There is a very good reason that financial advisers don’t recommend I-Bonds, and it has nothing to do with profit margin.
New York, NY (PRWEB) May 14, 2013
A recent PBS article endorsing I-Bonds has at least one investment firm commenting. A noted economist wrote an article for PBS.com in which he recommended U.S. Treasury Series I Savings Bonds. The writer claimed that I-Bonds offer “the ultimate in long-run liquid financial security" and wrote that financial advisors almost never mention I-Bonds because, at least in part, “there is no profit margin in...I-Bonds." U.S. gold coin dealer Gold Coin (GoldCoin.net) vice president of marketing Stewart Lawson said that he thought the piece was "disturbing" considering how low interest rates are right now.
“Real inflation is at 10+ percent thanks to the Fed and here we have a federally-funded organization telling people to buy I-Bonds when interest rates are in the negative. Everyone knows that as rates rise new bonds will pay more, devaluing the bonds you already have," Lawson said. “I'm sure the writer is a very nice guy, but I just don't see any use for I-Bonds right now. There is a very good reason that financial advisers don’t recommend I-Bonds, and it has nothing to do with profit margin,” he added.
“The writer did get a couple of things right,” Lawson continued. “The inherent risk of stocks does not diminish with time, and the risk factor has actually grown exponentially the last few years. And stocks are definitely not a hedge against inflation. However, neither are I-Bonds.”
Lawson recommends that investors concerned with inflation and preserving purchasing power invest in hard assets like gold and silver, as well as energy and natural resource stocks. “The economy moves in predictable cycles. Stocks, real estate and commodities. In ten years or so interest-bearing accounts will be paying double digits and stock markets will be the place to be,” Lawson said. “Right now, it’s hard to ignore the safety of gold coins, and with the recent sell-off gold coin prices are very affordable.”
Gold Coin (GoldCoin.net) has over two decades of experience advising household investors on smart physical gold and silver investments and gold coin IRA and 401k plans. They buy and sell all types of precious metals and offer free home delivery. For more information or a free “Gold Coin Starter Kit,” visit http://www.goldcoin.net or call 1-800-425-5672 today.