Gold vs. U.S. Treasuries – Which is the True Safe Heaven?

The decision of FOMC to purchase $400 billion worth of Long Term Securities by
selling Short Term Securities by the end of June 2012, may have triggered a
sharp reaction in the financial markets that turned into a sharp drop in
commodities prices, including gold price, a sharp appreciation in USD, and a
decrease in US stock markets and US Long Term Securities. The recent shift in
the direction of gold price may have raised the old debate among traders as the
merits of keeping gold vs. U.S. Treasuries. A commenter on the site resurfaced
this issue and I think it calls for a close look at the two investment tools and
try and compare their relation and list the advantages of each investment over
the other (Thanks Jlmuza for your comment and idea). U.S. Treasuries / Gold
Price – September During September, the U.S. 10-year Treasury yield has shed
0.51 percent points of its rate. The main spike came in the past few days
perhaps over the concern of Greek debt default. The FOMC announcement only
further accelerated the process as traders showed their discontent with the
current instability in the financial markets and with the modest plan of