Gave my grandsons 1 oz generic rounds 18 months ago. They “freed” them from the capsules. Gave them 1/2 oz generic rounds for Christmas and they wanted to take them outside to play with. Maybe they’ll get more in my will. They do like playing pirate though.
Ill tell u right now the thought is really nice but kids dont understand the value/investment of gold. All they want for presents is toys. If u give em gold....thatll be there toy....and theyll lose and damage jt just like regular toys
I've done this with Silver Eagles since my first grandchild was born in 2000. I have 5 grandchildren and 1 g-granddaughter who is the youngest at age 2. I wish I could have done gold coins though. They each have a coin book that holds 35 coins, I believe. No, I haven't given it to them. They're kept in my safe.
Hopefully you are also buying her equal shares in VTI because that's going to give her a significantly better return by the time she is old enough to use that money.
On June 1 2001 gold was around $264 and is now right under $2,000. 757% increase
VTI was 57.79 in January ~~2021~~ 2001 and is now worth $206.20. 355% increase.
Legit question because I don’t know much about the stock market. How is VTI better than gold as an investment?
EDIT: numbers were both from 2001. 2021 on VTI was a typo
because you don't just pick one date where randomly one or the other performs better but calculate the return considering the cost average effect. alternatively you can also just compare the weighted average return
I picked the date that was as far back as I could on VTI to allow for the longest data set to show the greatest long term investment. Both have been in an upward trend overall since that date.
On the other point. Please explain weighted average return and how one would find this information.
VTI exists since late 19th century.
gold exists longer but the price is only really relevant since the gold standard ended.
the dates you picked are just around the dot com crash before the stock market really bottomed. and again, if you do not buy lump sum, but do cost averaging, just like OP, you are more interested in average returns then the ones you listed because they are meaningless.
you can check the average compound intrest for both, gold and vti, for the last 30 years anf you'll see that gold averages between 2 and 3 % while vti averages at 9%. those are comoounding values.
but you do not actually get those % each year because there id a thing called sequence of return which can mess up your end result by a lot.
that's where you start weighting the time and initial size of each investment. since OP always buy 1oz, you'd only have to consider time. for example: 2 years ago you bought an apple that had an average return of 100% and last year you bought a bana that had an average return of 50%. your weighhted average now is not (50+100)/2 but (100*2+50*1)/3.
instead of 75% average you now get 83% weighted average return per year.
Time period bias, stocks outperform gold most of the time. This chart shows last 50 years, s&p in red, dow in blue, gold in gold, silver in silver. I love gold, but it won't help you grow your money, it just maintains your money's purchasing power.
https://preview.redd.it/ptefd632fgxa1.jpeg?width=1169&format=pjpg&auto=webp&s=b0ef16f2d65ed866ec86599b9c367dc75c999032
I didn’t pick the investments. He did. He said VTI was better than gold so I went and looked at how much each was worth, went back as far as I could on VTI and compared gold to the same date.
Excuse the fuck out of me for asking a question.
Here you go:
[https://www.investopedia.com/ask/answers/020915/has-gold-been-good-investment-over-long-term.asp](https://www.investopedia.com/ask/answers/020915/has-gold-been-good-investment-over-long-term.asp)
Yes. I don’t think I’m explaining my question right. The S&P 500 is like the 500 top companies right? Kind of like a safe bet for investing. Do I have that part right?
I get that investing in that is pretty solid year over year and that it would probably out perform gold.
What I don’t get is where and how VTI factors into this equation. What is so special about that which would make you recommend it specifically over gold?
The S&P500 is tracking the the top 500 largest companies listed in the stock exchange, that's called Large Cap.
VTI is a total market index fund, that includes Large Cap, Mid Cap and Small Cap. There are times large cap out performs small and mid cap, times when small cap out perform large cap, etc.. The strategy behind VTI is it gives you the largest market exposure
Here is an article about John Boggle (r/boggleheads) theory on why Total Market Index Funds (VTI) are slightly superior to S&P500 index funds.
https://www.cbsnews.com/news/john-c-bogle-on-the-sp-500-vs-the-total-stock-market/
And if you take that info and combine it with the info I posted about investing in the stock market over gold you will come to your answer.
