How to invest in gold for your children

Investing in a child’s financial future is a wise and responsible thing to do – and can never be started too early on in their lives. The more you can do now to set your children up for financial security and success later on, the easier it will be to support them in becoming independent adults when the time comes. There are many different types of investment opportunities to choose from. However, there are several advantages to choosing to invest in gold bullion or coin on behalf of your children.

Why choose gold?

Gold is a physical commodity; a precious metal that has retained value and interest for thousands of years. It is durable and robust, which makes it easy to store and keep in good condition over the longer term. It requires minimal maintenance and can be stored easily enough, so long as you avoid damp conditions and contact with corrosive materials. Gold also needs to be stored carefully to ensure that it is protected against theft or getting lost.

It is also financially robust and able to withstand fluctuations in the market – if the value does go down, it is extremely likely to go back up again at some point in the future. Furthermore, gold is far more resilient against changes to inflation than paper money, the value of which can come crashing down. Gold is also recognised as a worthwhile investment all over the world.

How to get started

The good news is that investing in gold for your children needn’t cost you a fortune. Gold can be purchased in smaller denominations according to what you can afford. Start with a small investment and build this up over time as you are able to commit the money. Gold coins and bars vary in value and so there is a lot of flexibility around how much you can buy each time. A private company can help you decide what type of gold to buy and how much to invest in at a time.

You might like to invest in gold along a certain theme to add interest to the process and build up a more interesting collection. Some examples of this include royal themed coins, medals depicting animals or flowers, gold struck in a particular year, such as the year of their birth, or coins from one or more different countries. This can also help promote eagerness in adding to the collection, encourage children to read up on the subject and identify which new coins to buy.

Tell your children that gold is a long-term investment that should be carefully stored and only cashed in when it is absolutely needed. The allure of getting their hands on the value straight away should be tempered by the indisputable long-term financial security that having some gold coins or bullion in storage will bring. The current climate of rising inflation, soaring fuel prices and increases in costs of living shows how volatile the banking system can be. Gold prices are repeatedly shown to be stable and protected from much of the volatility of an ever-changing market.

Cashing in the investment

When the time comes for the gold that you have invested in for your child to be cashed in, however, this is a straightforward process. Keep a note of the contact details of the private company that sold you the gold in the first place. In most cases, the company will be able to buy back the gold at the market price. This is by far the easiest and most secure way to release the value contained within your gold investment and turn it back into cash.

Other things to remember is to make a note of where you have stored the gold and tell others about it too. It’s no use burying it in the garden if only you know it is there. Especially if you are unable to pass the message on when the time comes to dig it back up. Mention the gold in your Will so that your instructions for where it goes and who should inherit it are clear. If you are investing for multiple children, you will need to spell out how the coins or bars should be divided and how much each child will receive.