Save Gold for Your Children – and Stay in Control

A child’s ISK becomes the child’s money on their 18th birthday. Many parents would rather decide for themselves, and that’s where gold can be an interesting alternative.

A tax-free ISK for children is tempting, but has a downside

Since the turn of the year, every individual in Sweden can save up to SEK 300,000 completely tax-free in an investment savings account (ISK) and endowment insurance (KF) combined. This tax exemption also applies to children. It means that savings opened in the child’s own name can grow without being hit by the annual standardised tax, as long as the total value stays below the limit.

It sounds like the obvious choice for a family’s long-term savings. Yet many parents and relatives choose not to save directly in the child’s name.

The explanation is simple. Money in an ISK in the child’s name legally belongs to the child from the very first krona. When the child turns 18, they become a legal adult and immediately gain full control of the account. For some 18-year-olds, that’s not a problem. But the money the parents worked hard to put together, intended for a driving licence or a first home, can in one stroke go towards something completely different if the teenager so wishes.

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What does it cost to stay in control?

We’ve put together a simplified calculation. Let’s say you save SEK 1,000 a month for 18 years, with an assumed return of 6 percent per year.

If you have already used up your own tax-free allowance and save in an ISK in your own name, with this year’s ISK tax of approximately 1.065 percent, the final amount will be roughly SEK 42,000 lower than if the same savings had been completely tax-free in the child’s name.

That is roughly what it “costs” to stay in control in this example. The actual difference will of course depend on returns, the tax rate and how much you already save.

A common alternative is endowment insurance in the parent’s name, with the child as the beneficiary. That way, you decide when the money is paid out. But you still pay ongoing fees on the funds, and the savings count towards your own tax-free allowance.

Gold is a way of saving for your children that you control

At Tavex, we meet more and more parents and grandparents who want to save for their children in a different way. Many choose physical gold.

When you buy gold in your own name, you are the one who owns it. You decide when the gold passes on to the child, whether that’s at 18, at 25 or when it’s time for their first home.

Physical investment gold isn’t held in an account. That means you pay no annual standardised tax and no management fees. Nor does the gold take up any of your tax-free allowance for ISK and KF.

There are two things to be aware of. When you sell gold at a profit, you pay 30 percent tax on the gain. And as with all physical purchases, the buying and selling prices differ. If you give the gold as a gift, the child takes over your acquisition cost.

A gold bar on every birthday

A lovely way to build up savings for a child is to buy a little gold on recurring occasions, for example on birthdays. The child gets something tangible to look forward to, and you spread your purchases out over time.

Here’s how it could have looked for a child born in 2008, if you had bought SEK 1,000 worth of gold on six of their birthdays:

• 2008, birth: gold cost about SEK 200 per gram, which gave 5 grams
• 2010, age 2: about SEK 300 per gram, which gave 3.3 grams
• 2013, age 5: about SEK 260 per gram, which gave 3.8 grams
• 2016, age 8: about SEK 340 per gram, which gave 2.9 grams
• 2020, age 12: about SEK 500 per gram, which gave 2 grams
• 2024, age 16: about SEK 800 per gram, which gave 1.25 grams

In total, you would have spent SEK 6,000 and received just over 18 grams of gold. With a gold price of around SEK 1,300 per gram at the end of October 2026, that corresponds to a metal value of around SEK 24,000.

The example is based on approximate historical spot prices and does not take premiums or tax into account. It shows what has happened in the past, not what will happen in the future.

How the gold price has developed over the past 18 years

The gold price in Swedish kronor has more than sextupled since the 2008 financial crisis. One gram of gold cost about SEK 200 back then. Today it’s around SEK 1,300.

Had you put 10 grams of gold in a drawer when your child was born, for about SEK 2,000, the same gold would today have a metal value of around SEK 13,000.

The path, however, has not been a straight line upwards. In 2013 the gold price fell sharply, and this year the price has dropped considerably since January’s record. There have been long periods when gold has stood still or fallen.

That’s why it’s important to be clear: past performance is no guarantee of future returns. The gold price can both rise and fall, and you may get back less than you paid. Gold works best as a long-term complement to other savings, not as a replacement for them.

Start saving gold for your children with Tavex

At Tavex, you’ll find smaller gold bars and gold coins that are well suited to saving for children, buying a little at a time. You can start with a couple of grams and build on it with every birthday.

You’re welcome to visit one of our stores or our online shop. We’ll be happy to help you find the right size for your savings.