The Question of Gold and Silver By James Reed
At this time of financial crisis, investors are buying gold and silver to preserve financial value. Now, I offer no financial advice, being the last person in the world competent to do so. But I am puzzled when the prepper community comes out and says, that when economic collapse occurs, they will be able to buy things with gold and silver coins. Mike Adams, for example, had a Situation Report a couple of days ago, where he proudly showed off his gold and silver collection, like one would, say, a new car. He said that if he needed medicine in a collapse situation, he could use one of his shiny silver coins to buy it.
Now, if things get to that level, who says that chemist shops will be open? And would the shop assistant really take a piece of silver? I can imagine her/him saying, how do I know this is not a deep fake? And worst yet is the “barter town” scenario, where one goes to a den of thieves, with one’s silver to buy needed medicine. Well, good luck with that one, as they will need it!
Yes, gold and silver are stores of value, but only if social order continues; in worst case scenarios, I would prefer the hard goods instead, like baked beans, toilet paper, and more toilet paper. Just my opinion, and I am nobody, James Nobody.
“The collapse of California-based Silicon Valley Bank (SVB) sent investors scrambling toward bonds and gold to keep their assets safe.
SVB failed on March 10 after a bank run depleted its funds. The California Department of Financial Protection and Innovation subsequently seized the bank and put it under the receivership of the Federal Deposit Insurance Corporation (FDIC). Three days later, on March 13, the FDIC-administered successor of the failed bank began operations.
On the same day, investors flocked to U.S. Treasury securities and gold – two assets traditionally considered safe havens during periods of economic collapse. Bond yields incidentally fell, while gold prices spiked.
The benchmark 10-year Treasury yield fell nearly 20 basis points to 3.50 percent, the lowest level since Feb. 3. Meanwhile, the yield on the two-year Treasury fell by more than 40 basis points to 4.16 percent, also the lowest in more than five weeks.
Gold prices hit their highest mark since early February at $1,893.96. U.S. gold futures also saw a 1.2 percent climb to $1,889.
“Angst about what might be ‘the next shoe to fall’ spread through the markets like wildfire,” said Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus. “We continue to believe that while we are not yet out of the woods.”
SVB’s collapse marked the second-largest U.S. banking failure of all time; the 2008 collapse of Washington Mutual was the biggest.
Fed, Treasury Department bailing out SVB with “no bailouts”
The FDIC, Federal Reserve and the Department of the Treasury addressed SVB’s failure in a March 12 joint statement. They assured Americans that the deposits of everyone affected will be covered – not just those $250,000 and smaller.
“After receiving a recommendation for the boards of the FDIC and the Federal Reserve and consulting with the president, [Treasury Secretary Janet] Yellen approved actions enabling the FDIC to complete its resolution of [SVB] … in a manner that fully protects all depositors,” the statement said.
“Depositors will have access to all of their money starting March 13. No losses associated with the resolution of [SVB] will be borne by the taxpayer.”
The statement also mentioned that a similar scheme would apply to Signature Bank, which had been ordered closed by the New York State Department of Financial Services on March 12.
“All depositors of this institution will be made whole. As with the resolution of [SVB], no losses will be borne by the taxpayer,” the joint statement assured.
Health Ranger Mike Adams begged to differ, however. In a March 13 post on Natural News, he warned that FDIC’s move to insure everyone’s deposits will only bring the U.S. closer to economic collapse.
“Normally, the FDIC covers only $250,000 in deposits per person or institution. The problem is that [it] only had slightly over $100 billion in funds to carry this out, yet the total bank deposits held across America are approaching $10 trillion.”
In effect, Adams stated that the FDIC can only cover about one percent of bank deposits in America. To address this, the Treasury Department and the Federal Reserve would have to print more and more money to prop up the FDIC-controlled banks that insured people’s deposits.
“This is going to dilute the value of dollars and cause huge inflation increases across all the products you normally buy – such as groceries, housing, clothing, fuel and so on. All this printed money is created as debt on the shoulders of U.S. taxpayers,” remarked the Natural News and Brighteon.com founder.”