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October 13, 2009

October 13, 2009 – Gold and silver spot prices rose on Tuesday morning after more savings account holders decided to shift their funds from increasingly risky bank accounts into the precious metal market. At 3pm EST, gold for October delivery was trading at $1063 per ounce, and silver is presently valued at $17.69 on www.Kitco.com and www.GoldPrice.net.

Many investors are losing confidence in our nation’s shaky banking system, and a recent report from CNN Money outlines the reasons behind the mass migration away from bank accounts and into more stable investments, such as physical gold and silver. "There is an awful lot of softness on bank balance sheets," said Hal Reichwald, a banking lawyer at Manatt Phelps & Phillips in LA who was interviewed for the CNN article. "There’s real concern about problems coming down the road(for our banking system).” There are 416 banks listed on the FDIC’s “troubled” list, but the tight-lipped federal insurance fund refuses to reveal the names of specific banks until after they fail. This has caused feelings of helplessness for many consumers, who interpret this cold shoulder as a sign that nobody cares what happens to their money. This writer is pretty sure that FDIC Chair Sheila Bair and her staff are not personally invested in any bad banks, so why should we be subject to bank failures?

Gold and silver provide industrious Americans with a physical, liquid asset that can be stored privately, or at a depository in your name. By purchasing physical metal, investors gain a palpable insurance plan in the event of a national financial catastrophe. The old adage of “hope for the best, prepare for the worst” has never been more appropriate than now, when our nation’s collective and individual futures are in jeopardy. 

Shannon King

Senior Staff Writer – GoldSilver.org

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