Acceleration has its benefits, but the ideal solution would be to accelerate the educational aspects for the child without accelerating the social side.
1. Gifted kid with other gifted kids, with individualized coursework (ex: Davidson Academy in Reno, Nevada)
2. Gifted kid with other gifted kids, with standardized but accelerated coursework (ex: a g&t magnet program)
3. Gifted kid in general population, with individualized coursework
4. Gifted kid accelerated several grades ahead
5. Gifted kid remains in general population at normal grade level for age
And 3, 4 and 5 are really toss-ups depending on the personality of the child