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Which is more safe gold CD or treasuries?
02-17-2018, 08:40 AM
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#1
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Full time employment: Posting here.
Join Date: Dec 2013
Posts: 774
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Which is more safe gold CD or treasuries?
What's in your wallet?
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02-17-2018, 09:04 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Nov 2015
Posts: 2,692
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None of the above.....
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02-17-2018, 09:51 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,951
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Bitcoin. 
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02-17-2018, 10:08 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,496
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A gold CD is safer than an aluminum CD for storing data. https://en.wikipedia.org/wiki/Gold_compact_disc I don't know what that has to do with Treasuries? 
__________________
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"All models are wrong, some are useful." - George Box
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02-17-2018, 10:28 AM
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#5
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Full time employment: Posting here.
Join Date: Oct 2014
Location: Tucson
Posts: 804
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Let me re-phrase for the OP..."What has less risk; gold, CDs, or treasuries?"
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02-17-2018, 10:32 AM
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#6
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Full time employment: Posting here.
Join Date: Oct 2014
Location: Tucson
Posts: 804
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CD's purchased through an FDIC institution will, at the least, re-pay the principal. So, very very safe.
Treasuries are almost 100% guaranteed. Unless the government defaults on them, they are 100%
Gold is not-at-all safe. It can lose its value and someone can steal it (if you are speaking of actually holding gold).
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02-17-2018, 10:36 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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No treasuries at this time. Some CDs that are maturing in a few months and 75 oz of gold that we have had for over about 19 years. We purchased these gold coins at an average of $273 oz. I wanted to dump them when gold went over $1650 oz but my wife is somehow convinced that gold will shoot up to $4000 oz. I am not a gold bug, but I will say that it has outperformed the stock market over the past 19 years.
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02-17-2018, 10:38 AM
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#8
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,726
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 Quote:
Originally Posted by erkevin
Let me re-phrase for the OP..."What has less risk; gold, CDs, or treasuries?"
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There are different types of risk. Loss of purchasing power, theft, loss of absolute value are all examples. perhaps the OP (or someone else) would like to be a bit more specific about the type of risk involved.
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02-17-2018, 10:45 AM
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#9
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Full time employment: Posting here.
Join Date: Oct 2014
Location: Tucson
Posts: 804
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Good Point Michael. I was only referring to loss of principal
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02-17-2018, 11:48 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by erkevin
CD's purchased through an FDIC institution will, at the least, re-pay the principal. So, very very safe.
Treasuries are almost 100% guaranteed. Unless the government defaults on them, they are 100%
Gold is not-at-all safe. It can lose its value and someone can steal it (if you are speaking of actually holding gold).
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Almost...
FDIC insured CDs guarantee both the principal and any accrued interest.
"FDIC insurance covers depositors' accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit."
https://www.fdic.gov/deposit/covered...d.html#insured
CDs carry 100% safety inasmuch as treasuries do. Treasuries are backed by the full faith and credit of the United States government. FDIC insurance is backed by the same full faith and credit of the United States government.
"FDIC deposit insurance is backed by the full faith and credit of the United States government. This means that the resources of the United States government stand behind FDIC-insured depositors."
https://www.fdic.gov/consumers/assis...mbol.html#Full
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02-17-2018, 12:39 PM
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#11
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,362
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I just want to say one word to you.
Plastics.
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02-17-2018, 01:25 PM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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Diversify
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02-17-2018, 01:45 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,353
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CDs and treasuries have the same risk. If the government goes paws-up then the banking system has also collapsed and neither will be paid. Near zero chance of that, though and much bigger issues if it happens.
On thing not mentioned is the $250K limit on CD guarantees. There are workarounds using different institutions, different names on the CDs, etc. but if you're parking larger sums of money, treasuries are less hassle because there are no limits.
Gold is a gamble, not an investment IMO. Better than Bitcoin, but that is not saying much.
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02-17-2018, 01:54 PM
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#14
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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Quote:
Originally Posted by Free bird
Which is more safe gold CD or treasuries?
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CDs and treasuries are more safe than gold.
Quote:
None are in my wallet.
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02-17-2018, 02:08 PM
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#15
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,943
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I'll go with FDIC insured investments. Realistically, if they go, then what's the point.
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02-17-2018, 02:14 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by erkevin
Good Point Michael. I was only referring to loss of principal
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If you have a 1% 10-year note, and inflation is 5% for 10 years, you get the entire principle balance back.
But you really did lose a lot of purchasing power. Keeping your initial investment should be secondary to keeping purchasing power.
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02-17-2018, 03:08 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,088
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5 year Treasury is 2.63%, which is higher than most bank CDs right now. Also no state tax for Treasuries. The rates are really moving up lately.
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02-17-2018, 03:59 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by jim584672
5 year Treasury is 2.63%, which is higher than most bank CDs right now. Also no state tax for Treasuries. The rates are really moving up lately.
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New issue CDs from your brokerage, whether Fidelity, Schwab, or other are paying more. 3-year is currently 2.6%. 5-year will get you 2.8%-2.9%.
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02-17-2018, 04:41 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Sep 2012
Posts: 1,570
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CDs, Treasuries, Gold, safe? None have maintained/enhanced wealth like common stocks.
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You know that suit they burying you in? Thar ain’t no pockets in that suit, boy.
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02-17-2018, 06:02 PM
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#20
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Full time employment: Posting here.
Join Date: Dec 2013
Posts: 774
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I was always told all good things come to an end. Does anyone believe our financial system and our version of capitalism has a solid foundation for sustainability? Or are there flaws coupled with abuses that could create the need for significant changes?
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