Hi Skol, as a goldbug I fully understand how bonds work thanks, and Aussie bonds are a great investment, I have some in my super but have eased out of most into equity funds, especially those with great gold miners in their top 10. Half the world is piling into them. However, it's hard to see the bond market as anything other than a massive, 30-year bubble now, especially in the US, it's unsustainable. When interest rates start rising, as they must if we are to have a recovery and rein in all that paper printed and still to be printed (yes, there's much more to come), the bond bubble bust will make the dotcom bust look like a picnic. When it's hard to say. The good news is after they've been roasted ex-bond investors will be queueing up to buy the last man standing, gold & silver.