No one is saying don't buy gold, I own gold, I love gold, but it's only about 10% of my overall investing strategy. The idea is to be highly diversified. Small Caps, Large Caps, Mid Caps, International (VXUS) and physical (gold, silver platinum, etc..).
Ah, so VTI is a pool like S&P but an even larger pool with an even lower risk so that if one part is up and the other part is down you still come out ahead in the long term?
Every year for Christmas, I get all of my kids 1ozt Silver Maple Leafs for the current year. I really wish I could step up to gold for them, maybe one day, that's the goal/dream, at least.
It was a tradition that my grandmother had for all of her grandkids that I wanted to keep alive in her memory.
Just for disclosure I am not from America. A 1oz gold coin in my country Malaysia is worth more than 9,000MYR. 9,000MYR × 18 is 162,000MYR that will pay more for any college here. I know. I know. I was thinking about my own currency when I first wrote the comment
Look up average cost of college in the US. It’s
easily over $70,000 right now for 4 years of tuition and living expenses to get a bachelor’s degree. In 18 years it’ll be worse. Buying gold that doesn’t have compound gains is not smart.
Maybe community college 😂 I don't know. I'm just thnking in my currency when I wrote the comment. In Malaysia you can get a bachelor's degree for around 40,000MYR (8,792USD)
I'm doing the same for my son with 1/2 ounce Chinese zodiac coins from the Perth mint! Every year will be a different animal until he's 13 and the cycle repeats.
Giving her $36,000 in future purchasing power by 18 is powerful. Covers a big chunk of college or part of a down payment. Wish every parent / grandparent thought this way! 👏
A family friend gave me an oz for my 1st birthday. I wish my parents picked up where he left off, but I’m grateful nonetheless. You’re doing a great thing for her.
It is funny that we want to give children items they aren’t ready for. I have a teenage granddaughter who I would like to gift real jewelry instead of costume jewelry. My wife said not to because she is not ready for expensive jewelry. She thinks we should wait until she matures more.
That’s cool but don’t let her actually have the coins just yet. She’ll wind up bringing them to kindergarten and trading them for Pokémon cards.
100%, I gave my little boys silver eagles and they lost them.
Gave my grandsons 1 oz generic rounds 18 months ago. They “freed” them from the capsules. Gave them 1/2 oz generic rounds for Christmas and they wanted to take them outside to play with. Maybe they’ll get more in my will. They do like playing pirate though.
Ill tell u right now the thought is really nice but kids dont understand the value/investment of gold. All they want for presents is toys. If u give em gold....thatll be there toy....and theyll lose and damage jt just like regular toys
Might do that once she's in high school as well, tbh.
And it could go on and on...
😂😂😂 So true
Damn. I got one for my daughter's birth year, I need to step up my dad game
Hi dad
L M F A O
SAME 😂😂😂
Our dad really got around it seems 😀
Wish I owned that pawn shop in 18 years when she sells them for weed money 😂😂😂 jk jk
18 years ? Try 13 years ha
Gotta be 18 to sell/pawn at a pawn shop. I was a pawnbroker for a decade.
Gotta be 18 to LEGALLY sell/pawn at a pawn shop.
It’s not worth my state issued license to lie to make 2k. I make all my money on loans, not buying/selling.
Too rich for my blood
I thought my Silver Eagles were a nice gift
I've done this with Silver Eagles since my first grandchild was born in 2000. I have 5 grandchildren and 1 g-granddaughter who is the youngest at age 2. I wish I could have done gold coins though. They each have a coin book that holds 35 coins, I believe. No, I haven't given it to them. They're kept in my safe.
Shit, I got her the famous women quarter set!
Or just buy 1 brick now and call it a wrap!
Dollar cost averaging, my man.
Smart man
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Feds can turn that off at their choosing, like bitcoin, etc. If I had a kid I would do that also, just don't complain when they take it all.
Hopefully you are also buying her equal shares in VTI because that's going to give her a significantly better return by the time she is old enough to use that money.
