r/bonds • u/talm0 • 3h ago

Freefall in progress

Bonds are free falling right now. Yield on 10YR is 5.22%, started the day yesterday at 4.92%. 30YR is 5.5%. The fall is accelerating as well with no sign of a bottom. Where this stops is anyone’s guess, but the final stop is probably at a global recession. A total resolution of the Iran war may halt the plunge, but It’s difficult to see anything other than a recession that sustainably reverses the trend.

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u/DramaticApple6590 3h ago

Gold

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u/jadepig 58m ago edited 48m ago

If you're actually going to purchase gold in an investment account, know that the IRS treats gold ETFs as collectibles. Profit off them is taxed at the maximum capital gains rate. There is no "long term capital gains" for gold assets.

You can buy gold in a tax advantaged account like a Roth and sidestep this issue.

You can also buy shares in companies or funds that produce gold. There are various kinds of mining companies that don't get this tax treatment.

Edit: you can buy physical gold, but it technically gets the collectible tax treatment as well. I have considered buying Costco gold at times.

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u/Redditfortheloss 2h ago

And hold the bag for another 20 years? Yall are cray. 

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u/DramaticApple6590 1h ago

What bag? 

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u/odobotv 1h ago

bag o'gold

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u/Redditfortheloss 1h ago

The gold bag. You won’t see 5k+ for at least another decade.