Recently I came across some Series EE savings bonds. Here’s a brief explanation on how they work:
https://www.fool.com/investing/general/2015/04/15/how-do-savings-bonds-work.aspx
Double my money after a short 20 years! That sounds great!!!
To be fair, since savings bonds are supposed to be very low risk, we wouldn’t expect them to be a vehicle for massive capital appreciation.
Also to be fair, since they are SAVINGS bond, it would be fair to compare them to another vehicle I would consider savings:
We will use an approximate 20 year time frame (18) because that is what is used in the example above, and that is what I found an old shoe box as part of these:
A 30 year series ee bond from 12\2000 looks like this:
The bond did in fact double in value in almost 18 years.
For the purpose of this blog we are not going to factor in inflation.
Or any of this:
https://www.fool.com/investing/general/2015/04/15/how-do-savings-bonds-work.aspx
Now let’s compare to gold.
First, lets do a surface comparison:
Name: Series EE bond <——- weird name, no one really knows what it is
Name: Gold <————- simple name, easy to say and understand
Visuals?
Bond: 2 dimensional, boring, flat
Gold: 3 dimensional, beautiful, vibrant
For a performance comparison:
https://www.goldmoney.com/research/live-prices-and-charts
Remember, this comparison is not supposed to be about price appreciation neccesarily, it is supposed to show two safer savings assets.
I would never compare gold to bitcoin for example, because they serve completely different functions in a portfolio.
In addition, what unit would you even use for gold against bitcoin? I often see the laughable comparison of the completely artibrary measurement of 1 oz of gold vs. 1 bitcoin.
Hilarious.
Read more on that topic here: https://www.goldmoney.com/research/goldmoney-insights/are-bitcoins-now-more-valuable-than-gold
Thinking about this makes me need this:
We can see clearly that over long periods of time gold performs better than any other SAVINGS asset.
And if we are going to own gold.... why not do it in a way that makes us look and feel great!
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Instead of a dusty old bond in a shoebox somewhere...
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