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<div type="image" title="Save yourself the trouble of buying physical gold this Diwali, and instead, go digital with Gold ETFs!" height="900" width="1200" msid="114507055" hostid="261" sizebytes="439216" caption="&amp;lt;p&amp;gt;Save yourself the trouble of buying physical gold this Diwali, and instead, go digital with Gold ETFs!&amp;lt;/p&amp;gt;"></div> Ah, <keyword id="18712" type="General" weightage="20" keywordseo="Gold" source="Orion">gold</keyword>! The shiny metal that's been making humans lose their minds since time immemorial. And yet, from <keyword id="23657519" type="General" weightage="20" keywordseo="king-midas" source="keywords">King Midas</keyword> to our neighbourhood aunty and even our moms (and secretly dads), everyone seems to have a super soft spot for the <keyword id="6384667" type="General" weightage="20" keywordseo="Bullion" source="Orion">bullion</keyword>. But here's the kicker: right now, gold prices are breaking all records on their upward trajectory! As of today, prices of 24k carat gold have passed the Rs 80,000 mark per 10 grams. And if experts are to be believed, this train isn't stopping anytime soon! So, as shiny as gold might look, adding even a bit of its glitter as we start decking up for the festive season might not be so easy on your pockets. But let's admit it—we love our gold and can't live without it. No wonder India is the second-largest consumer of the yellow metal in the world, only behind China. Such is our fondness for the metal that the <keyword id="20195223" type="General" weightage="20" keywordseo="world-gold-council" source="keywords">World Gold Council</keyword> had to up our 2024 annual demand forecast to 850 tonnes, up from the previously estimated 750 tonnes. However, our love for gold isn't just about looking fabulously embellished and blinding people with its bling. Indians also see gold as a long-term, trusty investment, supporting our other hard-earned assets, especially when high <keyword id="22195" type="General" weightage="20" keywordseo="Inflation" source="Orion">inflation</keyword> rates pull our returns down. After all, while inflationary pressures generally weaken the purchasing power of our regular paper money, gold is built differently. When the world is buckling to inflation, gold gains value during these times. This is also why it is considered a solid hedge against inflation. With <keyword id="188" type="General" weightage="20" keywordseo="Diwali" source="Orion">Diwali</keyword> and <keyword id="4067" type="General" weightage="20" keywordseo="Dhanteras" source="Orion">Dhanteras</keyword> knocking at our doors, the inflation demon continued to bother India like a guest who refused to leave. Just last month, the Consumer Price Index (CPI) stood at 5.49%, much higher than the anticipated levels. Moreover, the diverging policy stances among central bankers worldwide, growing geopolitical tensions, tough job markets, and extreme weather events are only adding to the uncertainty. In such economically uncertain times, what should your gold strategy be this festive season? To buy or not to buy, that is the question. Well, let’s get to it. <h2><keyword id="20050894" type="General" weightage="100" keywordseo="gold-etfs" source="keywords">Gold ETFs</keyword> to the rescue</h2>See, buying physical gold jewellery is certainly a flex, but also a financial fuss. First, you pay a heavy amount to buy gold. Not to mention all those extra, hefty jewellery-making charges. And then you pay even more money to keep it safe in a bank locker, lest it get stolen. But what if we tell you that you can own pure 24k gold, minus all these frills? Welcome, Gold ETFs (Exchange Traded Funds). Simply put, gold ETFs are like the cool cousins of your traditional gold investments. Instead of stashing gold bars under your mattress like those maniac millionaires we see in Bollywood films, you can now invest and trade in gold through the stock market. It's basically buying units of an <keyword id="19930506" type="General" weightage="20" keywordseo="etf" source="keywords">ETF</keyword> on the stock exchange that directly mirror the ongoing domestic prices of gold. Generally, gold ETFs are equivalent to 99.5% pure physical gold bars, and each ETF unit denotes actual, one gram of gold. And let's face it, who would not want that golden glow in their lives? Gold ETFs have witnessed an over seven-fold surge in their AUM (assets under management) in just the last five years. From Rs 5,613.22 crore in September 2019 to Rs 39,823.50 crore in September 2024, gold ETFs seem to be in-thing. Inflows in gold ETFs have shot up by a whopping 2,695% over the last 5 years. In September 2019, gold ETFs had garnered a mere Rs 44.11 crore. Compare that to the inflows worth Rs 1,232.99 crore gold ETFs received last month. Talk about growing, or glowing popularity! In fact, in just 2024, inflows in gold ETFs have surged by nearly 88% since the beginning of this calendar year. From Rs 657.46 crore in January 2024 to Rs 1,232.99 crore in September 2024, good old gold is never out of season. <h2>So, how do these ETFs work? Should I invest in them now?</h2>All you need is a Demat account. Log into your account, choose the gold ETF scheme you want to invest in, and voila! You’re now a bullion-aire! All your gold ETF units will be stored in this account. Then, you can buy and sell gold ETFs just like you buy shares—in real-time. So, if gold prices inch upwards, which is where gold is currently going, the value of your ETF units will also rise in lockstep. Ashwini Kumar, Senior Vice President and Head of Market Data at ICRA Analytics, says that of late, gold ETFs have been increasingly gaining popularity among investors due to the liquidity, safety and transparency they offer. "With the escalating global geopolitical tensions boosting the ‘safe-haven’ appeal of the bullion, investors are preferring to park their funds in gold ETFs as compared to investing in physical gold, as there is no hassle of storing it. The heightened activity in gold ETFs is also driven by the prospects of an imminent further interest rate cut by the <keyword id="20078761" type="General" weightage="20" keywordseo="u-s-federal-reserve" source="keywords">U.S. Federal Reserve</keyword> in the coming months,” he added. “Investors with a short- to medium-term investment horizon may consider investment through gold ETFs. A buy-on-dips strategy here may help investors capitalise on a temporary correction in prices. Also, given the current market dynamics where equities are showing mixed trends, a modest, 5-10% allocation to gold may serve as a hedge against inflation and market volatility, which may help you balance risks in an optimum manner,” Kumar noted. <h2>Wait, there is no dearth of options</h2>But if ETFs make you go WTF, there’s always digital gold. You can invest in the yellow metal without actually physically holding it for as low as Rs 1. The best part? You can buy or sell this gold 24 X7 seamlessly via multiple apps without having to pay storage costs. On your behalf, your gold is stored in insured vaults by the seller. But remember, digital gold continues to remain unregulated territory in the country, where you