Gold Price increase – Quote by Mr. Sachin Kothari, Director of Augmont Gold For All
Gold and Silver prices are touching new highs every day, as the banking crisis has emerged in the US. As the US FED raised interest rates sharply by 5.5% (16-year high) in the last year, and tightened the liquidity in the market, this has led to financial turmoil and a banking crisis. Since the beginning of March, regulators in the United States have shut down and sold three mid-sized US banks: Silicon Valley Bank, Signature Bank, and First Republic. PacWest Bancorp and Western Alliance Bank’s shares also fell by 50% last week as the demise of First Republic Bank raised investor concerns about the financial health of other mid-sized lenders. A large portion of the US banking system may be insolvent, which we will come to know later. More gains are possible in precious metals as news of bank failures becomes more prevalent in the coming months.