If you don’t already have gold in your portfolio, it’s definitely time to do your research.
The US banking failure, which already includes the second-largest banking collapse in US history (the biggest was Washington Mutual in 2008)1 is completely rattling the entire financial system and spreading like wildfire beyond borders.
The latest victim of the banking collapse was Credit Suisse,2 one of the largest banks in the world.
To protect themselves from the potential of more bad banking news, investors have begun buying up safe-haven assets like gold.
There’s a reason why Wall Street says gold is the best hedge against financial risks and the current situation taking place in the US is as risky as it gets.
Gold prices have already responded to the collapse, reaching above $2,000 twice in one week and Goldman Sachs, Citi, and Commerzbank all raised their price targets3 in anticipation of potential new highs.
The recent banking collapse is just the tip of the iceberg. The US has accumulated over $31 trillion in debt, so things are expected to get a lot worse before they get better.
If the Great Recession of 2008 taught us anything, it’s that diversification is crucial to weathering economic storms and that it’s better to take matters into your own hands than bank on the Fed to protect you.
According to market analyst Peter Grandich, who correctly predicted the market crashes for both stocks and digital currency last year, there is real opportunity in gold mining companies because mining shares relative to gold haven’t been this cheap in decades.
When it comes to choosing mining companies, it’s important to look for those undervalued companies with promising assets in mining-friendly jurisdictions and strong treasuries.