venture at your own risk. In 2021, market watchdog SEBI had even asked its members to desist from selling digital gold. Then there are gold mutual funds and the Sarkari SGBs, or sovereign gold bonds. While gold mutual funds invest primarily in gold ETFs, SGBs are issued by the RBI and are also a reliable substitute for holding physical gold. However, with the RBI currently putting brakes on issuing SGBs, investing in them is out of the question. Plus, you should only get your hands on SGBs if you're in for the long haul. Apart from a 2.5% p.a. interest, you don't have any yearly earnings from them. Moreover, no premature redemption is allowed before 5 years, and you'll have to wait a good 8 years to maximise your returns. <h2>Okay, tell me about returns</h2>In contrast, the seventeen gold ETF schemes currently present in the market offer an average one-year return of 29.12%. Stay with it a little longer, and you can end up with returns worth 16.93% and 13.59% over a 3- and 5-year period, respectively. If you look at it, these returns are comparable with the returns delivered by actual, physical gold. Data from Value Research indicates that gold, as a commodity, has delivered returns worth 27.24%, 16.53%, and 14.18% over a 1, 3, and 5-year period, respectively. So, worth investing, right? <h2>What are the risks?</h2>See, markets are as unpredictable as monsoons in Mumbai. One significant market correction can wash away your returns, and one sunny day or an upswing can leave you wallowing in wealth. Since your gold investments are directly linked to these markets, you should steel yourself up for some volatility. Plus, international gold prices are in dollars. So, if our rupee decides to take a nosedive, your returns might look a bit tarnished. Also, know that your ETF might not always perfectly mirror gold prices, which is also known as a tracking error. It's like expecting your Zomato-ordered food to look exactly like the picture on the menu—it's close, but not quite. Then there’s the taxation bit. The budget this year brought down the LTCG (long-term capital gains tax) on gold ETFs from the previous 20% to 12.5% (sans indexation). LTCG is what you pay if you sell your ETF units after 12 months. If you sell your gold ETF units within a year and make handsome returns, the tax you’ll have to pay will be equivalent to your income tax slab rate. <h2>Is gold just for old?</h2>A survey by fintech firm Moneyview thinks otherwise. Per their findings, over 85% of the 3,000 respondents it talked to considered gold to be a valuable asset for wealth preservation, with its intrinsic value and historical performance continuing to drive consumer confidence. Particularly, young investors in the age group of 25–40 years are also investing in gold via both physical and digital ways to build wealth for retirement and other long-term goals. So, young or old, everyone’s going for gold. So, this festive season, with gold prices going north, investing in gold can add that much-needed glitz to your financial attire. But remember, don't go overboard since gold isn't exactly a high-return-yielding asset. But whether you're a seasoned investor looking to diversify or a newbie trying to make their way in the markets, investing in gold offers you a glittering safety cushion. Just remember, while gold can make your portfolio shine, it's your smart investment decisions that truly make you golden. Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified, and registered advisors for professional and personalised financial advice.

Simply put: Can investing in gold this festive season add the much-touted Midas touch to your investments?

The new series of Sovereign Gold Bonds 2021-22 will be opened May 17-21, 2021, and the issue price during the subscription period shall be ₹4,777 per gram. The settlement date under the Series I scheme had been fixed for May 25. The government, in consultation with the Reserve Bank of India, has decided to allow discount of ₹50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors, the issue price of the Gold Bond will be ₹4,727 per gram of gold. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/go-air-has-filed-for-a-3600-crore-ipo-at-a-very-desperate-time/articleshow/82626097.cms" data-type="tilCustomLink" target="_blank">Go Air has filed for a ₹3,600 crore IPO at a very desperate time</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/markets/news/heres-why-the-spike-in-inflation-in-the-us-may-worry-markets-in-india/articleshow/82597218.cms">Here's why the spike in inflation in the US may worry markets in India ⁠— but experts say don’t panic yet</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/whatsapp-responds-to-privacy-criticism-by-alleging-other-apps-like-zomato-ola-aarogya-setu-zoom-google-and-other-apps/articleshow/82570897.cms">WhatsApp responds to privacy criticism by alleging that other apps and tech companies also show disdain for user privacy</a>

There is an online discount on the new Sovereign Gold Bond Scheme opening on Monday priced at ₹4,777 per gram

Our experts answer readers' investing questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/investing-rating-methodology" class="not-content-link" target="_blank">here's how we assess investing products</a>). Paid non-client promotion: In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank">our partners</a>. Our opinions are always our own.<ul class="summary-list"><li>A bond is a loan you make to a company in exchange for income over a fixed period of time.</li><li>Bonds allow individuals to diversify portfolios while mitigating investment risk.</li></ul>Although stocks tend to garner most of the excitement behind everyday investing, bonds are another major asset class that offer a valuable way to diversify your portfolio. <h2>What is a bond?</h2><a href="https://www.businessinsider.com/personal-finance/what-is-fixed-income-investing" rel="noopener">Bonds are fixed-income securities</a> that represent the ownership of debt and act as loans between a company or government and an investor. They're safer and less volatile than stocks, offering predictable, but often lower returns.A bond is a loan from a lender — like you, the investor — to an issuer, like a company or government. In return, the issuer agrees to pay the principal of the loan, plus interest, by the end of a fixed period of time.Example: Let's say you buy a 10-year bond from company XYZ with a face value of $1,000 and 5% annual interest. In exchange for the loan, company XYZ promises to pay you $50 each year over the decade. After 10 years, the company pays you back the original $1,000 in full. Unlike stocks, which represent equity in a company, bonds represent the ownership of debt. In the instance that a company goes bankrupt and investors are paid back, debtholders are prioritized before shareholders, making bonds a safer investment than stocks.Bonds are issued by governments in need of financing for day-to-day operations, and businesses looking to grow and develop their businesses but lacking the funds necessary for equipment, research, payroll, and more.<h3>Bond terms to know</h3><ul><li>Coupon: The annual interest rate on a bond that is paid to investors in exchange for their loans.