Bank Runs – How Gold and Silver Can Help

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Okay let's make a deal we're gonna talk About basic planning the kind that lets Us think about situations like Bank runs Without freaking out because we know That even in the unlikely event that it Does affect us if we have the right plan In place we'll still be fine So last week's Silicon Valley Bank Collapse Came on really fast I doubt many of us Watching this video are directly Affected here at least impacted beyond That FDIC Insurance limit 250 000 but It's something that all of us can learn From this is the largest bank failure in The United States since the 2008 Financial crisis it's not a small thing The bank though does cater to a pretty Specific Tech clientele and the entire Industry has been struggling lately so You don't need to assume that your bank Is in the same boat but there are Similar risks so let's make a plan it Just seems practical so let's just get Out the part of what we're looking at Here we've all heard about Bank runs but For clarity I'll just explain what Happened to svb they were notified by Moody's that the bank's credit was about To be downgraded and that downgrade was Due really to the value of the bonds That svb was holding the value had Fallen due to the rising interest rates Now I've been watching this story I'm

Not an expert here I'm just telling you What ice saw svb sold 20 billion dollars Worth of its bonds they took a 1.8 Billion dollar loss and that sale and The loss signaled to customers that the Bank was in trouble spooked a lot of the Customers and those who could began Withdrawing their deposits that led to Friday's shutdown something that's Pretty alarming to a lot of people Now that final stage of what happened at Svb that could really happen to any Bank The idea of a bank run is that a large Number of customers get nervous and they Withdraw their money all at once now the Worry there is that the bank could Become insolvent unable to return their Deposits so the customers Panic becomes Self-fulfilling they actually cause what They're hoping to avoid now the reason This can happen in the first place is Based on the way banks operate Fractional Reserve lending is probably Something you've heard about it allows Banks to hold 10 percent of its deposits In reserve leaving the remaining 90 Percent available for the bank to loan Out so if customers rush to the bank to Withdraw their funds or high number of Customers default in their loans or both Then the bank can't meet those demands And if that makes you nervous well it Made a lot of people nervous and that's Why the FDIC was introduced in 1933

They're there to act as a protection Against that specific issue so if a bank Becomes insolvent the FDI steps in they Secure the assets and they repay Depositors up to to two hundred and Fifty thousand dollars now you're gonna Hear people warn you not to trust Banks Some will even tell you avoid them all Together that seems to be the formula For a popular video around here but You're not going to hear that from me I Think all of us are grown up enough to Make the call on our own everybody's Situation is different somewhere above That 250 000 FDIC guarantee some aren't Some have all their bills being paid Through their accounts to payroll being Automatically deposited and more Some don't so there are certain things That only apply to you and then there Are two things that I think really apply To everybody the first is that upper Limit of the FDIC guarantee it's two Hundred and fifty thousand dollars per Depositor per bank so you might want to Consider how and where you keep your Savings if you're above that Mark now The second is your need for immediate Access to cash how much you might need I Talked to several people on Friday who Had Accounts at svb Frozen it's kind of A scary thing they expected to have some Resolution at least on the FDIC insured Levels by Monday but we'll see they were

Scrambling at the time to figure out Payrolls and other immediate needs That's a bigger issue than personal Accounts though the idea though is the Same would you have your recurring bills Covered if your bank account got locked Up for a week or more that's something That you might want to think about I think gold and silver play into this Plan in a pretty significant way I've Always thought that it was smart to keep Some cash on hand but I wouldn't want to Be my own bank as so many people Recommend I would never want to keep Hundreds of thousands of dollars in cash At my house this wasn't a problem when I Was in my 20s just wasn't an issue at All because I didn't have enough to Worry about but as you get older your Retirement savings come into play maybe You have a significant amount saved up Do you want to keep that at your house I Don't think so what I do think makes Sense is having enough cash to cover Immediate expenses maybe that's a Month's worth maybe it's two or three And then I think that it makes sense to Have gold and maybe silver stored Somewhere that you could access it Relatively quickly that's the start of My plan and I've had that planned long Before the Silicon Valley Bank closure 15 years before for counting and the Reason why

Is that this happened to other banks in 2008. now the second part of my plan the Specific part of it is something that I Talk about all the time that's having The kind of gold and silver that I can Very quickly sell and there are a lot of Ways to go about this my personal plan Is to have a base of one ounce American Gold Eagles and buffaloes that's what I'd sell down if I had to I don't see a Need for variety personally I don't see A big need for smaller fractional gold I Don't see a big need for silver but That's just me that's my plan some of it It's well hidden it's close at hand and Some of it is vaulted in a depository Your plan is whatever makes sense to you You might see a need for fractional gold Maybe silver you might like lower Premium options you might like pre-33 Now I'm going to run through a few of These ideas quickly the ones that I Think make sense and then I'm going to Give a little bit of the thinking behind Each of them now realistically this is All the same plan they're just variables Here an option that I think is almost as Good for me in my situation the Situation of buying Eagles and buffaloes Would be buying something like a one Ounce Canadian maple leafs maybe Krugerrands possibly britannias all Three options are lower premium but They're very well known and I could sell

