When it comes to gifting children something that truly lasts, gold has always been one of the most trusted and the most preferred choices for Indian families. Gold has an emotional value that no other gift can match and also has a sense of security which is irreplaceable.
In the past, gifting gold usually meant buying jewellery only during weddings or during special occasions. However, things are changing today with parents thinking of creating a ‘Gold Vault’ which is a dedicated, well planned collection of gold investments. This helps them to support their children’s future needs, whether it’s education, marriage or even to start a business.
Here’s how parents can effectively invest in gold for their children and build this modern gifting plan.
Gold prices have historically shown steady growth over the years, and the earlier you start, the better the returns you get over time. Investing early allows the asset time to grow and compound, potentially providing a substantial corpus for future expenses like education or marriage.
Just like you would put aside money for a child’s education fund, you can set a small monthly or quarterly budget to buy gold.
You don’t need to buy large amounts at once as even 1 gram a month adds up significantly over 15–20 years which can really take care of your children’s needs in the future.
Now with multiple digital platforms, you can plan to automate purchases accordingly and avoid the stress of timing the market. By starting early, you spread out the purchase cost and benefit from price averaging.
The concept of buying gold has evolved far beyond visiting a jewellery store. Today, parents can invest in non-physical formats which gives gold-linked returns such as Gold ETFs (Exchange Traded Funds) that allow you to invest in gold without physically storing it.
You can buy gold online starting from as little as Rs.10, stored securely on your behalf. These options are safe, convenient, and often more cost-effective than buying physical gold immediately.
While digital gold is practical, it’s good to have some part of your gold vault in physical form, especially in coins and bars.
Coins and bars are easier to store and sell without the making charges that come with jewellery.
It is also good to reserve gold for milestone occasions so that it carries both emotional and functional value.
To make your Gold Vault more meaningful, connect investments to your child’s milestones such as Birthdays, where you can buy a small coin each year and engrave the year on it.
Similarly, buy a gold gram or coin for academic achievements or other such milestones.
You can also choose festivals like Diwali or use occasions like Akshaya Tritiya to add to the vault. This not only builds the gold fund but also teaches your child the importance of savings and value-based gifting.
The biggest advantage of gold is that it’s a tangible, timeless asset, but that also means it needs to be stored wisely. Use a bank locker for physical gold or trusted third-party vault services. Maintain a simple record of all purchases, whether physical or digital, with receipts and certificates.
For digital holdings like ETFs or digital gold, keep an updated list of account details and nominee information so your child can easily access it in the future. This will ensure the vault remains a genuine gift, not a future burden.
These days, living expenses have increased significantly, and parents today face rising costs, especially in education and healthcare. This is where Gold Vault works as a modern gift, as traditional savings options may not always keep up with inflation. Gold, however, acts as a hedge against inflation. It is also a universally accepted form of wealth.
By creating a structured gold vault, you are giving your child an asset that grows over time. It’s a gift that can be liquidated quickly in times of need. It also carries emotional and cultural significance, making it more than just an investment.
A “Gold Vault” isn’t about giving your child gold just for weddings or grand occasions. It’s about planning ahead so that they have a strong financial cushion when they need it most. With modern tools like digital gold and ETFs, parents have more flexibility than ever to build this fund systematically. It’s like planting a golden tree for the future.
With regular systemic care, it will grow into something strong and valuable that will take care of your children’s needs in the future. A small step taken today will yield wonderful returns tomorrow, making Gold Vault one of the most precious gifts you’ll ever give your children.
(Disclaimer: This article has been authored by Keyur Shah, CEO of Muthoot Exim. Views expressed are personal.)