• Recent bank failures are second only to the 2008 Financial Crisis
• Continued interest rate hikes are causing bank instability and recession
• Investors seek safe haven assets like precious metals to shield wealth

Bank Failures Threaten to Decimate Portfolio Value

The largest banking crisis since the 2008 Financial Crisis is still shaking the global economy. Economists and investors are worried about the solvency of major banks around the world. They fear that bank failures will keep spreading until the entire financial system is in jeopardy.

The spark that lit the failure was the Fed’s aggressive interest rate hikes. Powell raised rates nine times since Biden took office, with another hike expected next month. The Fed feels compelled to raise rates to tame the record inflation caused by trillions of new government spending.

Each rate hike widens the cracks in the financial system. Tech, real estate, and now banks are all collapsing. Max Baecker, President of American Hartford Gold, said, “Interest rate hikes have eroded the value of bank assets such as government bonds and mortgage-backed securities. Since SVB failed, Americans have moved over $500 billion from smaller lenders into big banks. And that causes more instability.”

The Fed created a perfect trap for themselves. If they keep raising rates, the economy breaks down and a recession is inevitable. JP Morgan said that we’re past the point of no return to avoid a recession. And if the Fed cuts rates, inflation can become permanent, and we may never see an end to rising prices.

There is a level of uncertainty not seen since the Great Depression. In response, investors are flocking to safe haven assets like precious metals. Gold and silver retain their value independent of the banking system and don’t have counterparty risk.

Contact us today at 800-462-0071 to learn how you can protect your funds with precious metals or a Gold IRA.