The collapse of the U.S bank Silicone Valley was big news this weekend, and for good reason. We saw one of the largest banks in the US collapse, causing concern and questions about how this happened, and more importantly, if this is just the start of something bigger. However, while everyone was focusing on the negative impact on the stock market, many forgot about the big winner; gold.
The U.S giant, Silicone Valley, had been facing issues for months as it held billions of dollars in treasury bills & bonds. While this is normal and wouldn't cause the bank issues, they were forced to sell it as a loss when their customers began heavy withdrawals needed for their tech industry companies. This past year we've seen unprecedented interest rate hikes, which only accelerated this issue, and it doesn't appear that it'll slow down anytime soon.
Silicone Valley's collapse showed yet another chink in the economy's armor, and many are asking if other banks will soon follow suit. People began to panic and the stock market reacted negatively, falling 4% over the last 5 days. And as people turned away from traditional investments, they began to look for a safe haven for their cash.
Gold turned out to be that safe have, prices were up more than 5% over the last 5 days and holding steady. This is the highest gold has been in months, and it's uncertain if it'll stay that high. If you want to get ahead of everyone else and cash in, we offer the highest gold prices in the GTA! And if you aren't certain about selling, you can always do a loan for gold instead!
