October 27, 2009 - Two of the largest regional banks in the Southeastern United States lost about $400 million each in the third quarter, and the intensifying crisis of regional bank failures has garnered the attention of economists and investors nationwide. Although some of our nation’s largest banks posted profits during the third quarter, they have continued to tally more defaulted loans during the last two years. This trend has showed no signs of slowing, so many large banks have recently increased their amount of emergency capital. JPMorgan-Chase, Goldman-Sachs, and other financial conglomerates have maintained throughout the last three weeks that loan losses will likely continue to rise for the next two years, as borrowers abandon cars and homes that they cannot afford. These unstable economic indicators have prompted many investors to shift bank holdings to gold bullion.

Physical gold bullion investments are highly recommended as a short-term solution to a questionable banking system. In addition to the speculative dilemma that has been created by our nation’s largest banks, the health of many regional banks has become an issue that requires decisive action. Last year, it seemed like regional banks would remain immune to the implosions of Wall Street’s more sizable institutions. AIG, Citigroup, and Bank of America were failing, but banks like Regions Financial and SunTrust were holding their own. Those two banks have collectively lost almost $1 billion in the previous three months, and the majority of regional banks have reserved obscene amounts of cash for future loan losses. This development is eerily similar to the steps that many of America’s largest banks took before their own respective failures. Investors who trust their own ability to manage money better than the bankers are encouraged to invest in gold bullion for a 1-14 month position in the gold market, and certified gold coins should be utilized as the investment vehicle for longer-term holds. 

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Jonathan Monroe

Senior Staff Writer - Gold-Bullion.org