</li><li>Face value: How much the bond will be worth at maturity, or when the investment fully matures. It is also called "par" or "nominal" value. </li><li><a href="https://www.businessinsider.com/personal-finance/bond-yield" rel="noopener">Yield</a>: The bond yield is a measurement that shows the return you can get on a bond. The simplest way to calculate a bond yield is to divide the bond's coupon by its current price. </li><li>Maturity date: The time by which funds must be repaid to the investor. It is the target date for which the borrower must pay back the loan in full.</li><li>Rating: Rating agencies assign ratings to bond issuers based on their creditworthiness. These ratings can help you understand the risk. "Investment-grade" bonds, or bonds that hold a low risk of default, have a rating of Baa, BBB, or above.</li></ul><h3>When do bonds mature?</h3>A bond's term to maturity is the length of time a bondholder receives interest payments and correlates with an investor's risk appetite. Usually the longer the bond's term to maturity, the less volatile its price will be on the secondary market and the higher its interest rate. Bonds are grouped into three main categories, based on how soon they repay investors: <ul><li>Short-term bonds: One to five years</li><li>Intermediate-term bonds: five to 12 years</li><li>Long-term bonds: 12 to 30 years</li></ul>The duration of the bond measures both how long it will take an investor to be repaid the bond's price and how price-sensitive the bond is <a href="https://www.sec.gov/files/ib_interestraterisk.pdf" target="_blank" rel="noopener">in response to changing interest rates</a>. "One of the disadvantages of bonds is that they are very affected by interest rates, so if you buy a long-term bond, you're going to be more subject to prices going up and down based on interest rates," says financial planner <a href="https://www.cfp.net/initiatives/increasing-awareness/cfp-board-ambassadors/luis-f-rosa-cfp" target="_blank" rel="noopener">Luis Rosa</a>.Higher durations usually mean the bond price is more likely to drop as interest rates rise, which indicates higher interest rate risk. A bond with a three-year duration, for example, will drop 3% as a result of a 1% increase in interest rates, since bond prices typically change about 1% opposite to interest rates for every year of duration.<h2>Types of bonds</h2>Bonds can come from many different kinds of issuers. Generally speaking, there are four main categories of bonds:<ul><li><a href="https://www.businessinsider.com/personal-finance/what-is-a-corporate-bond" rel="noopener">Corporate bonds</a> are issued by companies looking to grow, and appeal to businesses because they often offer lower interest rates than banks.</li><li><a href="https://www.businessinsider.com/personal-finance/municipal-bonds" rel="noopener">Municipal bonds</a> are issued by states and municipalities to finance everyday operations and projects like schools, highways or sewer systems. </li><li>Government bonds are issued by the US Treasury on behalf of the government, and are also referred to as sovereign debt. They're typically used to finance new projects or government infrastructure.</li><li>Agency bonds are issued by government-affiliated organizations and typically pay slightly higher interest rates than US <a href="https://www.businessinsider.com/personal-finance/treasury-bonds">Treasury bonds</a>.</li></ul>Rosa advises investors to consider their risk tolerance when deciding which type of bond is right for them. "If you are risk averse, you might want to invest in something a bit more secure, like US treasuries that are backed by the federal government, and if you're in a higher tax bracket, you might want to consider municipal bonds, where you can get some tax-free income," says Rosa.<h2>Bond credit ratings </h2>In the same way that credit scores indicate an individual's creditworthiness, bonds are evaluated by agencies to assess the issuer's ability to make interest payments consistently and repay the loan by its agreed-upon maturity date.Ratings are based on the issuer's financial health, and bonds with lower ratings are known to offer higher yields to investors, to make up for the additional risk they're taking on.The three main bond-rating agencies are Moody's, Standard &amp; Poor's (S&amp;P), and Fitch. Higher-rated bonds, also known as investment-grade bonds, hold a rating of "BBB" or above. This means the bond is viewed as less risky because the issuer is more likely to pay off the debt. The tradeoff, however, is often a lower yield. <h3>S&amp;P, Fitch, and Moody's investment-grade ratings</h3><table style="border-collapse: collapse; width: 100%; height: 105px;" border="1"><tbody><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Meaning</td><td style="width: 12.5%; height: 21px;"> Moody's</td><td style="width: 25%; height: 21px;">S&amp;P</td><td style="width: 12.5%; height: 21px;">Fitch</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Almost zero risk</td><td style="width: 12.5%; height: 21px;">Aaa</td><td style="width: 25%; height: 21px;">AAA</td><td style="width: 12.5%; height: 21px;">AAA</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Low risk</td><td style="width: 12.5%; height: 21px;">Aa</td><td style="width: 25%; height: 21px;">AA</td><td style="width: 12.5%; height: 21px;">AA</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Risk if economy declines</td><td style="width: 12.5%; height: 21px;">A</td><td style="width: 25%; height: 21px;">A</td><td style="width: 12.5%; height: 21px;">A</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Some risk; more if economy declines</td><td style="width: 12.5%; height: 21px;">Baa</td><td style="width: 25%; height: 21px;">BBB</td><td style="width: 12.5%; height: 21px;">BBB</td></tr></tbody></table>Bonds rated "BB" and below are considered "speculative," or "junk bonds." These issuers typically offer higher yield to offset the risk. It's worth noting that ratings are not set in stone. Agencies can update their ratings, and whether it's an upgrade or a downgrade can affect the bond's price.<h3>S&amp;P, Fitch, and Moody's non-investment-grade ratings</h3><table style="border-collapse: collapse; width: 100%; height: 147px;" border="1"><tbody><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Meaning</td><td style="width: 12.5%; height: 21px;">Moody's</td><td style="width: 25%; height: 21px;">S&amp;P</td><td style="width: 25%; height: 21px;">Fitch</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Risky</td><td style="width: 12.5%; height: 21px;">Ba</td><td style="width: 25%; height: 21px;">BB</td><td style="width: 25%; height: 21px;">BB</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Expected to worsen</td><td style="width: 12.5%; height: 21px;">B</td><td style="width: 25%; height: 21px;">B</td><td style="width: 25%; height: 21px;">B</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Probable bankruptcy</td><td style="width: 12.5%; height: 21px;">Caa</td><td style="width: 25%; height: 21px;">CCC</td><td style="width: 25%; height: 21px;">CCC</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">Probable bankruptcy</td><td style="width: 12.5%; height: 21px;">Ca</td><td style="width: 25%; height: 21px;">CC</td><td