You already have some good suggestions on not putting college money into precious metals. Precious metals are speculative at best. They should only be used as a small percentage of an overall portfolio, not as a sole investment. Trying to predict what gold and silver will be in 10 years is magic. Historically, the stock market has outperformed precious metals over the long term. There was a huge surge in gold in the 2000's due to the volatility of the market. Can you hope/expect for that to happen over the next 10 years? Your guess is as good as mine.
You are better off putting money into some 529 plan into a solid bond mutual fund. You can continue to put money into it over the next 10 years at very low costs to you. With PM's, you are going to pay a fee to get in and out. Just because the spot price for gold is $1200, doesn't mean you will buy it for that or sell it for that. Typically, you are going to pay a 2-3% premium (or more for smaller amounts) and lose 2-3% on it when you sell. Then there is also the shipping costs as well.
If you had your heart set on gold or silver, how do you plan to invest in it? An ETF? Actual metal? If you buy the metal, you have to consider storage. Also, silver is going to take up way more bulk due to its lower price per weight.
I'd even suggest doing a "trial run" and buy some small amount of silver and/or gold. The link provided is a source I have used (he deals with smaller amounts).
None of the above. You pay too much attention to ads from precious metals sellers and the idiots who give investing advice on the internet.
Gold and silver are static - they don't pay interest or dividends. Their prices are completely reliant on a complex set of uncontrollable factors that are way over the head of typical investors. One of the big factors that has been and will continue to affect gold and silver prices is the actions of the Federal Reserve, specifically the quantitative easing program (QE). If you don't know what QE is, you have no business investing in gold or silver. If you look at the historic price of gold and silver, over the past 10 years, the driving forces were: (1) demand in China, but that ship has sailed, China's growth has settled down considerably, (2) panic over the US economy which initially boosted prices in 2007-2009, but that effect is long over, and (3) the Fed's QE program, which is widely credited for artificially boosting the price of stocks and commodities.
QE is the only factor of the three that still exists, and that is winding down over the next year or so. As QE unwinds you will see gold fall even more than the 30% it has already fallen from its highs. I predict $900 or even $850 as the bottom, and it will sit there for years/decades. That means if you put $10,000 in gold or silver for your kid, in 10 years it will be worth $6,500 or so.
The best thing you can do for your kid, especially if you are looking to put money in over time, is to open a 529 account which is like an IRA for college savings. Within that, invest in index mutual funds, something like the Vanguard 500 index fund.
http://www.collegesavings.org/index.aspx
Gold AND silver are all but guaranteed to LOSE value over the next ten years, silly goose....
Think it through, now....what does gold "do" to generate any additional worth? NOTHING...
Turn OFF the AM Radio, and start making regular contributions into a tax-deductible College Savings Plan for your State...
Do NOT put it in gold or silver. the primary advantage of these is leverage, of which is most beneficial to traders. I would highly encourage you to put it in an S&P 500 or Russel 2000 index fund, or as others have pointed out, the best from a tax-standpoint would be to put it in a 529 plan.
Gold is the better option, just make sure you get a good deal
I would put it in the stock market it will beat both gold and silver.
Bad idea. There is no reason to think that either metal will be worth more in 15 years, and during those 15 years, the gold in a vault does not create more gold. There are some good reasons to think that gold will be worth less in 15 years.
I know you like the idea of investing in a thing like gold rather than in an abstract idea like stock.
If you invest in a company, the company might not be worth more in 15 years, but there's a very good chance the the company will be earning money in those 15 years.
Put the money into certificates of deposit (CD's) at a bank. They are guaranteed by the federal government (FDIC). They will make barely any interest, but there is zero chance of loss. With gold or silver, there is a good chance they will be worth less in 15 years.
When the economy is good, gold and silver go down because people would rather own stocks. When the economy is bad, people have an increased preference for gold and silver, driving up the prices. Do you think the economy will be worse than it is now? I doubt it.
If you are investing for your child's education, choosing a tax-disadvantaged investment like gold or silver instead of tax-advantaged vehicles specifically designed for education savings like a 529 plan is completely brain dead. I would bet at 10:1 odds that on an after tax basis, an investment in any random 529 plan outperforms a gold or silver investment.
Further, PM's have this nasty volatility that is hard to manage as the known time that you have to withdraw the funds for a defined expense comes near. The last thing on Earth you want is to have your kid's college funds invested in a 30% vol investment 2 years prior to college. "oops...sorry son, but JP Morgan manipulated the silver market so you have to work at the drug store and tell Harvard that you can't accept their offer".
PM's are completely inappropriate for education savings plans.
GOLD
I'm gonna sell these after 10 years..for my son's education.
