Bullion for the kids

BTW, I think its great that you're doing this...we're just suggesting ways that might make more sense...or cents...for them.

 

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Another reason I think you should Mercury Dimes is because they bring a numanistic value as well. If silver bombs then they still have a collector value. Plus if your LCS lets you cherry pick you might be able to pull some decent dates. I go to a flea market in my area and I go to a certain guy a lot who will sell me whatever he has for well under spot if I buy in bulk. This past summer I hit him up a few times for a bunch of Mercury Dimes for about $1.85 each key dates and all.

 

I think it's a great idea. It will teach them the value of investing money, and should there be a hyperinflation event they may have the only real money around. I think it's also important for them to learn about money as they grow up. Let them earn and spend it a bit. Then they will learn that if they want to do something or get something they need to plan ahead a bit.

 

I think most people didn't read the OP's listed budget constraints or you would realize that the money to buy rolls of coins at a time to avoid premiums is not there. Op you could also consider giving them Mexico 1 peso coins 1957-1967 they are a big ole coin 10% silver roughly 1.6 grams and can be found easily in your price range little premium over spot versus one gram rounds and the kids couldn't spend them.

 

I would suggest a weekly trip to the LCS and let the children dig through the "junk" silver dime bin to pick one out.

 

True, but the "silver" value in these is illusory, most smelter would not even buy them for any price.

An alternative would be the same as our dime example, but with world coins. Buy some canadian half dimes or dimes, or other small silver world coins. Same price, but they shouldn't be able to spend them.

Btw, I agree with Petro, great idea and we think you are great to do it, we are just offering alternatives.

 

True dat...but all he would have to do is take a trip to the shop...maybe 2 times a month and buy a few silver dimes each time. Or save up for a few months and buy a roll. Or as jmon said, take them with him once a week or every other week and pick out a silver coin or two. Everyone has had great suggestions. The point is that paying so much of a premium for the grams and 1/10th oz is not getting ahead....even in the long term.

 

Thanks for all of the suggestions. I was unfamiliar with those 1 Peso coins.. but I have to admit, they sure are ugly. So far the idea I like the best is going with Canadian silver dimes. I hadn't thought of that, even though I believe I own a few of those somewhere.

Also I don't believe the smaller gram and 1/10 ounce bullion coins are a bad investment as long as they are bought in bulk to save on shipping. And for a while, that is exactly what I was doing. I would buy 10 or 20 at a time. Yes, I realize that each coin has a higher premium over spot. But that only matters if you are selling them to a smelter. If you sell them on eBay, craigslist, etc, then the premium is regained at that point. All of the copper bullion coins are in pretty much the exact same situation right now. They are worth what somebody else is willing to pay, which at the moment is above melt value.

An yes, the purpose of this exercise was to teach the kids about investment and inflation. However, it isn't going so well right now. My 9 year old may or may not grasp the concept. The younger (adopted) child is 6 and definitely doesn't grasp it. But I believe that in time they will. I think my 9 year old already has about $150 worth of silver. When she gets a bit older hopefully it will make more sense to her.

I'm going to look into getting some more Canadian dimes and maybe even quarters. So after they have 3 dimes I could trade them for a quarter or something like that. Hopefully i won't have to worry about them trying to spend them at the store.

 

I like the Canadian dime idea. It may be easier for them not to spend. Hopefully you can find a source where you can get them cheap as I am not sure how many America LCS have them in bulk.

 

The Canadian dime idea was just an example. Tell your LCS what you want, and he can get all kinds of world coins made of silver the size of a dime or less. OP, like I said I think its wonderful what you are doing, but why not mix in some geography lessons as well? Get small silver coins from all over the world and when you give your kids a new one they can find the country on the map. Any dealer worth his salt will get you for around bullion value all kinds of interesting small silver coins from around the world for maybe $2-3 a piece.

 

investing for kids

If you really want to teach kids about investing / business / inflation try Cashflow for Kids. It does a good job of putting money management in terms pre-teens can understand. The 6 y.o. won't get it, but the 9 y.o. will, if my nephews are any indication.

 

Dear OP,

No offense, but to think your going to get your premium back on Craig's List or Ebay on fractional onces of silver is sticking your head in the sand. Craig's list is for loser's looking to rip you off & Ebay is going to charge you at least 12%. So, you paid a huge premium on the purchase of the silver grams & then will have to pay an even bigger one to sell them on ebay.

cheers

 

Dear adric22,

Now my reply to your original post & please Do Not take offense to any of my thoughts.

"spending at walmart" Why would a 6 & 9 year old be spending money at Walmart without adult supervision? They should not be there alone and as a parent you should at least be present to see what they are buying & spending.

"$2 per week per child" to invest in silver on top of their allowance per week and this is straining your budget? & the mrs. is starting to question the money?....sounds like arguements to me & the young children have know idea why mommy & daddy are fighting.

A 6 & 9 yr. old have no concept of what is going on. You give them an "extra" allowance but their not allowed to spend it. Kids that age do not & will not grasp that concept. Allowances are to be spent!

Want to give them an extra on top regular allowance (which they can spend?) which they will really appreciate....how about a fun size candy bar or telling them that you love them & cover them with hugs & kisses...no mom and dad discussing budgets/money. Instead of straining the budget, have as much payed off as possible & not be paying interest on anything if possible. More money in the end for your kids. Debt free!!

AnyWho, want to save money for them & give them a sense of monetary responsibility....go to your local bank & open up an account for each. Make sure you /wife are co-account owners. They can tap the money when their 18?...21?
Take them in & let them Deposit their extra $1, $2 per week in the savings book. They will be so impressed & think their poop don't stink...at least for awhile. At least your gonna get a 1/2% on the money instead of paying high rates on little silver purchases that are going to cost you on both ends.

Sure, you want them to enjoy your hobby & take interest in it, but it will happen or it won't. Don't push it. Financial stability is much more important for your kids & yourself rather then buying a few grams of silver a week.

All My Best

:rollling: