hey everyone welcome to bald guy money back on July 22nd I asked the question is your money safer in the bank or is it safer to have it stored in gold and silver in your hand since then a few notable things have happened that impact all of my viewers around the world even though a lot of these points are USA Centric the first one being that more U.S banks have failed albeit they've been smaller more manageable bank failures but the fact remains more banks have failed since I made that video


in addition to that the U.S Bond Market has continued to get crushed and we're going to talk about why that's so important in a moment but finally the U.S stock market has begun to sell off and this is all happening as Market sentiment is rapidly shifting from euphoric greed to soul-crushing fear and I said this would happen so I hope none of you are surprised now also since I made that video there are a few notable things that haven't happened the US dollar hasn't disappeared and as I've been saying for


a while that will take more time than some of you think it will the bricks supposed saviors of sound money have proven their commitment to responsible monetary and fiscal management is anything but sound and surprisingly gold and silver despite making nice bull Flags I talked about on YouTube and patreon last week have broken down giving us another chance to pick up medals at a relatively good deal and for anyone who has seen this masterpiece The Big Short you know that just like when Michael burry bet against


the U.S housing market you may have to be wrong for a little bit before you're proven right it's an age-old story when it comes to money economics and investing and that's why in this video I want to give you all an update on the emerging red flags and warning signs I'm seeing which still lead me to believe we are in store for a lot of pain at some point over the next year or so I also want to cover what options the U.S federal reserve and Treasury Department have to try to stabilize the


situation and how money in the bank Compares yet again to gold and silver in your hand today and which one I am choosing moving forward now just before we continue I want to remind each and every one of you looking to buy the latest dip on gold and silver to check out pinbacks.com why well because I shared some research with my patreon community this week and showed them that not all of the reputable online dealers in the USA are passing on the declines in price on gold and silver to their customers but pimbex is that's


just how they do business and that's why I love the free market so as I've said countless times you have absolutely nothing to lose by checking out their website and right now they have this great deal on the Australian kangaroo a coin I have in my stack I have it right here next to me right now and I can say that this coin is probably even more recognized around the world than the US Buffalo so that's pimbex.com if you want to check them out you can also reach out to them at the number on the screen and


I will share the link to this great deal on the gold Australian kangaroo in the video description I really think you should check this one out okay so getting back into it why am I even more concerned today about the health of the banking system than I was back on July 22nd well it all starts with the increasing yields on U.S bonds and treasury notes and to keep it as simple as possible what you absolutely have to understand looking at this chart on the 10-year treasury yield is that the higher this goes the more at risk the


banking system is this is what crashed First Republic Bank and Silicon Valley Banks earlier this year because as these yields go up the value of bonds held by your Banks purchased with money that you deposited the value of those bonds goes down just as you can see here on the I shares 10 to 20 year treasury bond ETF chart and although I have done some cherry picking here to show you exactly how much bonds have decreased in value I want to say that even a dollar cost average strategy doesn't reflect a


positive return on bonds these bonds are at their lowest value since the ETF was launched in 2007 and let me tell you they can go lower and what this means is that if a bank suddenly has to liquidate a lot of its Holdings of bonds that it has in order to meet the needs or demands of depositors they would not be able to recoup the money they used to purchase the bonds and considering the fact that more and more Americans are dipping into their savings as you can see in this chart I suspect the situation is


becoming dire at some banks because they will run out of money at some point leaving many depositors in proverbial limbo especially as student loan payments kick back in starting from October in the United States which is this month now some of you out there might be saying I'm not worried my bank is member FDIC well I hate to burst your bubble but the FDIC itself has less than two percent of what it needs to cover all the deposits in the United States and I'm under No Illusion that it would


need all of that money all at once but with banks already sitting on unrealized losses of more than 600 billion dollars on bonds the FDIC is in no position to save everybody when the failures start to Cascade throughout the market so that leaves us with the two options I covered back in the July 22nd video the first one being a bail in where the depositors eat the losses of the bank and lose their Bank deposits it happened in Cyprus in 2013 this is not a conspiracy theory this is absolutely possible because we've seen it happen


before now the other option is a bailout and this is paid for by taxpayers so basically the same people paying for option one but in this scenario you get to keep your bank deposits and watch the value of those deposits decline rapidly as a result of more money supply expansion so to answer the question from the beginning of the video I still believe that having a portion of your money in gold and silver today is a much better option than having all of your money in the bank the situation in the banking


business in the banking sector isn't looking much better three months on since I made that video back in July it's looking worse it's looking much worse it's why I sold a lot of my stocks it's why I've been purchasing gold and silver more regularly than I usually do over the last few months and it's also why I shifted a part of my stock portfolio out of tech and into miners so we can argue in the comments section all day long about is there a dip coming how big will the dip be when is the


right time to buy will dealers sell at a reduced price if there's a flash crash these are all great things to discuss but I want you all to keep something in perspective we are here right now all the things we suspect will happen haven't happened yet but when they do I will be happy that I've positioned myself to weather the economic storm and that I haven't over exposed myself to the many issues the financial system is facing today and with that said it's time to move on to the viewer question for this video


please remember you can submit your questions in the comments section of this video just type it below and it may appear in my next video or some video after that and this one comes from do Matthew 1666 and Matthew asks would you sell all your silver if it reaches your price target of fifty dollars to sixty dollars an ounce that's a great question because I think everyone needs to have an exit strategy an idea of what to do with a stock a precious metal or anything they own that rapidly appreciates in value in a short


amount of time now I'll start by saying that I'd never sell my entire stack that's just not an option for me because I believe a gold and silver stack is a long-term insurance policy to prepare oneself for retirement at which point I will slowly liquidate bits and pieces of the stack to cover my costs should I need to do that but that doesn't mean I won't sell off a part of it and it's exactly why I created this tool to evaluate the price of metals versus the price of real


estate because once we have a blow off top in metals and that day is coming I will trade a part of my stack my hard monetary assets for other hard assets namely income generating real estate and I will do that as the value of metals appreciates disproportionately to the value of real estate which I expect at this time when this blow off top on Metals happens I expect the actual prices on real estate to decline just as we saw between 2010 and 2012 which coincidentally is when I bought my first piece of real estate so Matthew I hope


that answers your question thank you so much for submitting it and to everybody watching that's it for this video I sincerely appreciate you tuning in for this episode if you liked it please leave a like leave a comment and share this video with friends and family if you think that it's something they need to see and until the next time we see each other everyone take care of yourselves and take care of each other see you all in the next video goodbye