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"Backed by the full faith and credit of the U.S. government."
Seems like a good enough reason for me to move a large chunk of cash into them.
^^^^^ I don't expect to see any more 9% I bonds any time soon. Agree with nick about CDs.
You will really love the 50% bonds coming in the not too distant future I suspect.
Waiting to see if I'll get lucky with my bbbyq lottery ticket. A little less than 5.00 for 15 shares. Here's hoping.......
I had a thing up about them at the old place
You are correct on that one. One alternative many have is bond ETFS or funds. On those investment vehicles the loss is immediate while holding the treasury to maturity assure one of getting the principle back but at the agreed upon rate when issued that could very well be below a current market rate in a rising rate environment as you point out. Bear in mind though treasuries can be bought with very short maturities in periods of rising rates. I personally do not have the ability to know what rates will be in the future and many simply buy a mixture of various maturities in order to "ladder" rates.Treasuries are secure, but in a rising interest rate environment will lose $ if you need to sell before maturity.
You are correct on that one. One alternative many have is bond ETFS or funds. On those investment vehicles the loss is immediate while holding the treasury to maturity assure one of getting the principle back but at the agreed upon rate when issued that could very well be below a current market rate in a rising rate environment as you point out. Bear in mind though treasuries can be bought with very short maturities in periods of rising rates. I personally do not have the ability to know what rates will be in the future and many simply buy a mixture of various maturities in order to "ladder" rates.
All in all though considering that the treasuries can be purchased for as little as $100 they should not be beyond the reach of the average person. My bank offers savings accounts at a cost of $3 per month for a $100 account that in my mind equates to what the heck. That's the world today though and it reminds me of the days when the S&Ls paid 5 1/2% on savings while treasuries paid much more. This caused considerable withdrawals from the S&Ls that, along with a few other things, led to their demise.
I know many are strictly PM investors but treasuries have a lot to offer and should be considered in a well diversified portfolio. Today's 30 day rate is 5% + (annualized) ...compare that to my banks charging for having a savings account
$9,868.05 was taken from my bank account on 6/8/2023 for 13 week bill.
$10,000 is to be returned on 9/7/2023, an increase of $131.95 or .05348%
And the $131.95 is ONLY subject to Federal income tax.
So basically a net gain of $100 or so while your money is tied up for 13 weeks. Seems like there are better ways to make money, but maybe my view is too myopic?
I am 70+ yo, if there are any risk free ways of earning more interest/money I am all ears.So basically a net gain of $100 or so while your money is tied up for 13 weeks. Seems like there are better ways to make money, but maybe my view is too myopic?
$9,868.05 was taken from my bank account on 6/8/2023 for 13 week bill.
$10,000 is to be returned on 9/7/2023, an increase of $131.95 or .05348%
And the $131.95 is ONLY subject to Federal income tax.
I don't disagree with you. This is money that otherwise would be sitting in a checking or saving account for emergencies.I don't hate it as part of a diversified plan. I'm sure you have the metals covered and maybe still some RE and/or stocks. That 5.3% is annualized so you made about 1% each quarter.
I love how they promote is as Only subject to Federal tax. WAIT a minute. You are taking MOAR money from me because I was nice enough to fund your debts. Ya, totally fair.
In my opinion... Okay, this is my opinion...
When funds that are trustworthy (not scammy) offer you some percentage... They know that the market will be much worse. And your "investment" will profit them today and give them a profit somehow.
The system is set to take your money. One way or another. I suggest that you read the book I have posted many times before, "The Alpha Strategy". His points are (should be) obvious. Do or do not. Your choice. Enjoy your results.