Capital Guaranteed | Ramblings of an e-trader

Monday 7 September 2009

Capital Guaranteed

My friend sent me a text message asking me if it is worth to invest in national bonds. I didn't explore the returns or compare bonds with other form of investments because I don't like investing in bonds because our capital is not guaranteed, so I told him so.

My friend is rather keen in buying bonds and does not mind that capital is not guaranteed because of the fairly high returns but the thing that's stopping him is having to queue up at the bank at three in the morning and only able to purchase a limited number of units since he is below 55 years old. Yes, bonds are THAT popular.

I told my friend that if I have his money, I would rather buy gold to keep. As you could see, gold price has been very steady throughout generations and no matter what happens, there is still value in gold, and I certainly couldn't say that about bonds and some of my friends could attest to that!

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