sovereigns for sons security

[shark]

Hi all

I have been putting away £100 per month for my son( who is 6 now )for his future.Iv come to believe although a good amount has been collected due to inflation eating away at it ,its not a good stratagy.

So i have decided to use the money to buy 4 gold coins a year ,a sovereign,a 1/4 Britannia and two other 1/4 oz gold coins.

now i need some  advice for those gold enthusiasts out there.these coins will be more for investing then collection .

1- should i buy sovereigns from his birth day 2012 till now then every year the new one or should i buy older sovereigns (which i'm learning about ATM and have started collecting)

2-same for the Britannia's from his birth or special years with the different designs.(proof or bullion)

3-the other coins perhaps the QB from now.or Kruger's

I'm still a bit wet behind the ears when it comes to PMs .so any advice  will definitely help on my journey.

Thanx.

 

[terakris]

The birth years are always nice... bullion shouldnt be too much of a problem to get, but being 2012 the proof one is one of the most sought after being a special design. One would hope it would appreciate in value being one of the most expensive modern sovereigns to get today.

Buying a sovereign for every year since his birthday is a nice idea and being a bullion item should not cost the earth. 

Britannias are fine, some like them some dont. I think they are ok and really if this is for a long term investment you just want to get as close to spot price unless you decide to collect the "special" designs in proof form, but that might not be a winning strategy as some years will be more popular than others.

Queens beasts are nice i think as a 1/4 design and seem popular atm.

Just my thoughts, no advice  

[shark]

3 minutes ago, terakris said:

The birth years are always nice... bullion shouldnt be too much of a problem to get, but being 2012 the proof one is one of the most sought after being a special design. One would hope it would appreciate in value being one of the most expensive modern sovereigns to get today.

Buying a sovereign for every year since his birthday is a nice idea and being a bullion item should not cost the earth. 

Britannias are fine, some like them some dont. I think they are ok and really if this is for a long term investment you just want to get as close to spot price unless you decide to collect the "special" designs in proof form, but that might not be a winning strategy as some years will be more popular than others.

Queens beasts are nice i think as a 1/4 design and seem popular atm.

Just my thoughts, no advice  

thanx so much for your thought it all helps.

[Roy]

Similar idea here.

I chose to do both, bullion sovereigns and 1/4 beasts. 

I don't have a pic of the beasts I'm afraid.

The sovs are still easy to backdate, in fact I think Atkinsons stock them all atm.

[shark]

nice  one

thanx

[Pete]

I suggest you start a SIPP for your son and for every pound you put into it each tax year the government will add 25% to a maximum of £2880 resulting in £3,600 to grow every year.
Repeat every new tax year and have the dividends automatically reinvested.
Do some calculations assuming an average growth of 4% but compounded over the next 20 years say, then compare to gold.
It's a no brainer.

[shark]

a very good suggestion i will look into it

I'm just a bit worried with the unstable market and the fact my son wont have access to the funds for 50 odd years.

[Roy]

5 minutes ago, MrGeorge said:

very easy read and nice short book

Just as well.

So many people still fail to understand the purpose of gold.

[Pete]

20 minutes ago, shark said:

a very good suggestion i will look into it

I'm just a bit worried with the unstable market and the fact my son wont have access to the funds for 50 odd years.

You are getting an immediate gain of 25% on the amount of money invested.
Markets will go up and down but overall the trend is what counts and with dividends adding each year it can grow steadily ( exponentially ) with compounded growth.
If worried about the market price why not make quarterly payments rather than a single lump sum.
Yes your son will need to be 50 plus before being able to cash in but what a start !!
Also the SIPP pot grows tax free and falls outside of inheritance tax in later years.
An ISA is an alternative but doesn't get you the 25% government free gift.

[Martlet]

With that amount i'd save half into stocks, as an ISA tracker fund for FTSE100, 250 or 350.  The market tracks or beats inflation over time. Im doing similar for my lad, some gold, some shares and 1/10th he can choose each year (perth lunar monkey first go).

I'm wary of getting anything birth year related as that becomes sentimental and its supposed to be investment right?  Have got a silver Britannia to cover this. 

 

[KDave]

Devils advocate for stocks - In twenty years what will the stock market look like. Demographics are not looking good for continued growth, governments are skint, currency is being devalued which makes it look like stocks are going up, but after taxes it's not always the case.

Taxes may change for both assets. Value will change for both but know one knows which way. There have been a couple of 20 year periods in the past where stocks only just broke even, same with gold, decades of stagnation. 

I go half and half for my two kids, half ounce of gold a year the rest into isas. Only thing not worth saving for them is cash as you say.