What is the effect of bank failures and FOMC interest rate decisions on your gold and silver stacking strategy?

by | Jul 16, 2023 | Bank Failures | 30 comments




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How are Bank Failures & FOMC Interest Rate Decisions Impacting Your Gold & Silver Stacking Strategy?

In recent times, bank failures and decisions made by the Federal Open Market Committee (FOMC) regarding interest rates have had a significant impact on various investment strategies. One such strategy that has been affected is the practice of stacking gold and silver. Stacking gold and silver refers to the accumulation of physical gold and silver for investment purposes. Let’s examine how these factors are influencing the gold and silver stacking strategy.

Bank failures have long been a concern for investors, especially in times of economic uncertainty. When a bank fails, it leads to a loss of confidence in the financial system, which often results in a shift towards safe-haven assets such as gold and silver. The precious metals are considered a store of value, and investors tend to flock to them during turbulent times. Bank failures can trigger a flight to safety, as individuals seek to protect their wealth from potential systemic risks.

Moreover, bank failures can also cause a decrease in trust in paper currencies. When confidence in the banking system erodes, investors often turn to tangible assets like gold and silver, which are not tied to any specific fiat currency. These precious metals have historically retained their value, even during periods of hyperinflation or currency devaluation. Therefore, as bank failures continue to occur, the demand for gold and silver as a form of wealth protection may increase, subsequently impacting the stacking strategy.

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Another crucial factor influencing the gold and silver stacking strategy is the FOMC’s decisions regarding interest rates. The FOMC is responsible for setting the target federal funds rate, which represents the cost of borrowing money for financial institutions. Changes in interest rates can have a profound impact on the markets, including the price of gold and silver.

Typically, lower interest rates make it cheaper to borrow money, and investors may be more willing to take on riskier assets like stocks or real estate. During periods of low interest rates, the opportunity cost of holding gold or silver, which does not generate a yield, is often outweighed by potential returns from other investments. Consequently, the demand for precious metals may decline, impacting the stacking strategy.

Conversely, when interest rates rise, borrowing becomes more expensive, which could result in a shift towards safer assets like gold and silver. Higher interest rates may also slow economic growth, resulting in increased economic uncertainty and a potential decrease in stock market performance. This may drive investors towards precious metals as a hedge against these uncertainties.

It is important to note that bank failures and interest rate decisions are only a couple of the many factors influencing the gold and silver markets. Other factors such as geopolitical tensions, inflation expectations, and market sentiment can also play a significant role in shaping the stacking strategy.

Ultimately, investors must carefully assess all these factors when formulating their gold and silver stacking strategy. They need to monitor the health of the banking system, stay informed about the FOMC’s interest rate decisions, and remain aware of other market dynamics that can impact precious metal prices. By considering all these elements, investors can make more informed decisions about when and how to stack gold and silver effectively.

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30 Comments

  1. Nickel Stacking

    yep makes you save money ,then can supplement income later .

  2. B² to the 9th power

    Glad I focused on gold last year. If I made a purchase now it would be on silver but I'm focused on numismatics this year.

  3. Ag Stacker 1776

    Steady Stackin as always. Just stacking a little more cash now.

  4. Eli

    Indeed, gonna keep stacking, (mainly 10ozers) even up until the fed pivot (summer) but I’ll slow a bit then!! it’s sad to hear that the business owners that had money in the banks that collapsed won’t get their money until several months from now even after the ‘rescue’

  5. Czech Stacker

    Hero Bullion is one of my favorite online dealers. Great analysis.

  6. silver supplement

    No space concerns with silver for me. I’ll stack a house of bricks if I need to lol. Still hunting deals here.

  7. Tomoko's Enterprize

    BEAN !. Long time no see bud. I get so busy I forget many of my friends here. I am still happy buying silver shot to stack and make things for others. I love the sound and feel of a tube of silver in hand. Esp. a tube of 25 Maples, (LOL.) Yer lookin and sounding fine old friend. Take care and love those everything here bud.

  8. Silver Barr

    Because of current volatility I am halting on purchases for a bit. I got in a couple recent orders before the hike but missed my last Thursday night chance to get one more in. It’s only a pause to watch what happens this next week, then back to accumulating as usual.