style="width: 25%; height: 21px;">CC</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">In bankruptcy or default</td><td style="width: 12.5%; height: 21px;">C</td><td style="width: 25%; height: 21px;">C</td><td style="width: 25%; height: 21px;">C</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px;">In bankruptcy or default</td><td style="width: 12.5%; height: 21px;"> </td><td style="width: 25%; height: 21px;">D</td><td style="width: 25%; height: 21px;">D</td></tr></tbody></table><h2>Advantages of bonds</h2>Bonds are typically less volatile than stocks, because investing in debt gives you priority over shareholders in the case of bankruptcy. While a typical retail investor stands the chance of losing everything if a company goes down, debtholders may still get a portion of their money back. This makes bonds a solid option for investing after retirement, since less risk is involved. On top of that, bonds tend to perform well when stocks aren't, since when interest rates fall, bond prices increase. Bonds also offer the promise of regular, predictable returns. This sense of certainty can be especially advantageous during some stages of the economic cycle, like a <a href="https://www.businessinsider.com/personal-finance/what-is-a-bear-market" rel="noopener">bear market</a>, so bonds balance out periods of decline that affect other investments. The interest rates on bonds tend to be higher than the deposit rates offered by banks on <a href="https://www.businessinsider.com/personal-finance/best-high-yield-savings-accounts-rates-right-now">savings accounts</a> or <a href="https://www.businessinsider.com/personal-finance/who-has-the-best-cd-rates-right-now">CDs</a>. Because of this, for longer-term investments, like college savings, bonds tend to offer a higher return with little risk.Investors should consider both interest rates and time horizon when deciding whether to invest in stocks or bonds. <h2>Disadvantages of bonds</h2>Bonds' predictable returns can be a double-edged sword; although creditors are guaranteed regular payments, there's no chance to "win big" as you might with stocks. Unlike stocks, bonds do not offer investors any ownership rights. They simply represent a loan between the buyer and the issuer, meaning you won't have a say in where exactly your money goes.As previously mentioned, the inverse relationship between bond price and interest rates can also be considered a disadvantage, since market volatility means ever-fluctuating bond prices.<h2>What to know before you invest</h2>There's a lot to consider when deciding whether to invest in a bond versus another financial investment. Here are a few things to keep in mind:<ul><li>Timing is key. Because bond values fall when interest rates rise, if you're thinking about selling a bond, timing can make a big difference in your payout. If you sell a bond when interest rates are lower than when you first bought it, you might make a profit. On the flip side, if you sell when interest rates are higher than at the time of your purchase, you'll likely incur some loss.</li><li>The bond issuer's creditworthiness influences its interest rate. As previously mentioned, bond ratings agencies account for the likelihood an issuer will default on payments, and different types of bonds are generally associated with varying levels of risk. US government bonds are among the safest investments, followed by state and local government bonds, and then corporate bonds. Less reliable issuers, like a new company without much of a track record, may issue higher interest rates to compensate for their risk of default.</li><li>Bonds are susceptible to inflation risk. Although bonds are often considered a safe, reliable investment, they're still subject to inflation risk, since they typically pay fixed interest rates despite changing consumer prices.</li></ul><h3>Consider embedded options </h3>Embedded options give either the holder or issuer of a security certain rights that can be applied later on in the transaction's life, like selling or calling back a bond before its maturity date. These options can be tied to any financial security, but are most often attached to bonds.Here are a few embedded options that relate to bonds:<ul><li>Callable bonds can be "called" back by the company before their maturity dates, and then reissued later on at a lower coupon rate. These are riskier for buyers, since bond issuers are more likely to call back a bond when it's rising in value. </li><li>Puttable bonds work the opposite way, allowing creditors to sell the bond back to its issuer before it's reached maturity. This makes sense when investors expect an increase in interest rates and want their principal back before the bond's value declines. These usually trade for more than non-puttable bonds.</li><li>Zero coupon bonds do not pay coupon payments and instead are issued at a discount to their face value that will generate a return once the bondholder is paid the full face value when the bond matures. US Treasury bills are a zero-coupon bond.</li><li>Convertible bonds uniquely allow bondholders to convert their bonds into stock if they expect the stock's share price to eventually rise above a certain value.</li></ul>Another available option when it comes to buying bonds is investing in bond funds rather than individual bonds."They trade every day, so you don't have to wait until maturity if, for some reason, you do need your money," says Rosa, adding that they're professionally managed and offer more diversification than a single bond.<h2>Bond FAQs</h2><h3 class="faq-question">What are baby bonds?</h3>Baby bonds generally refer to bond debt issued in denominations smaller than $1,000. These baby bonds aren't to be confused with another type — also called "baby bonds" — that stems from a government policy proposal, the <a href="https://www.congress.gov/bill/117th-congress/senate-bill/222/text?q=%7B%22search%22%3A%5B%22S.%2010%22%5D%7D&amp;r=68&amp;s=1" target="_blank" rel="noopener">American Opportunity Accounts Act</a>, that strives to close the racial wealth gap. Reintroduced by US Senator Cory Booker and Representative Ayanna Pressley in 2021, the legislation proposes giving every American child, at birth, an interest-bearing savings account containing $1,000. <h3 class="faq-question">What are zero coupon bonds?</h3>Zero-coupon bonds have no coupons and don't pay interest at a periodic, fixed rate. When you buy a zero, you're getting the sum total of all the interest payments upfront, rolled into that initial discounted price. The US federal government, municipalities, corporations, and financial institutions all issue zero-coupon bonds. The majority — what most people refer to as zeros — are US Treasury issues.<h3 class="faq-question">What are junk bonds?</h3>A junk bond, like any bond, is a type of debt security. The party buying the bond is loaning money to the party issuing the bond. In return, the issuer promises to repay the money after a certain period, along with interest payments. Officially known as a high-yield bond, junk bonds can also be considered subprime loans; they also come with similar attributes to a subprime loan. Companies issuing these bonds have a higher chance of defaulting on the loan.

