Why Investing into ASE's is different that EFT's & Beanie Babies™!

Over these past Holidays I was discussing this very thing with a good friend and fellow collector. The only difference he could point out was that ASE's actually are made of a precious metal!
His argument was, other than that, they were no different than EFT's & Beanie Babies.
Opinions?
J.T.

 

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Silver Beanie Babies.....

 

ASEs do at least contain silver, a commodity, so they should, at minimum, always be worth their silver content value. EFTs and Beanie Babies are not tied to any commodity that I'm aware of, so they can lose all of their value, down to the last micro-cent. So silver would have to completely tank overall to see a net loss equal to the possibilities of EFTs or Beanie Babies. Though you can still easily lose money with ASEs, the losses seem of potentially lower impact and of potentially lower loss. I say "potentially" because no one really knows.

If I had the choice in investing between one of those three, I would choose ASEs simply because they're tied to a commodity. In my mind, they are slightly different for that reason alone. If you speculate on them above their metal content, you can still lose money, but that's true for pretty much all numismatic coins. Nothing comes without risk.

 

ASEs have an intrinsic value. If melted down, they still have value, I've never tried to melt down a Beanie Baby

 

A friend of mine bought and used Barnie stuffed toys for target practice.

 

It would be odd if I started collecting Beanie Babies at 60.

 

I guess that’s ETFs rather than EFTs.
They come in a lot of flavors. Recently started buy intermediate term bond ETFs (corporate, US, and municipal). Those aren’t going to zero and send income monthly. Silver doesn’t send income.

 

I wonder.... ( oh, I can't mention that subject as it conflicts with the rules)...

Jim

 

Wow I think I'll trade all my beanie babies for ASE!

 

Did you mean NFTs (Non-fungible tokens) instead of EFTs (ETFs) which are Exchange Traded Funds? ETFs are a legitimate stock-based equity investment and are just as reliable as Stock Mutual Funds. NFTs are a pig-in-a-poke in my opinion and aren't worth anything intrinsically, just like Beanie Babies.

 

I've been wondering that too.

 

The word “investing” is not allowed in coin chat.

 

I thought the same and that’s most likely what the OP meant. EFT’s have actual value, NFTs on the other hand…LOL!!

 

We’re all confused. EFTs are a way of moving money; ETFs can be bought and sold.

 

I was just going to point out that Beanie Babies do have an intrinsic value -- as fuel. It's not very high.

Edit: I wonder what their R-value might be as insulation?

 

I invested part of my 1st paycheck, upon graduating from college, being given a secure design engineering position, in series EE bonds.

As a teen I didn't know what my old boss knew, so I invested for decades, in these supposedly ultimately secure paper documents.

Still holding many that can't be cashed, I believe their history is an indicator of present/future "securities".

JMHO

 

The bonds are from the 1960-70-80s, and I was informed that they were to be sent unsigned to treasury direct, where they will cash your bonds and hold your funds.

I believe you've been misinformed, as my info was verified by U.S. banks, and Treasury Direct recently, but I've received inaccurate financial information from our public and private institutions.

How do you think the feds will bankrupt our Fiat, securities, etc.?

During the Great Depression, in all, 9,000 banks failed--taking with them ~$7 billion in depositors' assets. In the 1930s there was no such thing as deposit insurance--this was a New Deal reform. When a bank failed the depositors were simply left without a penny. The life savings of millions of Americans were wiped out by the bank failures.

The Federal Reserve System is the central bank of the United States. Referred to as the Fed, it is arguably the most influential economic institution in the world. One of the chief responsibilities set out in the Fed's charter is the management of the total outstanding supply of U.S. dollars and dollar substitutes.1 That means the Fed is responsible for the policies that create or destroy billions of dollars every day.


Despite being charged with managing the money supply, the modern Federal Reserve does not simply run new paper bills off of a machine. Of course, real currency printing does occur (with the help of the U.S. Department of the Treasury). However, the vast majority of the American money supply is digitally debited and credited to commercial banks. Moreover, real money creation takes place after the banks loan out those new balances to the broader economy.


The Federal Reserve, as America's central bank, is responsible for controlling the supply of U.S. dollars

The Fed creates money by purchasing securities on the open market and adding the corresponding funds to the bank reserves of commercial banks.

The Fed uses the federal funds rate to affect other interest rates and adjust the money supply.

To combat the recession caused by COVID-19, the Fed lowered the reserve requirement for banks to zero!

The aforementioned information is all publicly posted, and is trusted not to be inaccurate/political.

It should be noted that some small creative financial institutions have found a means to bypass the edicts of Treasury Direct, and accept the bonds as financial documents to be exchanged as "cash".

 

I'm not misinformed; you provided additional info.
Many of your bonds would not be EE bonds as those were issued beginning 1980.
Your bank should be happy to help you complete FS Form 1522 and certify your signature (and probably mail everything for you). If not, I'd find another bank.
Series E and HH bonds from that era have stopped earning interest.