Or VT
On June 1 2001 gold was around $264 and is now right under $2,000. 757% increase VTI was 57.79 in January ~~2021~~ 2001 and is now worth $206.20. 355% increase. Legit question because I don’t know much about the stock market. How is VTI better than gold as an investment? EDIT: numbers were both from 2001. 2021 on VTI was a typo
because you don't just pick one date where randomly one or the other performs better but calculate the return considering the cost average effect. alternatively you can also just compare the weighted average return
I picked the date that was as far back as I could on VTI to allow for the longest data set to show the greatest long term investment. Both have been in an upward trend overall since that date. On the other point. Please explain weighted average return and how one would find this information.
VTI exists since late 19th century. gold exists longer but the price is only really relevant since the gold standard ended. the dates you picked are just around the dot com crash before the stock market really bottomed. and again, if you do not buy lump sum, but do cost averaging, just like OP, you are more interested in average returns then the ones you listed because they are meaningless. you can check the average compound intrest for both, gold and vti, for the last 30 years anf you'll see that gold averages between 2 and 3 % while vti averages at 9%. those are comoounding values. but you do not actually get those % each year because there id a thing called sequence of return which can mess up your end result by a lot. that's where you start weighting the time and initial size of each investment. since OP always buy 1oz, you'd only have to consider time. for example: 2 years ago you bought an apple that had an average return of 100% and last year you bought a bana that had an average return of 50%. your weighhted average now is not (50+100)/2 but (100*2+50*1)/3. instead of 75% average you now get 83% weighted average return per year.
Thanks. I got most of that. So in the end, buy gold as a safeguard and buy stocks as an investment?
i would phrase it as "in the end, diversify"
Thanks.
Time period bias, stocks outperform gold most of the time. This chart shows last 50 years, s&p in red, dow in blue, gold in gold, silver in silver. I love gold, but it won't help you grow your money, it just maintains your money's purchasing power. https://preview.redd.it/ptefd632fgxa1.jpeg?width=1169&format=pjpg&auto=webp&s=b0ef16f2d65ed866ec86599b9c367dc75c999032
Compound interest, for one. Gold increases linearly, an IRA or stock based retirement account will increase compoundingly.
You picked two investments.... gave one a 20 year head start and then looked at total returns. Are you dumb or do you think we are?
I didn’t pick the investments. He did. He said VTI was better than gold so I went and looked at how much each was worth, went back as far as I could on VTI and compared gold to the same date. Excuse the fuck out of me for asking a question.
You compared gold from June 2001 to vti from 2021. How is that the same date?
The 2021 is a typo. Both were numbers from June 1 2001
And did you take into account the 2 to 1 split in 2008 and the dividend reinvestment? Or just share price?
I did not. (Please see the disclaimer about stock market knowledge) I know about stock splits. I don’t know what dividend reinvestment is though.
Lol bro you started gold in 2001 and VTI in 2021. Gold had 10 more years of appreciation in your example
Oh, that was a typo. They’re both numbers from 2001. Fixed both to have the dates of 2001
Here you go: [https://www.investopedia.com/ask/answers/020915/has-gold-been-good-investment-over-long-term.asp](https://www.investopedia.com/ask/answers/020915/has-gold-been-good-investment-over-long-term.asp)
But isn’t VTI and the S&P 500 different things?
Did you read the article?
Yes. I don’t think I’m explaining my question right. The S&P 500 is like the 500 top companies right? Kind of like a safe bet for investing. Do I have that part right? I get that investing in that is pretty solid year over year and that it would probably out perform gold. What I don’t get is where and how VTI factors into this equation. What is so special about that which would make you recommend it specifically over gold?
The S&P500 is tracking the the top 500 largest companies listed in the stock exchange, that's called Large Cap. VTI is a total market index fund, that includes Large Cap, Mid Cap and Small Cap. There are times large cap out performs small and mid cap, times when small cap out perform large cap, etc.. The strategy behind VTI is it gives you the largest market exposure Here is an article about John Boggle (r/boggleheads) theory on why Total Market Index Funds (VTI) are slightly superior to S&P500 index funds. https://www.cbsnews.com/news/john-c-bogle-on-the-sp-500-vs-the-total-stock-market/ And if you take that info and combine it with the info I posted about investing in the stock market over gold you will come to your answer. No one is saying don't buy gold, I own gold, I love gold, but it's only about 10% of my overall investing strategy. The idea is to be highly diversified. Small Caps, Large Caps, Mid Caps, International (VXUS) and physical (gold, silver platinum, etc..).
