06/2011 10:36 pm
|
|
Pillar of the Community
United States
3540 Posts |
Diversity is the key to a long term hoard.
With the price of gold, I do not believe I would purchase any....until the peak and fallout occurs in the next couple days to year.
|
|
Pillar of the Community
United States
3670 Posts |
Gold is pushing back up again, as it has went up 12 more bucks to start the Asian market an new week to about $1766. And if it keeps the pace of the last two weeks, it will pass 1800 again here before long. So like mentioned above, not exactly the best buy in window....
However, the money was a gift for the boys future, an by the time he is old enough to understand it, access it, etc., I think we all would agree, even the legendary troll of the dark internet world (Need I really say his three letter name), that gold is gonna be worth waaaaaaaaaay more than 1750 an oz. by that time, say 15 to 20 years from now.....
|
|
Rest in Peace
United States
7075 Posts |
I like your idea to fill tubes of gold coins (or whatever you decide upon) so he doesn't have to choose what to keep, etc. but I think that diversity is the way to go. I think I would start maybe three or four rolls of different sized gold and silver coins.
I guess the thing is to just start with something but to stay flexible. Things can change in twenty years...but platinum is forever! LOL
|
|
Valued Member
Canada
442 Posts |
Congrats! I'd go with the maple leafs. 1/2 oz is a good size with not too high a premium. Either that or some of the Pamp suisse bars. I'm doing the same with my son. Collecting 10 gram bars as thats what the budget allows. Can't go wrong with Pamp suisse or the Perth Mint ones. |
|
Pillar of the Community
 Canada
1502 Posts |
The half indians and half eagles look real nice Hawk, but if it was those I wouldn't be able to resist the temptation of pulling them out as soon as my boy's old enough to understand as oppose to secretly building a stash. The reason I wanted it to be all the same coin/bar was so that it would be a no brainer / custom to just buy whenever there's a bit of extra cash available. I already plan share this hobby with the boy and to that end have got a few of these dinosaur silver coins saved up for him http://cgi.ebay.com/ws/eBayISAPI.dl...280755098286For this stash of a gift when he's of age though I was hoping it be a bit more uniform. A mutual fund account might amount to the same thing but my faith in banks are not as strong as it used to be Vinny's idea for the PAMP Suisse or even Credit Suisse bars would be neat. A box stacked neatly full of the assayed shiny bars for his wedding seems perfect. If only though they were easier to purchase and at lower premiums... Platinum's the same deal, I don't have a stable and affordable source for it. I might end up going with the fractional maples. My wife's shaking her head saying the premium is too high, but I still figure it would be easier to buy many smaller fractional coins frequently as oppose to a few larger coins. Perhaps i'll stick to a fraction, 1/10oz of 1/4oz and not limit myself to maples? |
|
Pillar of the Community
United States
3540 Posts |
Looks like you are sold on the lure of gold.
Have you thought about buying old gold coinage?
|
|
Pillar of the Community
Mexico
1304 Posts |
How about rolls of junk silver? Premiums are low, they are highly liquid, numismatic value is low, you don't have to worry about shelling out for 1/2 an ounce of gold when your finances change.
|
|
Pillar of the Community
Canada
1502 Posts |
indeed I am acloco, even though I own more silver in both value and weight at the moment. Admittedly I have yet educated myself on older, circulated gold coinage except lightly dabbling in British sovereigns. The numismatic world is a huge one and I plan on exploring it with the little guy. I wish I could've bought this coin for him  Took my month old to "see" the coin in hopes that some of that golden goodness would rub off on him. Too bad security wouldn't let us near enough to touch it. We wanted to take a picture with the baby's tiny head propped up beside the giant coin |
|
Pillar of the Community
United States
4008 Posts |
Congrats on the new addition to your family. That is awesome!  Best thing you can give him is your time and an appreciation for love, honesty, loyalty, courage, hard work, justice, and charity. If you can pass those things on, he will do well in life.  As to coins... a difficult question. I like the idea of the 10-20 gram bars. They tend to have lower premiums per oz. than coins, so if you want to maximize the amount of gold in this gift, consider the smaller gold bars as good choices. The 10 gram size is especially interesting. That is just under 1/3 of an oz. of gold. Compare the price and the premium for this vs. 3 of the 1/10 oz. AGE coins. Then multiply that times 20-30 or whatever number seems to fit your longer range plan. In any case, it will be a heckuva nice gift! |
|
Pillar of the Community
Canada
1502 Posts |
Advise taken to heart, Thanks Ed!
Just brokered a deal with the missus too. Looks like it will be bars for now, 1oz to start the collection off followed by 5g or 10g bars in the future.
|
|
Pillar of the Community
Canada
862 Posts |
since you are in canada, I suggest gold maple leaf, it's prettier than bars, and since they are all the same, you won't have trouble choosing which one to sell, it's 9999 gold, tax free. 1/4 oz comes in sheets, 1 oz comes in tubes
|
|
Pillar of the Community
Canada
1502 Posts |
the 1/4oz maples is a good idea. 1oz is too rich for me though. Just hunted down an 1oz RCM gold bar for the boy to get the stack going. Will have to feed the stack with fractionals in the future though |
| |
Replies: 41 / Views: 3,777 |
Posted 11/06/2011 10:30 pm
