Well, I cashed in some savings bonds today.

I finally took the plunge, and sold off a few savings bonds from when I was a kid.

#1 Was purchased Oct 1985 sold @ 260% of initial purchase price
#2 Was purchased Dec 1992 sold @ 151% of initial purchase price

Test

Test
So , this is all good and well , however I started thinking about the investments that could have been made right around the time I was born (1985).

One of the biggest investments talked about right now is precious metal investing, so I will compare gold & silver

Gold spot in 1985 $330oz
Silver spot in 1985 $6.20oz
Gold Spot in 1992 $345oz
Silver spot in 1992 $4oz

Using current spot prices – of $1110oz for gold, and $17.15oz, we find out that since 85, silver has been up 177% , and since 92 it has been up 329%
Gold on the otherhand, would have seen a 236% appreciation since 85, and a 222% appreciation since 92,m giving an average 229% appreciation.

So , having said that, Silver would have been the best investment , then gold, then the bonds, but not by a wide margin.

Now , looking at the Dow Jones industrial average, the gain since 85 has been 631% and since 92 a 223% gain.

Obviously , out of these , stocks would have been the best choice , but let’s go further……

Machine guns since 1985 have gone up well over 1,000% , and would have been a much cooler investment :)

Share and Enjoy:
  • Digg
  • LinkedIn
  • del.icio.us
  • Facebook
  • Google
  • Technorati

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>