The Best Gold As An Investment – Part Two
As I wrote in part one of this article-blog, during my time as a Senior Analyst at ITM Trading, I would ask my clients which bank they banked with. Some would tell me, others preferred not to. However, on more than one occasion, I was able to call a client, or perspective client, and tell them that their bank was on the verge of failure. I had clients move accounts or close accounts, sometimes just before the bank went under. You should note that at the time, the FDIC was only insuring up to $100,000 of the balance in an account. This means that if the bank failed, and you had $300,000 in your savings account, you were out $200,000, with very little recourse.
Bank Failures Can Cost You More Than Money
Some of my clients lived in small towns and banked at small banks. These were the clients I was most concerned about. Often, they would have well over the $100,000 FDIC insurable limits in their accounts because there were just not many banking options available to them. Also, when a small bank failed, the FDIC would seize the bank, and then sell / place the failed bank under the conservator-ship of a larger bank. If the larger bank could not see profitability in a particular branch, the branch would not be re-opened, instead the customers and account holders of that branch would be forced to travel to the nearest open banking location, and this was sometimes in a neighboring town some distance away. Imagine not only losing the balance above $100,000 in your saving account, but also not being able to access your safety deposit box until the bank notified you and invited you into the failed banking facility to claim your belongings. This is one reason that I never suggested that my clients keep gold coins, rare gold coins, gold bullion, or old gold coins in the bank.
The Best Gold As An Investment Depends On If You Can Get It When You Need It
The old saying, “A bird in the hand is worth two in the bush†holds true with old gold coins, rare gold coins, and gold bullion. Silver coins too for that matter. If you cannot get your hands on it when you need it, then cash, food, guns, and gold is nearly valueless. The advantage that all of these items have over banking and investment products is that you can hold your wealth and needs tangibly and access them as you need them without having to wait for a bank to open or a facility to be unchained and unlocked, or for an account to be liquidated and a check put in the mail before you can retrieve your wealth or property. I watched hundreds of banks fail, and I suffered small costs and larger discomforts when my own Washington Mutual accounts were absorbed by Chase Bank. I’m sure that everyone who banked at an establishment that was there Friday, but chained up on Monday has their own tales of banking woes to tell. Part three of The Best Gold As An Investment will continue to discuss how old gold coins, rare gold coins, and gold bullion will help protect you from bank failures.
We believe that everyone deserves a properly developed strategy for financial safety.
Lynette Zang
Chief Market Analyst, ITM Trading