Bloomberg/Liz McCormick, Ben Holland and Edward Harrison/3-28-2023
“Look deeper into the latest US banking crisis, and the cause may come as a surprise to anyone still thinking in terms of the crash of 2008. It wasn’t dodgy loans to impecunious homebuyers that sank Silicon Valley Bank. It was a stash of what are thought to be the safest securities on Earth: US Treasuries.”
USAGOLD note: Now that the cat’s out of the bag on the position of a good many commercial banks i.e., deposits supported by eroding bond holdings, investors will have to make a decision on gold as a savings instrument within their personal asset structure. It brings to mind gold’s most important attribute. It is an asset that is not simultaneously someone else’s liability.
