investing as a gift

[anduril]

So I thought about getting my almost 1 year old nephew some kind of investment for a birthday gift. Could be an I/EE bond, silver proof coin from 2005, etc. Got any ideas about the best type of gift? I'm willing to spend up to about $200 unless there is something that it is such a better investment it'll be worth the extra money.

[gurgeh]

I'm not sure who he'd end up selling the silver to, but government bonds are simple enough to cash in on, and they can be replaced if lost/stolen/destroyed. No idea what will have the best interest rate, but for long-term investment you might want to consider some other factors as well.

[mwgr5]

You could set up a small college fund for him. In 18 years 200 and any other future gifts could compound to a decent amount.