You've heard, no doubt, that muni bonds are safe. This from the HS Dent blog (which I frequent and it's one of the few):
Tomorrow [July 1] is the beginning of the fiscal year for most states. It should be very interesting to see what happens as many states have factored into their budgets stimulus money that was never voted on and now does not appear to be forthcoming. It might be that the game is finally over. With cities like Maywood, CA firing all employees, Oakland, CA cutting 10% of the police, and states like NY threatening to lay off tens of thousands, there might actually be some movement in the sclerotic world of public finance.
On this note, I recently saw an article as to how great municipal bonds are because defaults are so rare and ratings are so high. What nonsense! Municipalities commonly do not follow GASB guidelines for reporting their finances, so what you find must be closely examined to make sure that they are 1) up to date and 2) complete. Cities are part of the great financial meltdown, and the fiscal year starting tomorrow will shine a cold hard light on what many have been hiding or at least minimizing for years.
The implication here is that if you have or are considering purchasing bonds because they are safe, be sure to do your homework.
Cash & gold seem safe at this point.
Who knows though. I'm not an expert, and in changing, tumultuous times, those two could quickly become the next victim. Clearly stocks, unless you're an expert, avid day trader, might not be the place to be, either.
At any rate, keep your wits about you. Don't put all your eggs in one basket. Do your due diligence on every transaction.
And, as a wise man once told me, there's no better place to invest money than in yourself and your own business.