It’s never too early to start saving for your kids. Starting early can help you do more with limited resources. Smart investments that grow and appreciate over time can turn small savings now into a sizable contribution to an education fund or a trust that your kids can rely on when they become adults.
Starting a fund for your children, there are a few goals you need to achieve:
- A steady rate of return that will grow into something bigger
- Low risk to ensure the money is there when your kids need it
One investment vehicle to consider is silver. Silver can complete a complex, balanced portfolio by providing risk mitigation and steady appreciation. Consider the top reasons to invest in silver for your kids:
#1 Silver Price History
When you want to get an idea for how an asset will do, look to its history. Check out historical silver price charts to see how, overtime, the metal has proven to be a reliable store of value and grown in price. In 1990, an ounce was worth less than $5. Today, an ounce is trading for just shy of $20. The metal is a reliable way to save money with minimal risks.
#2 Silver Is an Inflation Hedge
Inflation will slowly eat away your savings – especially money you put away for the long term, such as an education fund. Inflation is the gradual increase of the price of goods: food, gas, rent, clothes, tuition, electronics. How it’s measured is hotly debated, but the principle is always at work: life gets more expensive. Unless your money is invested well, inflation will render your money worth less years from now.
Silver and gold have both been inflation hedges throughout their history of use. They’re perceived as being close to “real money,” and their relative value compared to other goods has steadily risen or remained stable.
#3 Low Risk
You don’t want to gamble with your kids’ future, but that’s exactly what the stock market can feel like. If you’re setting up an education fund for your kids, there’s also very little flexibility in when you need that money. Once they get into high school, you need to move that money into something low risk and liquid, so that it’s available when it’s needed. The same principle applies to retirement savings – the closer you get to needing the money, the more liquidity you need, so you can sell at a strong point.
#4 Silver Supply Will Shrink
Like all non-renewable resources, some day, the Earth will run out of new silver, and that day could come sooner than you think. Visual Capitalist estimated when the world would run out of each metal at current mining rates. By the 2020s, silver production will dramatically shrink, and the world will effectively run out of major supplies by the 2035 – the year a child born in 2019 would be able to get their driver’s license.
#5 Hard Assets vs. Digital Risks
As more and more of our money becomes effectively digital, there’s a sense of security that comes with owning a hard asset. You can store silver coins and bars in a safe in your home or in third-party storage. Compared to cryptocurrency, silver is secure.
Silver could be the asset you’re looking for if you want to make sure your kids graduate high school with something to help them get started in life.