What is a bond? How to earn a steady stream of income by loaning money to a business or government

<ul class="summary-list"><li>China sold a record $53.3 billion worth of Treasurys and agency bonds in the first-quarter, Bloomberg reported.</li><li>It previously unloaded US debt to prop up its yuan, which has again grown weak against a rallying dollar.</li></ul>China unloaded a record volume of US bonds in the first quarter, escalating the country's pivot from dollar-denominated assets.According to US Treasury data cited by <a href="https://www.bloomberg.com/news/articles/2024-05-16/china-sells-record-sum-of-us-debt-amid-signs-of-diversification" target="_blank" rel="noopener">Bloomberg</a>, Beijing sold $53.3 billion worth of US Treasury and agency bonds from its stockpile. That's above already eye-catching volumes China was offloading last year. Altogether, one estimate has calculated that the country has sold <a href="https://markets.businessinsider.com/news/bonds/us-bond-yields-china-treasury-holdings-selloff-dollar-vs-yuan-2023-10?_gl=1*1o8dggq*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTY5NjU5NDY3Mi4yODYuMS4xNjk2NTk5NDcyLjYwLjAuMA..&amp;utm_medium=ingest&amp;utm_source=markets">$300 billion of US Treasurys</a> between 2021 and mid-2023. China's selling grew to the point that markets <a href="https://markets.businessinsider.com/news/bonds/treasury-bond-yields-china-us-debt-holdings-dollar-currency-reserves-2023-10">worried about higher yields</a>.But now, China seems to be accelerating its step back, as trade relations seem unlikely to improve between Beijing and the US. By last year, China was already <a href="https://markets.businessinsider.com/news/bonds/china-economy-weakness-us-treasury-holdings-dollar-vs-yuan-renminbi-2023-8#:~:text=The%20country%20is%20likely%20selling,strategist%20Sonu%20Varghese%20pointed%20out.?utm_medium=ingest&amp;utm_source=markets">discarding US debt to prop up its yuan</a>, given considerable declines against the dollar. This could again be the case, as the greenback has rallied heavily on hawkish US monetary policy. In fact, the <a href="https://markets.businessinsider.com/index/us-dollar-index?_gl=1*o9wgd8*_ga*MTMxNDIwNDI1Ni4xNjc1Njg3OTU4*_ga_E21CV80ZCZ*MTcxNjMxMjI4Ni4yNDUuMS4xNzE2MzE4NjM1LjQxLjAuMA..">US Dollar Index</a> has reached as high as 4.9% year-to-date, while the yuan has only trailed lower. This has made imports into the country expensive and could be a trend that only gets worse: that's if rising US protectionism continues to prop up the greenback.Most recently, that's as the Biden Administration has announced tariffs on a slew of advanced Chinese products, targeting everything from <a href="https://www.businessinsider.com/white-house-joe-biden-hikes-tariffs-on-chinese-made-evs-2024-5">electric vehicles to batteries</a>. Even if former President Donald Trump wins back the White House come November, he has promised to apply tariffs as high as 60% on Chinese imports. To diversify from the dollar, Beijing is also <a href="https://www.businessinsider.com/dedollarization-usd-strong-china-pboc-central-banks-buy-gold-inflation-2024-5">diving harder into purchasing gold</a>. Now, the metal makes up a 4.9% of Chinese reserves, the highest since at least 2015, Bloomberg said. It's a trend followed by other central banks as well, who have been snapping up bullion at record speeds.But dollar strength isn't the only thing motivating these trends. China is also de-dollarizing its reserves as part of a broader movement to diversify global finance, and chip at dollar dominance. Fear of US sanctions first triggered this pattern among central banks, after witnessing how the West applied dollar restrictions on Russia in 2022.

China ramps up de-dollarization efforts by dumping a record amount of US bonds

A few weeks before flying to Lisbon for vacation earlier this year, I redownloaded Duolingo. I'd used the language-learning app off and on over the years to brush up on my high-school French, but life — and weak discipline, if we're being honest — kept me from making its lessons a consistent habit. Now I hoped to pick up just enough Portuguese to dodge being branded an "ugly American." I promised myself that this time would be different because now I had the magic ingredient for getting myself to follow through on just about anything: a deadline.As the weeks before my trip dissolved into days, I kept up my Duolingo streak, racking up badges and encouraging notifications from Duo, the brand's green owl mascot. Then came my flight — and with that, the end of my streak.It didn't take long for Duolingo's emails to shift in tone. One subject line read, "It's been three days…" The next day, it asked, "Have you already gotten sick of learning Portuguese?" The day after that: "It looks like you've learned how to say 'quitter' in Portuguese."I archived the unopened emails without a second thought. After all, I knew perfectly well what I'd signed up for: learning Portuguese from the biggest asshole on the App Store.Across the internet, nearly a decade's worth of posts, comments, and blogs lament Duolingo's brusque bedside manner, which one Redditor <a target="_blank" href="https://www.reddit.com/r/assholedesign/comments/gvn354/duolingo_attempts_to_emotionally_blackmail_me/">half-jokingly</a> described as an attempt at emotional blackmail to spur reengagement. The nagging goes beyond email subject lines and push notifications; inactive users might look down at their phones to find that the Duolingo app icon suddenly depicts a sadder and older version of the owl's face — or one that's melting into a carnivalesque nightmare. Parents have even <a target="_blank" href="https://jessicaelefante.substack.com/p/duolingo-is-guilt-tripping-my-kid?utm_source=profile&amp;utm_medium=reader2">complained</a> that the capricious owl is attacking their children's brains and making them <a target="_blank" href="https://www.reddit.com/r/duolingo/comments/1ac2eu1/should_my_son_delete_duolingo/">cry</a>. Though it's widely accepted that Duolingo can be a real jerk, some have gone so far as to <a target="_blank" href="https://designbuddy.substack.com/p/monthly-issue-may-2024">suggest</a> the company's manipulative messaging is flat-out unethical.For Duolingo, though, the relentless nagging seems to be a boon to its bottom line. Following the first quarter of 2024, the company reported 54% year-over-year growth in daily active users (to over 31 million), 45% growth in revenue, and record profitability. Not too shabby for an app whose affect has been described as "<a target="_blank" href="https://www.socialsamosa.com/marketing-shorts/duolingo-unhinged-marketing-strategy-4125046">psychotic</a>," "<a target="_blank" href="https://digiday.com/marketing/how-duolingo-is-using-its-unhinged-content-with-duo-the-owl-to-make-people-laugh-on-tiktok/">unhinged</a>," and "<a target="_blank" href="https://steemit.com/duolingo/@koenraadt/duolingo-s-abusive-learning-methods-the-app-that-causes-mental-health-problems">abusive</a>" — attributes that, if anything, the company appears to be leaning into. Haters may hate Duolingo's scolding, but more often than not, the company's largely under-30 user base laps it up. Love him or loathe him, the owl's got rizz.It might be an overstatement to call tough love the secret sauce for engaging Gen Z customers. But marketing experts say it's part of the package for Zoomer-marketing magic."Younger age groups engaging with marketing are looking for a company that has a special, unique personality that's memorable and feels authentic," said Brian Honigman, a marketing consultant based in Philadelphia. Honigman said that where older adults might respond to corporatized brand messaging — think concise, assertive slogans such as "I'm lovin' it" and "Just do it" — younger adults and teens tend to seek out brands that appear to embody distinct values and interests and have a clear perspective on the world."They're looking for something that comes across more like a person," Honigman said. "Duolingo does a fantastic job of not coming across like many other brands."It might be more accurate to describe what marketers call "authenticity" as "consistency across platforms." No matter the product, marketers tend to agree that a brand's existing customers and potential leads notice when a distinct personality shines through. Regardless of