This week, customers of the failed bank woke up to find their money gone after SVB received accolades from mainstream media praising the bank as one of best.
Executives cashed out millions in recent weeks before SVG was taken over by regulators. Customers stood outside in long lines trying to get their money.
The failure began with a bank run withdrawal of $42 billion.
Gold is a proven hedge against inflation and a proven long term store of value. Having gold as part of your overall portfolio offers a defensive strategy strategy when there is a lot of uncertainty about other investments. In some cases, this now includes even holding cash in banks during high inflation period.
Yellen initially expressed “full confidence” in the government’s abilities to respond to the situation. While the White House released a statement affirming that it too is confident that regulators have the situation under control.
The latest moves have all the makings of a major bailout. The Fed’s new “emergency bank funding program” will make an unlimited amount of funds available to cover customer deposits.
Inflation continues to run hot and the Fed is likely to pause continuing rate hikes as trading has been halted by numerous banking stocks as the fallout from the SVB failure continue to spread.
Owning physical precious metals such as gold and silver is considered by financial experts as one of the best ways to safeguard some of your cash.