Gold incrementally higher in quiet trading ahead of inflation data
More than a half-trillion dollars wiped out in banking crisis so far
(USAGOLD – 5/8/2023) – Gold is incrementally higher in quiet trading ahead of Wednesday’s inflation data. It is up $8 at $2027. Silver is down 2¢ at $25.72. Though concerns about the banking system have calmed for the moment, they haven’t gone away. A number of money managers, including Doubleline’s Jeffrey Gundlach, believe we are only in the early stages of the bank crisis. First Republic Bank, he says, was not the “last chapter in this regional banking problem.” That said, the damage already done has been significant.
“[T]he regional banking crisis is already worse than the global financial crisis—by one metric, anyway,” writes US Global Investors Frank Holmes in an analysis released Friday. “More than half a trillion dollars in assets have been wiped out this year from the failures of Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank. That significantly exceeds the amount that was disrupted in 2008, when 25 U.S. banks went under.”
Total assets lost in bank failures
(2001 to present)
Chart courtesy of the Federal Deposit Insurance Corporation (FDIC) • • • Click to enlarge.
