May 20, 2024

Use Gold and Silver to Spark a Teen’s Interest in Finances

Talking to young people about finances can be tricky. If you have kids in your family — or you find yourself mentoring adolescents in your work or community — you’ll want to instill solid financial literacy as early as possible. You’ll want them to understand the value of saving, budgeting and living within their means, investing and building a portfolio, and making careful risks when appropriate.

But long-term economic realities — such as mortgages, compound interest, or retirement savings plans — are often the farthest things from a tween or teen’s mind. How can you impart wisdom without sounding impossibly dull? How can you illustrate the value of their return on investment while inspiring excitement?

Here, we’ll briefly explore why investing in precious metals like gold, silver and platinum (of course, only wisely and prudently through trustworthy bullion dealers like Global Bullion Suppliers) can be the perfect way to introduce financial literacy into an adolescent’s life.

Gold and Silver Can Start as a Gift

First, know that no matter a teen’s social determinants, they’re all dealing with developing brains that make them prone to volatile emotions and risky and impulsive behavior. This affects how we relate to everything we do, including how we earn, spend and save money.

That being said, you don’t have to launch into  a conversation about ETFs or investment vehicles. Instead, start the journey with a gift. Pure silver coins and metallic items (of .999 or .9999 purity) can be stunningly thoughtful, unique and treasured presents, especially for a kid who has it all. You’ll be able to find something attuned to countless interests — whether it’s nature and wildlife, superheroes, cars and motorcycles, musicians, or even Harry Potter.  

Move on to a Starter Kit

If you inspire delight with a precious metal collectible, try a silver starter kit. Starter kits are available from the most professional bullion dealers and are excellent ways to open the door to the world of tangible investments. They’ll usually come with:

  • twenty or twenty-five one-ounce coins made of fine silver; 
  • a tube or small case for safe storage; 
  • tongs or soft gloves for handling; and (sometimes)
  • a tracking card. 

The tracking card can transform a static gift into an interactive investment. It also opens the door to your next conversation.

Show Them the Obvious Return on Investment

Bring up any accurate silver (XAG) or gold (XAU) spot price chart. Find one that spans about twenty years or more. Show them what one troy ounce of gold or silver was worth in 2003 compared to 2023. Let them do the calculations. 

Showing them XAU and XAG charts can also teach them that gold and silver hold steady through real estate market fluctuations and will actually rise when interest rates fall. But also make sure to point out the many ups and down in spot price — while prices continue to rise, investors still need to weather a few storms along the way.

Of course, bullion won’t pay off in terms of interest or dividends. Here’s your opportunity to explain the value of precious metals as way to diversify their portfolio (made up of other stock investments, tax-free savings accounts, retirement plans and so forth). They’re a default-free insulation or hedge against inflation or falling fiat currencies. 

Before you think introducing a young person to investing is a lost cause, consider how a gift of gold or silver, or a silver starter kit, can instill an early appreciation for diversified financial well-being. Share the excitement of owning a tangible asset — and be the spark that inspires a new hobby, passion, or career.

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