What Is A Treasury Bond?

During these days finding the right investment instrument may be a great challenge. Treasury bonds are a secure instrument issued by the United States Department of Treasury. These are actually debt financing instruments used by the government to borrow money with the main condition to pay at the maturity the initial value known as the principal plus a rate of interest. This rate is usually agreed in writing before the transaction.

The treasure bonds are a secure form of investment and they are often used by the government to finance national projects and even wars. The treasury bonds are known also as T-bonds and they can be bought only from the government or a broker. They have a standard value of 1000 USD and they are issued in 30 years maturity. This means that the investor will get the money back 30 years after the purchase. During this time the rate of interest is paid twice a year.

Compared to the bonds gold may be a great alternative to invest. Mainly because the performance of gold bullion is often compared to stocks due to their fundamental differences. Gold is regarded by some as a store of value, whereas stocks are regarded as a return on value. Gold bullion(coins or bars) may prove to be a great alternative to bonds especially if we take in consideration the price of the gold in the last 30 years(increased from 37 USD/ozt to 1410 USD/ozt).

The main advantage of the treasury bonds is their secure condition as an investment instrument. Though many people prefer to invest in treasury bonds, most of them choose this option as a gift for their grandparents or grandchildren. Security has its price and we can find it in the low interest rates and in the long term money return by waiting for the maturity of the bonds which is 30 years. After the purchase of the bonds, the interest is paid twice a year and the principal at the maturity of the bond(30 years).

Investing in gold can be a great alternative mainly because in the last 30 years its prices increased but also because gold bullion prove to be more reliable and more stable and with significant growth than any currency or stocks. Gold is still a great investment opportunity and a lot of investors prefer to invest in gold bullion rather than bonds as this is more predictable and they retain and even increase their value.

When deciding to invest in the precious yellow metal take into consideration buying Gold Bullion coins with 99,9% purity.

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