Storing Silver for the Next Generation

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www.silverseek.com

Dr. Jeffrey Lewis

March 29, 2013 - 9:53am

 

Many parents looking to the future and concerned about their children’s financial security have been reframing reasons for owning silver as a long term investment.

Awareness seems to be growing among parents that an outstanding way to provide for their child's future educational expenses is to employ silver ownership as an investment vehicle.

These college expenses typically include tuition, study materials like books and computers, travel, and room and board costs.

Buying Silver Versus Section 529 College Saving Plans

Silver increasingly looks like an excellent private college saving vehicle, especially since many of the pre-funded college tuition savings plans made under Section 529 of the Internal Revenue Code seems to be crashing and not living up to their investors’ expectations. This issue has already sparked a substantial controversy in the State of Alabama.

Also, holding silver for such well-defined future purposes tends to provide long term investors with a better perspective. This helps them avoid getting caught up in an investment world obsessed with day trading for a short term profit, despite those gains being measured in terms of an ever-devaluing paper currency.

Fortunately, at today’s very reasonable prices, it does not take much money or very long to grow a small collection of silver that will be enough to cover a reasonably priced college education.

Avoiding the Student Loan Bubble With Silver

Obviously, the growing costs associated with education — as evidenced by the trillion dollar student loan bubble with an unprecedented and growing 17% default rate — seems unsustainable to say the least.

A seemingly meager investment in silver made at today’s prices could eventually prevent your children from having to rely on student loan debt where they would end up owing a large amount of money by the time they graduate. This logic might even impress those investors who are not otherwise predisposed to understanding or otherwise caring about the white metal.

For example, making just a $30,000 investment in silver today for your children’s education will most likely grow in value many times over a holding period of 15 years. Silver’s future appreciation will very likely outpace both the consumer price inflation index, and will probably even exceed the higher rate of inflation in college education, which is currently running at ridiculous levels.

Furthermore, if your child ultimately decides not to go to college, or gets a scholarship to fund their studies instead, your prudent investment in silver will provide quite a nest egg to help them start out in life, buy their first home, etc.

Effect on the Silver Market

Certainly, the wider use of silver as part of college savings programs would tend to legitimize the currently misunderstood "silver stackers", who often tend to be characterized as hoarders.

The more small, retail investors who start purchasing silver for long term purposes, such as college savings plans, the more the price of silver should rise over time.

This sort of broad grassroots demand should also tend to lessen the downside pressure that the current manipulators of the silver market are able to exert.