Treasury bonds have always been a popular source to preserve capital. They're not only bought by the general public but by institutions as well. For years, the US treasury bonds were considered to be the safest investment option, but now, the times are changing.
A recent study shows that the trend of investing in treasury bonds has been on a decline. On the other hand, there has been a 25 percent increase in investing in gold.
This is because, over time, the worth of a dollar is decreasing. As a result, the worth of treasury bonds is also decreasing. However, the value of one ounce of gold comparatively has stayed higher than that of a treasury bond.
According to Porter Stansberry of the Stansberry Report, people are more inclined towards buying gold as it remains unaffected by inflation, the unreliability of local currency, and global uncertainty. This is not the case for treasury bonds as they get affected by all these factors to some extent or the other.
We're in an unpredictable situation due to the pandemic, tension between China and the US, and other political issues including Brexit and the Middle East crisis.
Not just the US economy, but the world?s economy has shrunk by over 2 percent in the last few years and can take decades to recover.
Therefore, gold seems to be the best investment option as, according to an estimate, it can lead to a 1500 percent increase in value in almost 30 years. The shiny metal recently hit a new high and is expected to continue to grow.