Today’s Gold Price – Bank Closures, Unemployment & Other Bad Things

So it has been a really bad week for Banks One Bank in particular being shut Down but believe it or not there's Actually more going on that's affecting Gold price today's price at least we're Going to take a look So there's a lot going on right now Affecting gold prices not exactly sure Where to start we have jobs bank Liquidity long-dated treasury bond Short-term treasury bills they're also Geopolitical events but we're going to Keep those separate for now and all of These things are competing signals for Gold price and like always the current Moves are not exactly good indicators For the longer term Trend so we're going To split them up a little bit we're Going to take a look and we're also Going to look at Gold's role as a Popular risk off asset because the same Forces or at least the end result of all Those forces together are affecting that As well So I posted a short video comparing the Purchase of a gold coin to the purchase Of two thousand dollars in treasury Bills I think that's a good place to Start it's going to make sense in a Minute check that out if you want to see The match up but the Highlight is simple A 52-week treasury bill pays 5.28 it's a Guaranteed return and the way that it Works is that you buy the t bill at

Treasury direct or you use your Brokerage account you pay 1 894.40 and then at the end of the term Two thousand dollars is deposited back Into the account that you used to make The purchase it's pretty simple but my Point in making the video wasn't to tell Anyone that that's what they should do It was more demonstrating why the price Of gold has not continued up in the Current High inflation environment and That would normally be positive for gold But there are easy alternatives to gold Right now and traditional risk-off space Those Alternatives have historically High returns right now and like I Mentioned before they're guaranteed now It didn't take long for people to start Pointing out skeptic criticism of any Kind of government guarantee in the Comments well we're going to get that Anytime treasury products are mentioned But if we widen the lens a bit long Dated treasury bonds are taking a hit Right now these are different than Treasury bills which mature in 52 weeks Or less but they're in the news because Of what we're seeing happening with Svb's financial liquidity issues that's Silicon Valley Bank they're the 16th Largest U.S Commercial Bank and their Stock price fell 60 percent after Scrambling to cover nearly a two billion Dollar loss after having to liquidate

Part of their bond portfolio now several Things played into that but treasury Bills come into play here too since not Only are they competing with gold at the Moment they're competing with Bank Savings accounts cash deposits are down Now some of that's affecting other Banks Too and the svb issues have cascaded Into other institutions so banks have Had a really bad week and speaking of Bad week it's also worth noting that svb Holds very large amounts of Cryptocurrency on their balance sheet as Well so it's kind of a double whammy and Maybe even a quadruple Whammy so what's Going on with this bank and really why Do we care well svb was holding Long-dated treasury bonds not the Short-term treasury bills that I Mentioned earlier and if you sell a Treasury product before its term while You take a loss and svb they had to do That to shore up their balance sheet They took a two billion dollar loss or Just about 2 billion and I don't know It's on their balance sheet but looking At the news articles they're a big Tech Startup lender makes sense Tech has not Been having a banner run lately and then If you look at the week the Cryptocurrency had with Bitcoin falling Below twenty thousand dollars well There's some problems you add to that That more and more people and

Institutions are buying treasury bills At that guaranteed 5.28 percent rather Than depositing their money in Banks Well this particular bank is having a Problem and the fact that deposits are Down that's not only affecting SVP That's affecting a lot of banks so these Other banks are going to have their own Problems with liquidity as well or at Least that's the concern so one way this Rolls back to gold is its role as a Risk-off asset short-term treasury bills They might seem like a better place to Park money to some but now we have this Bank instability issue whether that's Real or imagined it and that's going to Be a reason that some people in some Institutions want a larger position in Gold And if you watch what's happening with Svb it's just getting started they've Just been shut down by regulators and Their bond liquidation that has Effectively been a fire sale on bonds so We'll see what happens there to the Price but the 10-year bond yields fell 14 basis points overnight that went down To 3.77 percent and that affects the Balance sheets of a lot of banks okay so Here's the deal I'm sure there are People making videos right now they're Going to tell you get all your money out Of the Banks Banks are going to collapse Bank runs it's going to be chaos but

That's where this goes from useful Information things that you should watch For to click bait fear peddling I'm not Here to tell anyone what they should do Svb is a big Bank they've just been shut Down and that could definitely create Waves certainly a possibility but does That mean that your bank will collapse That you'll lose all of your money if You leave it in maybe you should get it All out put it all into gold and silver And then just wait for it to shoot the Moon well it might be a little premature For that So I'm not here to give Financial advice I'm not qualified I'm just kind of here To ask some questions I'm not afraid to Call out some unqualified advice of Others maybe they should be asking some Questions There's a lot going on the problem that We see over and over is that short-term News and events they tend to get hyped And extrapolated and that leads to People using the closure of One Bank as Evidence for a narrative that maybe They've been trying to tell for three Years more years it gets very difficult To separate fact from hype good Information from bad in the short term Though there's really no question it is Affecting short-term gold prices I was Expecting job numbers to be cooked like They were last month and that would

Control the story big job numbers would Have made investors sure that we'd see 50 basis point rate hike again in March USD would pump gold would fall and what We got instead was a mixed Report with Several key negative data points like Unemployment increasing to 3.6 percent Add to that the story of Bank liquidity Issues that we're having right now Gold price actually went up So what comes next well Not much has changed inflation is still High jobs numbers are still coming in Strong rates still going up USD Comparatively strong and the U.S Treasury products they're still Returning big yields so as much as I'd Like to say that a moonshot is coming I just don't see this leading to any Kind of sustained breakout for gold at Least not yet we've all heard the story Of the Zen master and the little boy Little boy gets a horse for his 14th Birthday everyone in the village says How wonderful zen master says we'll see A few years later boy falls off his Horse villagers all say how terrible zen Master again says we'll see War breaks Out all the young men have to go off and Fight and you get where this is going These are one-off events and in this Case they were changing the course for That boy but this is more a case of One-off events just being one-off events

I think the wider picture for gold price Still looks a lot like it did last week And if you have more than 250 000 in Your bank account well might make sense To get serious about spreading that out And if you don't you still have some Protections but diversification is just Always a smart thing so let's call it Good there I have a poll running on what We all think is next for gold 1799 or 1900 17.99 it's winning two to one so it Looks like a lot of us are thinking the Same thing not quite out of the woods Yet but let us know what you think hit Us up in the comments and while you're There be sure to hit the like button It's a big help to the channel make sure You're subscribed if you want to see More on the topic and if you're still Here thanks again for watching I always Appreciate your time Take care