Banking crisis continues – good for the gold price

First Republic Bank in California has been placed in receivership by California regulators. It is the largest collapse since 2008, and the bank’s assets were sold to JPMorgan Chase & Co. Confidence in First Republic Bank had been waning for some time. Now it had announced outflows of more than $100 billion and a plan for possible new options. JPMorgan had already been a major player in the 2008 financial crisis. This development, many experts say, will drive the price of gold once again. And it may not be the last banking crisis. The economy is weakening, and voices are already being heard that this new banking crisis could drive the price of gold to $5,000 per ounce. This is what Michael Lee, founder of Michael Lee Strategy and former vice president of Morgan Stanley, is saying now. Because gold as a crisis hedge is strengthened.

According to Lee, the Fed will still maintain its tightening cycle despite weak economic data and low GDP numbers. For the Fed, he said, it is also about regaining credibility. In June 2022, U.S. headline inflation peaked at 9.1 percent. This was due to the Fed’s securities purchases and huge interest rate cuts during the pandemic freezes. Now the Fed wants to push inflation down to two percent. This may result in a recession. By 475 basis points, the Fed raised interest rates last year, and if demand cools, recession may not be far behind. The Fed cannot create new services and goods, it can only dampen demand through monetary tightening. In addition to gold as a crisis hedge, assets of gold companies can also ensure the preservation of savings. There are Maple Gold Mines and Revival Gold, for example.

Maple Gold Mines – https://www.commodity-tv.com/ondemand/companies/profil/maple-gold-mines-ltd/ – has two gold projects in the works together with Agnico Eagle in Quebec. Best infrastructure and promising properties are given.

Revival Gold – https://www.commodity-tv.com/ondemand/companies/profil/revival-gold-inc/ – owns the Beartrack-Arnett gold property in Idaho. It is the largest formerly producing gold mine in Idaho.

Current corporate information and press releases from Maple Gold Mines (- https://www.resource-capital.ch/en/companies/maple-gold-mines-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 – 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/