Anyone looking to safeguard their savings should consider making an invest in gold. Investing in gold can safeguard your savings and serve as a hedge against losses in the stock market because it is one of the first alternatives that investors buy when the stock market goes down. Gold also gives you peace of mind when you're uncertain about the security of your large bank deposits in the face of new financial regulations known as “bank bail-ins.”
Au Bullion always has a lot of gold bars and Canadian Gold Coins on hand because it has one of the largest inventories of silver and gold in Canada. As soon as your payment is approved, we send them discreetly packaged, insured, and tracked. We also buy gold when you want to recapitalize, so you won't have any trouble selling your gold, whether you want to put it in a new investment or have been saving it for your retirement. For large investments in gold and silver, you can store your gold through AU Bullion at secure third-party depository facilities, keeping it out of the banking system and safe.
So, what exactly is Canada's new “bank bail-in” policy, and why are some investors turning to gold as a result? The federal finance department implemented a bank bail-in regime in 2015 to safeguard systemically important banks, also known as Canada's Big Six or too-big-to-fail banks. If a bank runs out of capital, it can use a system called a “bank bail-in” to turn long-term, tradable debt obligations into common shares. The bank won't need a significant bailout from the government because of this. A struggling bank's recapitalization becomes the responsibility of shareholders and creditors, but as a depositor, you are also a bank's creditor.
There were rumors that something comparable might take place in Canada after a bank bail-in system in Cyprus resulted in equity being converted from 47.5 percent of deposits exceeding 100,00 euros. In other words, the bank took money out of your account to save itself. Until the Finance Department made it clear that private deposits—including GICs—would be exempt, the Canadian government had been vague about the policy's language. However, there was no mention of unsecured deposits of more than $100,000.High-net-worth investors still have a lot of questions, especially since it is unknown how one of Canada's Big Six banks would get into such trouble. However, Mark Carney, the former governor of the Bank of Canada, did not imply that banks could not touch private deposits when he stated that doing so would be “hard to fathom.”
Even in the most severe financial crisis, you can shield your savings from the bail-in regime by storing them in a secure location in an independent storage facility like the one Silver Gold Bull works with. The bail-in system may be put to the test sooner rather than later as the real estate market in Canada is headed toward a bust and major banks have large real estate portfolios.
Give us a call if you want to add precious metals to your investment portfolio or if you don't want to spend your own money on a bank bailout. When you invest your savings in precious metals like gold and silver, they are safer.