  9. Cash and Coins

    I've stayed heavy on gold, yet I always sprinkle with silver. It is a crazy time. Enjoyed the video. I do buy more numismatics lately. Congrats on the the pick ups.

  10. Trident

    I’m staying far far away from gold. Bought more silver, but I’m thinking numismatics might be where I’m turning my attention to for the next couple months.

  11. snomobila

    call me crazy, i'm still hoping for a half point increase and small window to buy some more metals before prices continue to take off. currently NOT buying metals right now. spot and premiums way too inflated

  12. Jimmy

    I like how cutsaw produces their round to flip like coins. I believe, that sets them apart. Thank you for sharing with the community

  13. SYAM KUMAR KATURI

    Sell gold and silver price is falling down..we can mine gold and silver from mines.

  14. Pistol Packing Pilot

    After these bank failures, nobody knows. I think if they don’t raise rates at all that would signal their pivot and lack of commitment to reducing inflation. But if they raise rates, how many more banks crash? Damned either way.

  15. Reefa

    As a new stacker buying about 20 ounces a month, at what prices would you stop buying silver if it continues to raise?

  16. GE TX

    Had four different orders out at once till two came in today, one earlier, and one on its way. Yup, budget shot for March, but very timely before the increase in spot for both gold and silver. Easier to wait and see when you've already exceeded your limit for the time being. lol

  17. lpandy21

    Lots to ponder next week. Thanks for the video.

  18. OldDudeStacker

    Added more 90% over the last month. Taking a wait and see attitude.

  19. Ted Lawrence

    Good idea, but do not go crazy,and put all of your eggs in precious metal. You may want to consider investing some $ in quality collector coins. They have done well historically.

  20. Tom Tharos

    Short term my six-month car insurance premiums and an unexpected $3,800 tax bill will dampen my buying. I did get some of those cut saw buffaloes and a 1 oz cut saw bar from Hero.

  21. NC Stacker

    Nice video and great pickups. I really like the bars, the design is awesome.

  22. XXXJ

    Anyone know if Liberty Coin is a reputable place to buy your gold and silver ?

  23. SilverHustlin13

    Some sweet adds Beans!! I tried to get some 1oz Unity bars and they were out of stock?! Like the poured pieces as well, Keep Hustlin!!

  24. Victor Frankenstein

    Bean, you’d think these morons would have learned from the 2008 debacle, though it was due to bad mortgage buying. The greed, and the ignorance of these “so-called” intelligent banksters is just shocking. They can blame the Fed all that they want, but it’s due to their total disregard of common sense. They deserve to fail, and the Fed, along with the clowns in The White House, have no business printing more money to save these deadbeats. The people have had all they can take with this bloating of paper money, followed by sneaky taxing, bleeding the middle class dry. Anybody with half a brain couldn’t really believe that the “Rich” will cover all this spending with “new taxes”??? It’s US, the middle class that always get screwed. Wake up, smell the coffee,and get these useless Morons out of our White House, and out of control of the Senate.

  25. Der...Nibelung

    Basically today I went to a coin show, then two other shops. I ended up selling 4 one kilo silver bars and bought 2 tubes of Eagles, 10 Kooks and $10 face of R dimes… banked the extra cash.

  26. SalivateMetal

    Some awesome pickups sir. Like those liberty and unity one oz bars! Sweet Krug as well. Gold and silver are definitely proving themselves to be that ultimate safe haven! Great thoughts my friend.

  27. Don

    Likely a short-term rebound so I would say silver is a Hold, and gold is a Sell. Gold never seems to win the battle with resistance at $2000. At least not for long. If you have profits to take here is another chance if you missed it the last time. Also, you will want cash to invest in a Financial ETF at some point, as they have taken a beating, and may go lower still. Cheers!

  28. Leif k

    Ugh, hesitated and waited on transitioning 10k of savings to metals… did add some silver last week but now nervous to pull the trigger on gold at these high prices… I plan to hold for a lifetime But hoping for a bit of a pullback. Will kick myself if 2000 is the new bottom and I missed my chance

  29. Silver Heist

    Nice little bounce on silver AND gold since the bank crisis in confidence.

  30. Noor eid

    Nice video

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