Investing in gold and silver during times of banking crises can be a good idea for several reasons. First, gold and silver have been considered safe-haven assets for centuries, which means that during times of economic uncertainty or market volatility, investors tend to turn to these metals as a store of value. This is because gold and silver have intrinsic value and are not subject to the same economic and political risks as other investments such as stocks or bonds.
Secondly, during times of bank failures or financial instability, the value of traditional currencies like the dollar can decrease rapidly, leading to inflation and a decrease in purchasing power. However, gold and silver are not affected by the same factors that impact traditional currencies, and therefore can serve as a hedge against inflation and currency devaluation.
Consider this:
The DOW has gone up a little less than 13% from its year low of 29,135 on Sept. 27, 2022, to where it is today. The NASDAQ has gone up 14% from its year low of 10,213.
Gold has gone up 26% since its low of $1,627 on Oct. 20, 2022, to its record high today of $2,061, and Silver has shot up just shy of 47.5% from its year low of $17.83 on Sept. 1, 2022.
Gold has hit its record high, while Silver is rapidly approaching the critical $30 an ounce mark.
If it breaks and holds $30 an ounce we believe it could swiftly surge towards $40 and higher.
Investors take heed to the chart below! A financial episode may be on the horizon that could send stocks and bonds into a tailspin, causing gold and silver to skyrocket to even greater heights. With banks shutting down and unprecedented levels of debt, the stage is set for a potentially catastrophic economic event.
