Enticing My Son to Save in Gold

One of my two sons in Norway is not on board with my strategy. He thinks he can do better, and I'm worried he'll get himself fleeced at the casino. Instead of getting closer to his goal of buying an apartment, he'll find himself farther away. Gambling is simply no alternative to saving.

Then it occurred to me that my strategy gives me plenty of leverage when it comes to control over my son's investment habits. I can promise him a sweet deal on a future loan. Instead of saving for his first down payment for an apartment in Norwegian Kroner, I can promise to cover it with a cheap loan, provided he saves one half of the required amount in gold. I get the gold as security, and he gets to buy an apartment a few years sooner than he would otherwise get it.

Gold will no doubt outperform the Norwegian Kroner over the next six years, so the deal will illustrate the value of this type of savings. The gold may already have appreciated a lot by the time he's ready to buy an apartment, and it will most certainly have appreciated substantially by the time he gets his gold back three years later in return for having paid down his loan to me. That should teach him the value of my strategy because it will be clear by example that it works to everybody's advantage.

There's also the possibility that it will be one of my other children, rather than I, who provides him with a loan. They have their own apartments. Three years from now, they may be able to borrow more on their apartments. They can then lend this forward to him in return for security in gold, and I'll be no more than a guarantor in case something should go wrong.

There are other possibilities as well. I have a brother who's on board with my strategy, and he has several children. They will no doubt insist on 100% security. But the fact that this is a possibility will further illustrate the strength of this strategy. Gold can be used as security, something speculative assets can't due to their volatility.

I've briefly mentioned this sweet deal to my son, and he was predictably happy about my proposal. He might object to the part about gold rather than Kroner, which I haven't yet mentioned, but I don't expect it to be a major hurdle. The deal is likely on, and I can notch down another victory for my strategy. Not only will I help my son get an apartment a few years earlier than he would otherwise get it. I've greatly reduced the danger of him taking on too much risk. His regular gold purchases will ensure that there won't be much money left for him to waste in the casino.

Sovereign

By Heritage Auctions for image, Mary Gillick for coin - Newman Numismatic Portal, Public Domain, Link