Whats worth more, government bonds, or mutual funds and which is the best investment today?

Worth more? more than what - apples? oranges? My advice: if you are under 50 years of age, go with (no load) mutual funds. We live in a world of long-term inflation, to the detriment of bonds. Also, (A.) interest (bonds) are taxed at a higher rate than dividends (mutual funds) and (B.) Funds allow you to reinvest (compound) dividends.

Well government bonds they are taxed, munis most not and some of them can be exempt from federal and state taxes that's why they yield not so much. I consider funds are for small investors and you have to pay management fees. In June interest rate will rise and so the coupon of the new government issue will rise too which can make a bigger demand for them and the prices will be growing and in this situation you can buy like they saying off-the run issue (because it wont make enough demand it will become cheaper), so you can manage by yourself instead of paying some fees (for munis funds) and have little yeild.

If you buy $100.00 in Bonds and you invest $100.00 in mutual fund they are worth exactly the same at that moment.

A year later your bond would be worth $105.00 and your mutual fund would be as low as $90.00 and as high as $120.00

I am asuming you have limited your loss in the Mutual Fund to 10%

Some mutual fund will give you returns much higher than 20% this is just an example.

The best investment is always the Mutual Fund.

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Precious metals--->International Bonds--->Bear mutual funds(bearx) etc

Mutual funds. The best investment is in mutual funds as they offer a variety of options