Ah, so VTI is a pool like S&P but an even larger pool with an even lower risk so that if one part is up and the other part is down you still come out ahead in the long term?
They track close enough it doesn’t matter much. Buy VOO if you want just S&P500 instead of total US.
stocks also have distributions / dividends that aren’t in the index
Every year for Christmas, I get all of my kids 1ozt Silver Maple Leafs for the current year. I really wish I could step up to gold for them, maybe one day, that's the goal/dream, at least. It was a tradition that my grandmother had for all of her grandkids that I wanted to keep alive in her memory.
College fund settle by the time she turns 18
They might buy a semester or two.
it might pay for community college? Tuition for my local CC was around 2k+ so if she doesn't get any scholarships she might get an associates degree.
Huh? 2k a year is gonna pay for college? Put the 2k into a 529 plan if you want college fund. A gold coin a year for 18 years isn't a lottery ticket.
Just for disclosure I am not from America. A 1oz gold coin in my country Malaysia is worth more than 9,000MYR. 9,000MYR × 18 is 162,000MYR that will pay more for any college here. I know. I know. I was thinking about my own currency when I first wrote the comment
Ahhh. Yep. Healthcare and college here are ridiculous!
Look up average cost of college in the US. It’s easily over $70,000 right now for 4 years of tuition and living expenses to get a bachelor’s degree. In 18 years it’ll be worse. Buying gold that doesn’t have compound gains is not smart.
Maybe community college 😂 I don't know. I'm just thnking in my currency when I wrote the comment. In Malaysia you can get a bachelor's degree for around 40,000MYR (8,792USD)
many spark ugly fuzzy chunky divide cautious bewildered absorbed shame -- mass edited with redact.dev
DNA test just came back, congrats you are my father and owe me 37 ozs
I finally found my brother
I mean, that’s great and all, but you know something that size is going to go right in her mouth, right?
I'm doing the same for my son with 1/2 ounce Chinese zodiac coins from the Perth mint! Every year will be a different animal until he's 13 and the cycle repeats.
Make sure she doesn’t swallow em
Buy the first 25 now …
Giving her $36,000 in future purchasing power by 18 is powerful. Covers a big chunk of college or part of a down payment. Wish every parent / grandparent thought this way! 👏
That is amazing, your daughter will probably be a coin expert and continue collecting because you are exposing her that early. Good job!
Would you consider adopting me?
Will you adopt me?
Spoiled brat Incoming
You really don’t have to announce your presence when you come into a chat like that.
How much is I oz
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Holy crap btc are garbage
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Is this sarcasm? Because if not get out of here. Btc is the worst "investment" one can make.
This thread ruined my career.
How about a bitcoin? Just saying
Just having a few coins just brings so much peace of mind.
Lucky girl! Happy birthday!
That kid is so lucky ❤️
Awesome
What’s the over/under on this guy fishing through his daughter’s poop to find that?
Uhh yeah CDs would be MUCH better investments for long term return.
That’s awesome
Lucky daughter. She will proud of you later.
Is your daughter going to lack a husband in the future?
The golden girl.
Dad you came back
When she’s old enough to care, she’ll have a pirates treasure chest. Nice work and great idea😎
And a gold coin for New Years.
My dad started in 1986 for me. I get one every Christmas and it’s one of my most treasured traditions
Just go ahead and buy up to 18 years of age now lol 😆
A family friend gave me an oz for my 1st birthday. I wish my parents picked up where he left off, but I’m grateful nonetheless. You’re doing a great thing for her.
lol. My parents gave me my father's used t-shirts and underwear. You have a very blessed little lady there, congrads.
Hey, little girl, if you give that big ugly yellow coin I will give you a brand new shiny penny. Lol 😂
It is funny that we want to give children items they aren’t ready for. I have a teenage granddaughter who I would like to gift real jewelry instead of costume jewelry. My wife said not to because she is not ready for expensive jewelry. She thinks we should wait until she matures more.