Why Should You Consider Owning Gold if There’s a Banking Crisis?

 

Washington Mutual is just one of the major banks to fail within the past few years. As concerns about currency continue to increase, other banks are feeling the crunch as depositors look to remove their assets. Today, we take a closer look at why it’s a good time to invest in gold during a banking crisis.



Gold Is Valued Around the World

Gold is recognized around the world as having a certain value (at least the current spot price). Gold can be traded or used as a backup for other bank holdings. Regardless of where you go in the world, gold has the same value without having to worry about differences in currency value and other concerns common with paper currency.

Gold Is More Reliable than Fiat (Paper) Money

Fiat currency isn’t very stable. It’s common for paper currency to go down in value, which is what’s going on with the U.S. dollar. Gold, on the other hand, tends to go up in value even as paper currency fails. What’s more, gold tends to increase in value when paper currency or stocks go down. Gold does have its ups and downs, although there are more ups than downs if you go by recent prices. In fact, during the 2008 banking crisis, gold went up in value.

Gold Is a Good Substitute for Anything You May Lose

If a bank fails, there’s always the possibility of losing some of your assets. Banks are backed by the Federal Deposit Insurance Corporation, an independent agency that protects bank depositors by insuring money in case of bank failure by insuring deposits up to $250,000. Even so, you may lose some of your money or anything held in your safety deposit box. Gold is a good substitute for anything you may lose during a bank failure. It can be used to restart your savings or replenish what was lost. Gold can be linked to certain assets or even used for retirement savings.

There Are Several Ways to Get Started

If you’re just getting started with gold as a safety net for a potential bank crisis, there are several options to consider. One option is to buy gold bars from a reputable San Diego precious metals dealer who will securely store the gold on your behalf. Some companies also ship gold if you decide to sell it. Another option is to buy gold and store it yourself if the value isn’t excessive. You can also start a gold-backed IRA or purchase gold stocks that are tied to gold mines.

Also, determine what kind of assets you already have in your bank. A good rule of thumb is to make gold anywhere from 10 to 25 percent of your overall financial portfolio. This way, gold can be used as a safety net in case of a bank failure. Lastly, consider consulting with a financial advisor if you have concerns about a good gold investment strategy for your current needs and priorities. 

 

Whether you’re looking for expert advice on precious metals or searching for the best place to buy gold bullion in San Diego, make sure to work with trustworthy precious metals dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including gold, silver, platinum, and palladium. Give us a call today.

 

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.