- The collapse of Silicon Valley Bank was the 2nd largest bank failure in US history
- Stocks plummeted as fear of more bank failures shook the foundations of the global economy
- Investors flocked to gold, sending prices of the precious metal soaring
The Collapse of the SVC Bank and the Economic Effects
The collapse of Silicon Valley Bank, the 2nd largest bank failure in US history, sent investors and officials into a panic. Close to 190 banks could face Silicon Valley Bank’s fate, according to a new study.
Most of the money was not insured, as the FDIC only guarantees bank deposits up to $250,000. According to some reports, more than 90% of all deposits fell outside of that threshold, resulting in an “awful lot of people losing an awful lot of money”. It’s highly probable that those people will never see that money again.
Fears of a global financial meltdown like the 2008 Financial Crisis are growing. More bank runs could decimate even insured depositors as the FDIC exhausts its emergency funds.
Stock prices are plummeting as the contagion spreads around the world. Credit Suisse bank had to be bailed out, leaving $17 billion of its bonds worthless. Economic conditions hold a frightening resemblance to the Lehman Brothers collapse that ignited the Great Recession.
That crisis saw the value of retirement funds drop in half after the Dow crashed nearly 7000 points. However, during the same time, physical gold leapt from $650 to a historical high of $1950.
Precious metals are a proven hedge against financial turmoil. Gold exists independently of the banking system. Analysts predict the rush to the safe haven asset will send its price to new record heights. Acquiring precious metals could not only preserve your wealth but potentially earn you a profit as everything else crashes.
Contact us today at 800-462-0071 to learn how you can protect your funds with precious metals or a Gold IRA.
