How to Survive the Banking Meltdown | The Gold Standard 2312

https://www.midasgoldgroup.com/

In this episode of The Gold Standard, we talk about how to survive the banking meltdown.

We discuss the possibility of a banking meltdown and how listeners can protect themselves from the potential fallout. With a focus on practical steps that individuals can take to safeguard their finances, Deno and Russo explore the current state of the banking industry, the risks associated with the current economic climate, and what strategies you can use to navigate this uncertain landscape.

Since the beginning of The Gold Standard series, the message has been to protect your wealth through diversification with precious metals. Look at the warning signs that are popping up all around you.

Asset prices across multiple markets, including stocks, bonds, real estate, and cryptocurrencies, have been inflated to unsustainable levels. As prices rise, more investors jump into the market, further driving up prices and creating a self-reinforcing cycle.

A massive correction in the financial markets is long overdue. The low interest pumped the real estate market into an even more giant bubble than possible. Pandemic-related economic downturns, supply chain issues, high levels of debt, rising inflation, and constant interest rate hikes continue to feed the storm. The longer the pressure builds, the worse it will be when the correction happens. Investors should prepare now by diversifying with gold and silver.

The recent banking meltdowns have left us with more questions than answers. A recent bank survey of 212 managers overseeing $548 billion in assets revealed that investor perception of market risk cratered more than 20% between February to March, surpassing managers’ risk level amid the depths of the Great Recession. Is this the beginning of a global banking crisis? How worried should you be? According to Ken, very worried.

The financial world was shocked by Silicon Valley Bank’s (SVB) failure. It seemed to come out of the left field. When, in fact, the Fed repeatedly cautioned the bank about its risky investment practices more than a year before their collapse.

The underlying principle driving financial markets is greed. The roll-back of the Dodd-Frank Act, which called for stricter regulations on giant banks, to prevent excessive risk-taking, opened the doors for banks to grow as much as possible and take as many risks as they could stomach. Silicon Valley Bank quickly goes from just under the $50 billion limit set by the Dodd-Frank Act to more than quadrupling its size within a couple of years. Signature Bank, with Barney Frank on its board, doubles in size.

The failure of SVB heralded the growing anxiety people have about leaving their cash in the banking system. People are also growing increasingly nervous when banks have much exposure to cryptocurrencies. Signature Bank ran a payment system called Signet, with crypto companies constantly transferring money in and out of crypto.

The Failures of Signature Bank and Credit Suisse in Europe sparked contagion concerns, with many regional banks experiencing silent withdrawal runs. However, the Swiss National Bank invested a $54 billion loan to help Credit Suisse. JP Morgan and other large money center banks have contributed $30 billion to support the First Republic Bank’s survival. The failure of SVB has led to discussions of bank solvency, particularly as 94% of its $175 billion deposits were uninsured. The bank’s bond portfolio is scrutinized, with the longer-duration bonds suffering as interest rates have risen rapidly.

Unlike banks, precious metals are tangible assets that can be held and stored securely, making them a reliable component of a diversified investment portfolio. As recent events have shown, even the biggest and seemingly most stable banks can experience failures, leaving many investors worried about the safety of their assets.

The Gold American Eagle makes its return to the spotlight. The Gold American Eagle, a 91.67% pure or 22-karat bullion coin guaranteed by the US Mint, is a recognized and widely traded coin backed by the US Government. Its liquidity allows for easy buying and selling, while its historical significance and artistic beauty make it sought by collectors. It features a design from the iconic Saint-Gaudens Double Eagle, which, combined with the coin’s purity and government backing, has made it popular among investors seeking to diversify portfolios and protect against inflation and market volatility.
______________________________________________________________________________________________________

Listen to The Gold Standard: https://www.midasgoldgroup.com/gold-standard-radio-show/
Gold IRA: https://www.midasgoldgroup.com/gold-ira/
Invest in Gold: https://www.midasgoldgroup.com/buy-gold/
Guide to Owning Bullion & Coins: https://www.midasgoldgroup.com/bullion-guide/
Read the latest precious metals news: https://www.midasgoldgroup.com/news/