As the nation prepares for spending the festive season together once again, many family members are considering what to buy for their younger loved ones this Christmas.
In a UK-wide survey commissioned by The Royal Mint, it was revealed that one in four children’s gifts will be left unused and not played with after Christmas**. In contrast, almost two thirds of parents agree they will be gifting differently in light of COVID-19, with more than half looking to put money that would normally be spent on presents into funds for their children to enjoy later in life.
Gold, and in particular The Royal Mint’s Little Treasures offering, is an increasingly popular option for a meaningful Christmas gift for children. Little Treasures allows parents or grandparents to purchase a set monetary value of gold via an online account. Little Treasures is backed by real, physical gold bullion bars, which are fully insured and stored within The Royal Mint’s vault - one of the most secure locations in the world. Setting up an account takes just a few minutes, and purchases can start from as little as £25 per month.
The performance of gold over the long term makes it an interesting alternative to traditional methods of saving. For example, parents or grandparents who invested £25 a month in gold over 18 years between 2002 and 2020, would have accumulated £13,393 in gold savings thanks to the way in which gold has increased in value. When compared to putting the same amount into a 2% cash ISA, it would have accumulated £6,493, while simply setting it aside with no interest would leave savers with £5,400***.
Andrew Dickey, Divisional Director of Precious Metals at The Royal Mint said: “One of the most precious gifts you can give any child is to help secure their financial future. Little Treasures was designed specifically to help parents and grandparents to grow a golden nest egg for their child or grandchild. The value of gold has increased by an average of almost eleven percent a year for the last twenty years, and is now more popular than ever. Whilst it is impossible to predict what will happen to the value of gold in the future, the scarcity and beauty of gold make it an attractive option for many investors all over the world.”
*Calculated using Office of National Statistics figures for children aged 0-10 (8,820,889).
**The top reasons behind this include the gift being deemed as ‘boring’ (34%), similar items being gifted (33%), the child already owning one (21%) and the present isn’t the latest version of the item (13%).
***Calculated using the last business day of 2019 and the first calendar day of 2020. Based on interest on the cash ISA being paid yearly in month 12, and that money is saved or invested on the first business day of the month. These figures are exclusive of additional precious metal purchase & storage fees.