NPR logo

Gold And Bond Investors

  • <iframe src="https://www.npr.org/player/embed/144076788/144083489" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
Gold And Bond Investors

Gold And Bond Investors

Gold And Bond Investors

  • <iframe src="https://www.npr.org/player/embed/144076788/144083489" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
People who bought an ounce of gold in January have seen a 10 percent gain on the investment. i

People who bought an ounce of gold in January have seen a 10 percent gain on the investment. iStockphoto.com hide caption

toggle caption iStockphoto.com
People who bought an ounce of gold in January have seen a 10 percent gain on the investment.

People who bought an ounce of gold in January have seen a 10 percent gain on the investment.

iStockphoto.com

For most investors, 2011 was a lackluster year. Insured savings accounts offered virtually no interest, NPR senior business editor Marilyn Geewax tells Talk of the Nation's Neal Conan, and stocks mostly moved sideways or down. But there were two big winners: bond holders and gold bugs.

People who invested in U.S. Treasury securities early in the year were smart, says Geewax, because 10-year Treasuries were yielding about 3.4 percent interest in January 2011. Almost one year later, those securities yield only about 1.9 percent. Because those older bonds have become so much attractive, people are willing to pay more for them.

People who bought an ounce of gold in January also are happy today; they paid about $1,450. Now that ounce is worth about $1,600, roughly a 10 percent gain.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.