whether people feel warmly toward Duolingo's sassy spokes-owl, they're likely to appreciate that the character holds true to its obnoxious persona beyond the app and user notifications. Throughout its occasional TV ads and regular dispatches on platforms such as YouTube, X, and especially TikTok — where Duolingo boasts more than 12.5 million followers — the smug little bird is uncannily itself. A recent <a target="_blank" href="https://www.tiktok.com/@duolingo/video/7380068067579006251">post</a> on the company's TikTok, captioned "celebrating getting my blue check back," shows Duo twerking, in a purple thong, while being pelted with red roses. A few days earlier, when the pop singer and party-girl paragon Charli XCX announced the release of her new album, "Brat," on X, Duolingo's account <a target="_blank" href="https://x.com/duolingo/status/1799115396462891323">reshared</a> the post, adding, "i can't believe u wrote an entire album about me."Duolingo's brand presence is also irreverently funny in a way that begs to be memed. During this year's Super Bowl, the company went viral for a <a target="_blank" href="https://blog.duolingo.com/super-bowl-commercial-2024/">five-second ad</a> featuring its owl mascot pooping out a miniature of its own face with the caption "Do your Duolingo." The company arranged for users in the US to receive a push notification the moment the commercial aired. "No buts, do a lesson now," it read.Though the app's reengagement notifications have trended toward bluntness, a Duolingo spokesperson told me the company began leaning into its owl's sassy online persona a few years after an "<a target="_blank" href="https://knowyourmeme.com/memes/evil-duolingo-owl">evil Duolingo owl</a>" meme went viral on Tumblr in 2017. "Since then, we've had numerous social-first marketing campaigns that embrace the meme," the spokesperson said. In 2021, the company released "The Unignorable Notification," a YouTube short in the style of a public-service announcement. It followed that in 2023 with a send-up of personal-injury-attorney TV ads: "Lawyer Fights Duolingo Owl for $2,700,000.""People love brands with personality," Matt Williams, a visiting clinical professor of marketing at the Raymond A. Mason School of Business at William &amp; Mary, told me. "Too many brands are scared to step out and grab one, but the ones who do it well reap the benefits."Williams understands this point better than most. From 2013 to 2018, he was the CEO of The Martin Agency, the firm that came up with a cockney-accented gecko to promote the insurance company Geico, which has had a <a target="_blank" href="https://www.npr.org/2022/06/01/1102496094/the-gecko-effect">transformative</a> effect on the way insurance companies sell themselves. "I can't tell you how many times, as CEO of the agency that created the Geico gecko, a CMO asked me, 'Can you do for us what you did for Geico?'" he said. "But the downside risk can be just as big. The same influencers that reward Duolingo or Geico when they get it right with an owl or a gecko will take down a brand that gets it wrong." When M&amp;M's transformed its green and brown "spokescandies" in 2022 from sassy characters with high heels to ones wearing sneakers and low heels, critics from all parts of the internet revolted. Conservative critics called it woke; 20-something TikTokers called it a needless crime of "<a target="_blank" href="https://www.tiktok.com/@themification/video/7055354130235247919">deyassification</a>."Williams views Duolingo's cheeky owl as a case study in brand personality done right. It struck gold with Gen Z and younger millennial language learners in particular. The company said in a blog post in 2022 that about 60% of the app's US language learners were under 30.Duolingo's spunkiness isn't just a marketing ploy; it also drives user engagement. Kristen Smirnov, an associate professor of marketing at Whittier College, told me that to keep people engaged, brands tap into their desire to avoid friction. It's part of the formula for keeping people hooked on free-to-play gaming apps, such as "Candy Crush," which make their money selling in-game add-ons and boosters."What those designers very deliberately do is they figure out exactly how many moves are likely to be needed in order to regularly solve a particular level," Smirnov said. "And then they offer the player a few less moves." When the player gets tantalizingly close to solving the level, they become willing to pay for the few extra moves needed to win.Duolingo similarly gamifies friction — not by rigging its challenges but by deploying its trusty sidekick to annoy users. "I am assuming that the company had to ask themselves, 'OK, how do we introduce friction that consumers want to avoid?'" Smirnov said. "So they created that incredibly obnoxious logo, the owl." Even in a gamified context, emotional friction, such as Duolingo's nagging, can backfire when it's applied over an extended period. Research suggests it's especially risky to deploy marketing campaigns that make people feel bad about themselves; a 2010 <a target="_blank" href="https://newsinfo.iu.edu/news-archive/13591.html">study</a> found that the use of guilt and shame in anti-drinking ads triggered a defensive response that actually made their target viewers likelier to drink more. If people feel as though they're constantly bumping up against reminders of their failure, they may decide they're no longer having fun and move on. "People kind of stop treating it like a habit, then they may find that they never open up that app again," Smirnov said, recalling her own disenchantment with Duolingo when she was flooded with notifications after breaking a 52-day German streak while sick.Despite the research, Duolingo insists its guilt-tripping notifications do the trick of enticing people to drop whatever they're doing to log on to the app. A spokesperson told <a target="_blank" href="https://debugger.medium.com/duolingo-needs-to-chill-8f1832745ca0">Debugger</a> in 2020 that "other options" for reengaging users were "between 5% and 8% less effective at getting learners to take a lesson."Still, not everyone loves it. When Duolingo's head of product, Cem Kansu, <a target="_blank" href="https://x.com/cemkansu/status/1301267132009848832">posted</a> a thread in 2020 about the success of "the passive aggressive reminder," several unhappy Duolingo users chimed in. "Wow, shame and guilt are how you want to motivate people to learn? that is pretty shitty," one reply said.But in the grand scheme of marketing, how shitty is it really? Engaging with products and services means opening yourself up to companies' shameless appeals to keep you coming back. It's a dynamic baked into the unspoken contract a consumer tacitly signs when they give their money to a mattress company that promises to give them the best sleep of their life or buy a pair of jeans that evokes effortless French-girl style. Marketing works by appealing to a person's deepest hopes and insecurities, offering consumer goods as the direct gateway to their idealized future self.Manipulative? Sure. Unethical? Not necessarily.Mara Einstein, a marketing professor at Queens College and the author of the forthcoming book "Hoodwinked: How Marketers Use the Same Tactics as Cults," told me that ethical lines get crossed when a brand attracts consumers under a false premise or doesn't let them disengage. She cited multilevel-marketing schemes as one example of a business model that routinely draws on both of these unethical tactics to drum up new business. Their approach often relies on bombarding customers with communication and then withholding delivery of the promised goods or services until the customer gives more of their time or money, or both."That doesn't happen with Duolingo," Einstein said. "Duolingo may nudge you, but you can always say, 'You know what? This isn't working for me.'" Users can always opt out. (I never did get back to those Portuguese lessons.)"Ultimately, they're making you feel bad about not finishing your Spanish lessons," said Honigman, the Philadelphia marketing consultant. "At the end of the day, that's not hurting the world."<a target="_blank" rel="" href="https://www.businessinsider.com/author/kelli-maria-korducki">Kelli María Korducki</a> is a journalist whose work focuses on work, tech, and culture. She's based in New York City.

