“A free society is one in which individuals are free to discover for themselves the available range of alternatives.” –Israel Kirzner
Teaching children how to become entrepreneurs early is a great way to set your children up for success. Entrepreneurship teaches children many skills beyond merely making a living for themselves. Children who learn entrepreneurship learn:
- Critical thinking
- Overcoming objections and obstacles
- Business operations and financial management
- Applying knowledge with an eagerness to learn more
For these reasons and more, Jordan and Carrie Eiler of Orange County, California, have started a business, Viking Foundry, with their two children, Noah and Zoe ages 13 and 12, respectively. The business consists of buying, selling, and trading precious metals such as gold and silver in the form of bars, bullion, and coins.
Jordan Eiler comes from a long line of family bankers and investors, so it was important for him that he passes along that knowledge to his children. With the deterioration of the dollar, he wanted to instill basic economic principles in his children, including the value of gold and silver, while creating real generational wealth. I sat down with Jordan and gained some insight into his and Carrie’s vision.
JG: How did you get started buying, selling, or trading gold or silver?
Jordan: We introduced our kids to precious metals and coin collecting by attending different coin trade shows. Not many kids go to these, and most of the people in attendance are significantly older people. When they see children at these coin shows, they are often excited to give them free books, pamphlets, and even free coins! Noah and Zoe became super intrigued by this welcoming industry. Noah became our reference and grading expert, and Zoe became our creative director and inventory specialist. Of course, Carrie and I became the purchasing experts. I’ve always been into precious metals and coins since I was a boy.
JG: Why buy, sell, and trade gold or silver?
Jordan: The dollar is extremely volatile because it is fiat. It does not hold value over the long term the way gold and silver do. When I was growing up, a common Christmas gift was receiving a silver Morgan dollar. Although a Morgan dollar has a legal face value of a single dollar, due to the 90 percent pure silver it can fetch a much larger return in melt or trade. For example, a 1921 Morgan dollar may get anywhere from $28 to $45, and sometimes more, depending on the rarity, mintage, striking mistakes, condition, demand, and so forth. In the US, dimes and quarters made from 1964 and prior have 90 percent silver, so even a 1964 dime is worth around $2 today. And this is just silver, the long-term gains for gold can be even greater. So, we buy the coins while considering the current market prices of the precious metals, and we either sell them at a significantly higher margin or we hold on to them for the long haul.
JG: Why hold on to gold and silver coins for the long term?
Jordan: We could easily sell the coins and make a few dollars, but that is not our ultimate goal. We want to teach Noah and Zoe how to establish generational wealth while understanding delayed gratification. Back when the infamous dot-com bubble popped, the world was for sale, and we saw major wealth redistribution and companies going under. Investors lost significant amounts of money who were banking on short-term quick gains instead of long-term gains. When people buy precious metals through these companies, there is always a premium to pay. However, if you own the physical specimen of gold or silver, you create your own safeguard against those losses. By removing the convenience factors, you tend to secure greater returns.
JG: Why not hold gold or silver in safety deposit boxes?
Jordan: For one, safety deposit boxes have a monthly premium cost, and this cost will probably not outpace the value of the precious metals you’re stashing away. When you buy gold or silver, you’re probably already paying more than market value due to the limited number of companies that are even approved to buy, sell, or trade precious metals—as there is a government-controlled monopoly on that, unless you know a benevolent miner who is willing to sell it to you at cost. Second, there have been numerous instances where police and the FBI have raided safety deposit boxes, seizing the coins, jewelry, precious metals, and all other contents, while the courts have not forced them to be returned and stated that no constitutional violations were made. It is also a known fact that the US government since the 1930s has sent agents to people’s homes and seized what gold and silver they had declared owning.
JG: How does holding on to precious metals create generational wealth?
Jordan: We hold a high value in family. Carrie and I instill as many foundational principles as we can within Jordan and Zoe, including our faith, liberty, and community. This is, in part, why we homeschool our children. Much like the value of money, it requires these principles to be appreciated, or you see the deterioration of it all. By passing along the physical precious metals and coins, along with these inner values, all we can do is hope and pray they do the same for their children and generations to come. If they do, the $1 coin will multiply in value, and the steps will be replicated, creating far more wealth for later and later generations should they need to sell or trade.
JG: What has entrepreneurship taught your children?
Jordan: Knowledge is everywhere, and you can learn for free almost anywhere. Our kids love learning now, and we try to find subjects where they will flourish the most. Carrie and I wanted our children to learn a trade, understand basic economics, and appreciate personal responsibility. People tend to be more responsible with what they earn rather than what is given to them. Since 2020, when we began this entrepreneurial project, our kids have become a part of a growing community of like-minded individuals, learned to make profits, and are now helping others do the same. We are proud of them and their accomplishments, and we believe they will continue to utilize the lessons of entrepreneurship and all they have learned throughout their lives while continuing to pass that along to generations to come.
The post How Two California Parents Are Using Coins to Teach Their Children Entrepreneurship was first published by the Foundation for Economic Education, and is republished here with permission. Please support their efforts.