The second-largest bank failure in American history was the collapse of Silicon Valley Bank. Signature Bank followed two days later. This is not an easy feat.
The Social Science Research Network recently published a study that found that 186 banks in the United States could be bankrupt if half their uninsured depositors withdraw their funds. You, as an American citizen, can walk into your bank to ask for what is yours. This simple act could cause the collapse of 186 banks that have potentially $300 billion worth of insured deposits.
The SSRN Study also examined the asset books of banks across the United States and found a $2 trillion gap in their market value. The study also found that the uninsured depositors were a significant source of financing for commercial banks, accounting for approximately $9 trillion in bank liabilities. These banks could pose a significant risk to the banking system if they were to be repaid by us, the people.
Are you seeing 2008 on the horizon again? What’s the difference now? We can see the bank collapse of 2023-2024 only a mile away. We were shocked by 2008’s bank collapse, but we now see the 2008 signs. Each of us can do something today to protect ourselves.
100 percent of the assets in the banking system are made up of paper assets. Money, stocks, bonds, mortgages, contracts, futures, etc. All paper. We could all find our paper assets values reduced in half or even gone completely, just like the Great Depression. Could that happen again with $31 trillion in debt?
Only one way can you protect your assets. This is to take 20-30 percent of your cash and paper assets and place them in precious metals. Your end game will determine which precious metals will work best for you. This is not an easy question to answer.
It all boils down to “the preservation and growth of capital.” A $100,000 account might have $30,000 in gold, the rest in stocks. If the stocks take a 60% hit, then you would now have $28,000 worth of stocks. Your gold could now be worth $35,000, as history has shown. After a 60% hit to your account you now have $63,000. This is one-way gold to protect your retirement accounts and portfolio.
Benjamin Franklin once stated, “An ounce prevention is worth a penny of cure.” You will be able to save your savings by taking just one step.