'Emotional blackmail': How Duolingo manipulates its 31 million users 

<ul class="summary-list"><li>"Mary &amp; George" takes viewers inside the raucous 17th century court of Britain's King James I.</li><li>The series focuses on the sexual power-plays of a mother and son in the royal court.</li></ul>"<a target="_blank" class="editor-rtfLink" href="https://www.businessinsider.com/mary-and-george-starz-queer-drama-cast-who-theyre-playing">Mary &amp; George</a>," Starz's latest steamy drama, tells the outrageous story of one of history's most committed "momager."Long before Kris Kardashian helped build a <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/kim-kardashian-net-worth">$1.7 billion empire</a> in the aftermath of her daughter Kim's <a target="_blank" href="https://www.businessinsider.com/ray-j-accuses-kris-jenner-lying-about-sex-tape-involvement-2022-9">sex tape scandal</a>, there was Mary Villiers (Julianne Moore), who molded her son, George (Nicholas Galitzine), into a sophisticated sexual weapon to gain social standing and political power in the court of Britain's King James I (Tony Curran).Together, the duo became the monarch's closest advisors and were given the lofty titles of Countess and Duke of Buckingham. But, as the seven-part historical drama series, which began airing on April 5, shows, it took a lot of scheming for the <a target="_blank" class="editor-rtfLink" href="https://www.businessinsider.com/mary-and-george-challenge-stately-homes-filming-orgies-sex-scenes-2024-4">mother-son duo </a>to get to the top — and stay there.<h2>'These two people were just playing the game that already existed'</h2>While "Mary &amp; George," which is based on Benjamin Woolley's 2017 biography "<a target="_blank" class="editor-rtfLink" href="https://affiliate.insider.com?h=f5e6f745ffcee7fb53efe218fab1b32cc2cea7f3c1b06854bf49745b629a94a9&amp;postID=6616b12697126ae3b2008d03&amp;postSlug=mary-and-george-scandalous-true-story-behind-starz-historical-drama-2024-4&amp;site=bi&amp;u=https%3A%2F%2Fwww.amazon.co.uk%2FKings-Assassin-Secret-Murder-International%2Fdp%2F1250125030%23%3A~%3Atext%3DBook%2520overview%26text%3DAn%2520absorbing%2520account%2520of%2520the%2Cpower%2520seemed%2520to%2520defy%2520gravity.">The King's Assassin: The Secret Plot to Murder James I,"</a> takes some liberties with the historical record, it paints a largely accurate portrait of the court of England's James I (and Scotland's James VI) and the constant jockeying for power among his courtiers.<div type="image" title="Nicholas Galitzine as George Villiers in &quot;Mary &amp; George.&quot;" height="2000" width="3000" msid="109270082" hostid="261" sizebytes="819956"></div>As the series depicts, George Villiers rose from minor, down-on-their-luck gentry to the first person not of royal blood to be given a dukedom. He was the second of Mary Villiers's four children with her husband, the elder Sir George Villiers. Sensing her son's preternatural charm and appeal early on, Mary spent what little money she had after her husband's death on sending him to France to be educated in dancing, fencing, and the general good manners needed for a courtier's life.George returned to England in his early 20s and soon captured the king's attention — just as Mary had planned.Speaking to Business Insider, D.C. Moore, the creator of "Mary &amp; George," said that the "lack of pearl-clutching from Mary over what's she doing" drew him to this largely unexplored part of British history."It was common at the time to put hot young men in front of James in order to try and lure him and try and get a new favorite in place," he continued. "It was the game of the age. So these two people were just playing the game that already existed."James already had a male favorite in his court at the time, a Scottish noble named Robert Carr, who held the title of Earl of Somerset and quite a lot of power thanks to the king's affection for him.<div type="image" title="Laurie Davidson as Robert Carr and Tony Curran as King James in &quot;Mary &amp; George.&quot;" height="1200" width="1800" msid="109270229" hostid="261" sizebytes="148604"></div>As well as Mary, others would benefit from George replacing Carr as the king's favorite, according to another royal historian, Alan Stewart. As he wrote in <a target="_blank" class="editor-rtfLink" href="https://affiliate.insider.com?h=6843022e8c464970a573667ed971f04bcb174f9dfe2351f30e59d9d3ef2b00c3&amp;postID=6616b12697126ae3b2008d03&amp;postSlug=mary-and-george-scandalous-true-story-behind-starz-historical-drama-2024-4&amp;site=bi&amp;u=https%3A%2F%2Fwww.amazon.co.uk%2FCradle-King-Life-James-VI%2Fdp%2F1845951603">his biography of King James I</a>, money was raised by Carr's opponents to purchase George a new wardrobe and secure him a position as Royal Cup-bearer.George soon supplanted Carr in the king's esteem. After Carr and his wife were implicated in a poisoning and imprisoned in the Tower of London, George cemented his position as the king's favorite with a promotion to Master of the Horse in 1616. The next year, he was made Earl and, in 1618, promoted to Marquess of Buckingham, then finally, in 1623, Duke of Buckingham.<h2>Sexual or platonic? The nature of King James and George Villiers's relationship is debated</h2>While <a target="_blank" class="editor-rtfLink" href="https://www.jstor.org/stable/4288956">historians have debated</a> the nature of the relationship between James and his favorites, there is evidence to suggest that James and George enjoyed a romantic bond together, and possibly a sexual one too.In a letter to George sent in 1623, the king ended with the salutation, "God bless you, my sweet child and wife."<div type="image" title="Tony Curran and Nicholas Galitzine in &quot;Mary &amp; George.&quot;" height="2000" width="3000" msid="109270230" hostid="261" sizebytes="136376"></div>In an undated message to the monarch, George reminisced about a night spent at Farnham in Surrey, where he wrote that the two men lay so close together that "the bed's head could not be found between" them.According to the <a target="_blank" class="editor-rtfLink" href="http://news.bbc.co.uk/1/hi/magazine/7436409.stm">BBC</a>, the restoration of one of the king's residences in the early 21st century revealed a previously unknown passage linking rooms belonging to James and George.While Tony Curran, who portrays King James in "Mary &amp; George," said that he believed George used his "sexual currency" to rise through the royal court, he also felt convinced that there was a genuine connection between the two, that may have even been love."I think his relationship with George was was one of was one of friendship, of respect and ultimately of love," he said. "There was tenderness there, but George was also someone he could lean on politically as well."<h2>The three people in the room during the death of King James</h2>Until James died in 1625, George was the king's constant companion and closest advisor, enjoying control of all royal patronage.He married in 1620 to Katherine Manners, the daughter of the Earl of Rutland and one of the wealthiest heiresses in Britain. According to <a target="_blank" class="editor-rtfLink" href="https://www.smithsonianmag.com/history/the-real-story-behind-mary-george-180984086/">Smithsonian Magazine</a>, the advantageous match was another of his mother's schemes; she forced Katherine to spend a night in the same house as George, which <a target="_blank" class="editor-rtfLink" href="https://archive.org/details/georgevillierss00unkngoog/page/n23/mode/1up?q=%22enticing+the+maiden%22">cast doubt</a> on her honor and left her with no choice but to marry George to protect her reputation.<div type="image" title="Nicholas Galitzine as George Villiers in &quot;Mary &amp; George.&quot;" height="1200" width="1800" msid="109270234" hostid="261" sizebytes="204050"></div>Mary also benefited from George's elevated position; following the death of her second husband, she traded up to a richer husband and became a regular fixture at court.When James I died at age 58 following a bout of malarial fever, both George and Mary were by his beside, according to Woolley. The pair are said to have sent for their own doctor, turning away royal physicians, applied poultices to his body, and even gave him poison they tricked him into believing was medicine.Also in the room was James's son and heir, the future King Charles I, who colluded with George to ensure his ascendancy to the throne."No one was in that room other than those three people," Moore told BI. "There is some level of dramatic license that we've taken, but for me, it feels very true to the spirit of how Mary and George lived their lives."Unsurprisingly, once Charles took power, George retained his powerful position in court for the first three years of his reign until he was assassinated in 1628 at age 35."We're dancing around the history. There is some creation on our side but I think also we're not that far from the truth.""Mary &amp; George" is released weekly on Fridays at midnight on the Starz app and the Starz linear channel at 9 p.m. ET/PT.

