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The Price Of Gold

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Pillar of the Community
United States
2168 Posts
 Posted 02/15/2012  6:08 pm  Show Profile   Bookmark this reply Add angel2004 to your friends list Get a Link to this Reply
Yes Bonds once were a fairly good investment between safety and rate. And the ease of getting them. Now I think its PM and land for the most part

Rest in Peace
biggfredd's Avatar
United States
9104 Posts
 Posted 02/15/2012  6:43 pm  Show Profile   Bookmark this reply Add biggfredd to your friends list Get a Link to this Reply

Quote:
They say that the US Treasury will soon be offering bonds with negative interest rates. Say what? A guaranteed loss on your investment and people STILL buy them? Wow is about all I can say to that!


No "soon" about it, they started last year. Treasury Inflation-Protected Securities (TIPS) brought less than face.

The idea is that you pay $10,000 for a bond that pays back $9,687.50, plus inflation, at the end of five years. You lose 0.625% a year, but if inflation is 5%, your net is 4.375%.

Why anyone is willing to accept such a deal from a gubmint known for fudging the inflation figgers is another question.
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Ed_B's Avatar
United States
4008 Posts
 Posted 02/16/2012  10:49 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply

Quote:
Why anyone is willing to accept such a deal from a gubmint known for fudging the inflation figgers is another question.

Must be the financial equivalent of the PT Barnum effect.

Know what you mean about those fudged inflation numbers, though. I had about $100k invested in a TIPS mutual fund about 6 years ago. It did OK. Then the numbers started getting flaky and always in the government's favor, so I sold the fund and pocketed the cap gains that it had. Soon thereafter, it tanked. Although people have made money in some bonds / bond funds for the past few years, I have avoided them except for a small amount in a GNME fund.
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poboxw's Avatar
Canada
1502 Posts
 Posted 02/17/2012  12:27 am  Show Profile   Bookmark this reply Add poboxw to your friends list Get a Link to this Reply

Quote:
PT Barnum effect

So true. I would venture to say that the majority of those of us in the business known as investing falls prey to the PT Barnum effect. Takes a lot of smarts, knowledge, and perhaps most important, self control and confidence, to not believe only what we want to believe in.
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Ed_B's Avatar
United States
4008 Posts
 Posted 02/18/2012  7:28 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply

Quote:
Takes a lot of smarts, knowledge, and perhaps most important, self control and confidence, to not believe only what we want to believe in.

Indeed so, Poboxw. Plus, we should never discount the value of plain old luck in our investing. That comes in two flavors... good and bad!
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