baptism gift advice

[nerotic]

in September there will be the baptism of my two twins... I went to a jeweler friend of mine and I wanted to buy pure 24kt gold to keep for when they grow up... given the still significant amount the person also proposed that I buy a pair of emeralds at His words are very important and will certainly gain a lot of value... he explained many things to me and what the future predicts... $12,000 per carat for this perfect pair... what would you recommend, gold or these two stones?

 

[Autumn in New England]

First, welcome to the boards and congrats on the birth of your twins! Second, those are fantastic stones, to be sure. The price, though seemingly high, is in the ballpark of what I'd expect from this quality and size stones (with essentially no clarity enhancement, which is big). If you're looking for the better investment, however, I'm always going to suggest gold.

 

[LilAlex]

@Autumn in New England is more knowledgeable about gems than I am. I agree that those are lovely. I am not clear on the GRS "insignificant" vs. others' "no oil" so there is that. At that quality, minor subjective factors -- including how vivid within the vivid range and how perfectly cut for light return -- can have a huge impact on value. For Burma ruby and Kashmir sapphire, there does not appear to be an upper limit to what someone may be willing to pay at auction. No one here can tell where these fall in the excellent-to-amazing spectrum.

You are paying a price premium for the matched pair. Unless you expect them to go into a pair of earrings, I see no compelling reason to get a matched pair.

Some of this is perhaps cultural. $100K US in gold (at $80/g) is > 1 kg (!) and that is an impressive gift that anyone can appreciate. Enough for a dozen really heavyweight chains (or one rapper curb-link ). Only a select few will appreciate the value of the emeralds. Moreover, for the giftee to realize that value down the line will take a lot of effort, specialized knowledge, and, most likely, an auction. No buyer will spend that amount on stones on offer from some rando. So you are signing this person up to a life of stewardship of these hard-to-value resources and a potentially fraught liquidation process.

Last, if you really are buying a gift for decades hence, neither is a good choice, imo. This chart ends a decade ago but the data would not change much (note that the y-axis is a log scale, and "real return" factors in inflation):



Gold is not bought as an investment. It is a "store of value" and perhaps a "hedge against inflation." There are intervals over which gold has performed extremely well but they are of course unpredictable.

If you really want to help these kids decades from now, buy $100K of a total US stock market index ETF with an expense ratio < 0.1% and hold it at a brokerage like Schwab.

EDIT: I see they are your kids. Do what I wish I would have had -- buy yourself something lovely and let your kids associate it with you and all the good memories of you and then pass that down. My Dad left nothing tangible of value but had a couple good-but-not-great 1-ct diamonds (that we found in a safe deposit box) -- one per child -- that he bought 40 years before his death for reasons like yours. I wish, instead, that he had a simple pair of gold cufflinks or something I could wear and remember him by. I just made a pendant with "my" diamond (thank you, Inken) but it makes me think of me and Inken and PS members who helped with the design (!) but not so much him.

 

[Autumn in New England]

All sound advice and good points, @LilAlex! I thought it might be a good idea to mention GRS's clarity enhancement scale. It goes: none, insignificant, minor (what most of us shoot for), minor-to-moderate, moderate, prominent. Insignificant means that they may have detected some slight residues on the stone's surface or even superficially within the stone's fissures. They have to mention it on the report for integrity's sake, but it really has very little bearing on the stone's transparency. In other words, if the residues were removed, you really wouldn't notice any difference in clarity. Very rare to have Colombian stones of this quality, this clean, in this size, and matched, with only "insignificant" fracture filling.

 

[nerotic]

You have been very clear and I thank you very much... I sincerely believe that I will opt for the classic gold bars... precisely because in 20 years they will have the freedom to choose anything with a figure that will certainly be revalued in the fight against inflation.. . thank you

 

[Autumn in New England]

You have been very clear and I thank you very much... I sincerely believe that I will opt for the classic gold bars... precisely because in 20 years they will have the freedom to choose anything with a figure that will certainly be revalued in the fight against inflation.. . thank you

Good luck to you and the wee ones!!

 

[pearlsngems]

But...may I suggest an alternative? A 529 account (or whatever similar account is available where you live) for education. The costs of higher education are so high now and I can't imagine how much higher they will be by the time these kids are ready for college/grad school.

 

[smitcompton]

Hi,
Since you have two little ones, I'd opt for a diversified treasure trove. Buy one emerald and one gold bar. You will be able to construct your own graph in 20 yrs. Come back and let us know which investment did better. When I was a baby I was gifted USBonds. My parents loved those gifts.

Congrats on the birth of your twins. Stay in touch here. I love hearing from young moms or dads.

Annette