The real story of the scheming, social-climbing mother and son who seduced a 17th-century king, as shown in new  drama 'Mary & George'  

<ul class="summary-list"><li>Billionaire Tesla CEO <keyword id="11897862" type="UNKNOWN" weightage="60" keywordseo="elon-musk" source="Orion">Elon Musk</keyword> has advised investors to go for homes or <keyword id="11893878" type="UNKNOWN" weightage="60" keywordseo="stocks" source="Orion">stocks</keyword> when <keyword id="11894140" type="UNKNOWN" weightage="60" keywordseo="inflation" source="Orion">inflation</keyword> is high.</li><li><keyword id="11896079" type="UNKNOWN" weightage="60" keywordseo="gold" source="Orion">Gold</keyword> and innovative <keyword id="11893295" type="UNKNOWN" weightage="60" keywordseo="real-estate" source="Orion">real estate</keyword> might also be good bets, and don't forget "real assets".</li></ul>Billionaire Elon Musk thinks it's <a href="https://markets.businessinsider.com/news/currencies/elon-musk-own-physical-things-wont-sell-bitcoin-ether-doge-2022-3">better to own physical things</a> like houses, rather than US dollars, if you're looking to protect your wealth when inflation is soaring.The Tesla CEO shared his advice just days after US inflation hit a <a href="https://www.businessinsider.com/inflation-cpi-price-growth-gas-prices-february-2022-3">40-year high of 7.9%</a> in February.<keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">Markets</keyword> are concerned about inflation, given its risks to economic growth, and about central banks trying to tame it by hiking interest rates. Naturally, investors are hunting for the assets that will maintain value best.When inflation surges, it whittles away at the purchasing power of dollars, as it takes more to buy an item. If a dollar is worth less, then assets valued in dollars could likewise lose value.Wall Street banks will say that stocks are the best assets out there. Goldman Sachs, for one, urges its clients stay invested in equities — mainly US stocks, though alongside a smattering from elsewhere. "We have not once recommended clients underweight US equities," Goldman says.Given that, Insider turned to five asset managers to look beyond the "US stocks are great" box.<h3>The shiny stuff</h3><a href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> and <a href="https://markets.businessinsider.com/commodities/silver-price">silver</a> generally do well, and there are signs both metals could gain in coming years, according to David Morrison, senior market analyst at Trade Nation. But finding a way to invest is not straightforward."Buying and holding the physical is one way," Morrison told Insider. "Although watch out on silver, as it attracts certain taxes which most forms of gold don't."Morrison also suggested buying mining stocks — gold miners, silver miners, or even diversified miners.<h3><keyword id="35147" type="UNKNOWN" weightage="60" keywordseo="bonds" source="Orion">Bonds</keyword> that protect investors from crumbling purchasing power</h3>Wedbush Securities' Jazmin Gabriela Carpenter believes Treasury inflation-protected securities, or TIPS, are another good bet.The worth of these bonds rises in tandem with inflation and decreases with deflation. Like conventional Treasuries, they are backed by the US government, but they are structured differently."They pay a fixed rate twice a year, which is applied to the adjusted principal," Carpenter said, referring to the face value of the bond. "Like the principal, interest payments rise with inflation."<h3>Innovative real estate</h3>One subsector of real estate could be attractive — industrial warehouses, according to Wealth Enhancement Group's Randy Godsell.These have benefited from the spread of e-commerce, the chief investment strategist noted. They should continue to provide stable income, even with higher inflation, in the near term."We think that private real-estate funds offer an attractive way to gain access to this durable sector, without the volatility of publicly traded REITs," Godsell told Insider.<h3>Seek out fast-growing companies</h3>Growth stocks trump value stocks for KC Mathews, chief investment officer at UMB Bank.Value stocks are those whose price appears cheap when their financial performance is examined. Their health is typically linked to the health of the economy and a higher level of interest rates, while growth stocks such as techs promise fast expansion.Demand in value sectors tends not to be sensitive to inflation, Mathews said. But historically, growth has outperformed value by 50% in times of inflation over the last two decades.<h3>Other investments</h3>"Real assets" — such as projects for digital infrastructure and renewable energy — offer good inflation protection, Momentum Global Investment Management's Richard Parfect told Insider.Investors can find opportunities in real assets through funds that have come to market in the last year, he said. These invest in things like subsea internet cables, vital to internet coverage and 5G wireless, and so to the digital economy.The portfolio manager mentioned specialist property in social housing, and more esoteric assets such as music royalties. Many of these offer either direct or indirect inflation linkage, he said.Read more: <a href="https://www.businessinsider.com/crypto-investing-3-etfs-to-buy-the-bitcoin-dip-without-owning-coins-2022-3" target="_blank" rel="noopener noreferrer">An investing expert explains how to add crypto exposure to your stocks portfolio through ETFs - and names 3 top ones to own</a>

You Searched For "how to apply sovereign gold bond scheme" and got 7 results

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