Them all in my location though the Eagles and buffaloes are considerably More popular so that extra one or two Percent buy premium on them would Typically be covered in the sell side as Well I'd get back one or two percent Over spot if I sold them so it's really Not a significant part of the plan I can Make it work with really four or five Different coin options the bigger part For me of this plan and the part that Really doesn't matter from buying Maples Or Eagles buffaloes or britannia's is Consistency I don't want to have any Question on that quick sale I want to Have what the local dealers want and I Want to have as much of that as possible My local dealers they like Maples they Like groups just fine so all of those Options would work another option would Be to go heavy with fractional gold I Hear this recommendation a lot in the Logic it makes sense it's that you Wouldn't want to sell a 1900 coin to buy Groceries for the week again that makes Sense if 500 will get you through that Month while having quarter ounce coins Might be smart I think that that's the Second biggest consideration for what You plan to stack the first is what you Want to spend for each purchase in the First place quarter ounce tenth ounce They might Simply Be what you're most Comfortable buying and I don't care what

Anybody says about premium you should Stack which you're comfortable with what I don't agree with is when people say That the population won't be able to Afford the one ounce coins here in the United States there have always been Buyers for them they have always been The most popular coin so anyone telling You that is probably just making a guess They probably don't know the market and I would not want to be liquidating gold Weekly I look at it like what would I Need for a month and since I don't want To have to sell any gold really I'm Going to have cash available for smaller Purchases and between you and me I'm Gonna need more than five hundred Dollars to get my family through a month Now another option that plays off the Idea of buying what you're comfortable With is buying what you like maybe you Get bored with eagles and buffaloes Krugs or britannia's you need it to be More exciting than that there's Absolutely nothing wrong with that Typically the people buying High premium Fun coins they probably have more Discretionary income than the average Person so it's on them and if they ever Need to sell down quickly if you ever Need to sell down quickly if this is you You might not get more than spot but you Still have a backup option that most People simply do not now if you hear me

Say Eagles and buffaloes you simply Don't like them totally fine my advice Here is just to call the local dealers Talk to them and ask them to make sure That they'll buy what you have now if They won't or they won't give you what You think that they're worth well I Showed a few weeks back that it is very Easy to sell to online dealers here as Well you'll do better in a sale like That but it's going to take longer I had A quote on Monday and I had the money in My account by Thursday I I think that's Probably a best case situation now a Subcategory of this might be pre-33 but These are very specific to local dealers For some they're just as popular as Modern U.S mint bullion Eagles buffaloes For others though you have to know what You're getting into and that same advice To call around ask your dealers what They're into that definitely applies Here now the next is silver I see the 10 Ounce silver bar is a toss-off win Compared to 1 10 ounce gold coin premium To buy them it's about the same Liquidity also about the same if you Like silver you know obviously go for it You're not going to listen to me either Way but the same dealers that buy gold They buy silver so it's really the same Plan the difference here though is that If you're looking at needing to sell 10 10 ounce bars at a time to get to that

Two thousand dollars I'll just say it it's a lot easier to Carry a single gold coin inconspicuously Than it is to bring in 10 blocks of Silver seriously if you have them go Grab 10 10 ounce bars and just walk them Into the Next Room now below that size I Don't know how much faith I have in Silver's usefulness I like having American silver eagles I've mentioned That several times and I could see Potentially being able to use them Directly in transactions it's not nearly As likely as using something like Cryptocurrency but who knows now I don't See broad acceptance of small silver one Ounce rounds constitutional silver all That just does not seem significant Enough to me to cover the kinds of Issues that a wide-scale bank run would Cause but if it helps you sleep better At night just like anything go for it The final option would be to just buy Whatever you find whatever's cheap this Week whatever catches your eye next week Different sizes different Metals Sometimes baby Yoda sometimes a Holographic gold bar and I'm sorry here But to me this just is not a plan this Is trying to address a possible issue Without a plan again you're going to be Better off than someone with no backup Whatsoever but I just can't come up with The reason to do this if you have one

Great if you don't and you're watching These videos to try to come up with your Own plan well I would say that anything That I've mentioned prior to this prior To just buying whatever you run across Is going to be better a two is one one Is not that's a planning Mantra that's What this whole channel is about so There shouldn't really be a surprise I Think having a plan is important and Normally I'd walk this back a little bit In case you're doing it I don't want to Hurt your feelings but we're talking About planning for an unexpected issue That you might need to react to Immediately and a uniform plan beats Chaos any day Now there's more to this topic it's one That I think involves more than cash and Metals I could even give a strong case For cryptocurrency here but I probably Need more time to make that case and It's really something that I'm not Arguing for now if you can find a way to Get some cash socked away at home to get Three ounces of easily liquidated gold I Would say that you're well on your way That's a three month contingency for a Lot of people now my contingency it's Two years you don't have to stop that's Up to you but you really should think About this stuff Banks can get shut down I would say that your goal should be to Try to keep that from shutting you down

Too So that's it for this one let us know What you think here whether you have a Backup plan in place or maybe you're Working on it hopefully nobody's Scrambling and hopefully svb didn't Impact you directly I have some friends That are pretty stressed out at the Moment hope you're all fine let us know And then while you're in the comments be Sure to hit that like button if you Found any of this interesting be sure You're subscribed with notifications Turned on if you'd like to hear more on The topic and if you're still here Thanks again for watching I always Appreciate your time Take care

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