RECOMMENDATION:     BUY Silver:  BUY  10 rolls of  AMERICAN SILVER EAGLES  OR  5  1 KILO BARS  of Silver:                      

RECOMMENDATION : BUY TO HOLD GOLD 5 ROLLS OF AMERICAN GOLD EAGLES  YOU GET 1 TROY OZ OF GOLD, THEY ARE STRUCK  at   the US Mint with a $50 denomination, making them collectibles, as well as bullion . 

Therefore you get the TAX ADVANTAGES  as per deferred tax and capital gains .

WITH GOLD AMERICAN EAGLES THEY TRADE AT A PREMIUM  ABOVE THE SPOT PRICE.  When markets are in these conditions ,premiums on Gold Eagles jump substantially. 

 EXAMPLE:  During the beginning of the PANDEMIC, when gold went to $2,000 per oz..: "GOLD EAGLES " were demanding a bid premium of 10% over spot .That means you could have sold Gold Eagles @$2,000 when spot was $2000 per oz.

The money is made in the premium ,Numismatic/collectible, with wholesale execution on pricing  by our firm as market makers broker dealers in rare coins & precious metals.

Order Desk :646-627-7165

Kelly D. Fontaine

Managing Member

99 Wall Street

New York, New York 10005

Telephone:(646-)627-7165

Gold purchases from central banks reached a record during the last quarter, revealed the World Gold Council's quarterly report. But the caveat was that the big players remain anonymous.

A total of nearly 400 tons was bought by central banks in the third quarter, the most on record. This also marked a 300% jump from the same period a year ago, the World Gold Council said in its Gold Demand Trends report released Tuesday.

Year-to-date, central banks bought 673 tons, more than any other annual total since 1967 — when the U.S. dollar was still backed by gold.

Turkey, Uzbekistan, and Qatar emerged as the biggest known buyers. But there was still a sizeable unknown contingent. "The level of official sector demand in Q3 is the combination of steady reported purchases by central banks and a substantial estimate for unreported buying," the WGC's report pointed out.

Countries known for not reporting their gold purchases regularly include China and Russia.

"Not all official institutions publicly report their gold holdings or may do so with a lag. It's also worth noting that while Metals Focus suggests purchases occurred during Q3, it's possible they may have started earlier in the year," the report noted.

From what is known, the emerging market banks are leading the pack in official gold purchases.

Turkey bought 31 tons of gold in Q3, which boosted its gold reserves to 489 tons. Uzbekistan has been a consistent buyer and added 26 tons to its gold reserves during the last quarter. And the Qatar Central Bank has increased its activity, buying 15 tons of gold in July, which is its biggest monthly acquisition on record, according to the report.

The biggest net seller in the third quarter was Kazakhstan, which reduced its gold reserves by 2 tons. "It is not uncommon for central banks who purchase gold from domestic sources to swing between buying and selling," the WGC said.

Click here to look at other parts of the WGC's report.

Record gold purchases by central banks are in contrast to what has been happening with the gold price. The precious metal has been falling for seven straight months in response to aggressive tightening by the Federal Reserve that is boosting the dollar and U.S. Treasury yields.

 Will the FDIC Be Able to Handle a Banking Crisis? (SILVER OPTIMAL PORTFOLIO)-attached

The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government. The FDIC claims to insure bank deposits of up to $250,000 per bank if the bank were to fail. Despite a popular misconception, the FDIC will not insure multiple accounts for $250,000 each. Instead, the insurance is for the depositor’s total at an insured bank. If there is $150,000 in checking and $150,000 in savings, there is $50,000 uninsured. However, the FDIC will insure the deposits at different banks. A depositor could have $250,000 at two or more different banks, and the FDIC would cover it. There are exceptions and situations where the FDIC will insure more than $250,000 for a depositor at a single bank. 

There is more than $22 trillion in the U.S. banking system. Is the FDIC funded for $22 trillion if there is a systemic collapse or if multiple banks fail simultaneously? The FDIC has $124.5 billion on its balance sheet and a line of credit from the U.S. Treasury for $100 billion. FDIC assets would cover only 1.26% of current deposits. The additional $100 billion line of credit would equate to about 2% of all deposits. The FDIC's current balance sheets and financials can be found here. If an entire football field is the responsibility of the FDIC, they can only cover the endzone line to the two-yard line.  To understand how this works, we need to discuss the 2008 financial crisis and the Dodd-Frank act.

In 2008, several banks were considered “too big to fail.” Somewhere between $700 billion and $16 trillion (depending on how you interpret government accounting) was funneled to the large banks via the Troubled Asset Relief Program (TARP). Lehman Brothers Bank was the 4th largest investment bank and became the most significant chapter 11 bankruptcy in American history. The money came from outside of the bank, i.e., the taxpayers. Since the money came from taxpayers, it was called a "bailout." The government wanted to remove the taxpayers from the risk of another bailout and create a framework for "bail-ins." Bail-ins put the risk on the shareholders and depositors of the bank. Enter the Wall Street Reform and Consumer Protection Act of 2010, also known as the Dodd-Frank Act.

The Dodd-Frank Act used an extraordinary term for executives and depositors, unsecured creditors. Also, the Dodd-Frank Act changed the legal structure of the FDIC to take receivership in a bank bankruptcy. 

What is receivership? When an individual or company declares bankruptcy, its assets are put into receivership. For example, suppose an individual declares bankruptcy. The individual will stand before a judge, who takes receivership. The judge will look at all the assets and liability claims. Assume the person has debts of $100,000, but all the assets only total $50,000. The judge would order the sale of the assets and then pay/negotiate with the creditors in priority of payment order. Some claimants will not be paid or will not get paid in full. This position of receivership is now the responsibility of the FDIC.

The Dodd-Frank Act clearly states the order of payment of bank creditors. The FDIC pays in the following order: (1) administrative costs; (2) the government; (3) wages, salaries, or commissions of employees; (4) contributions to employee benefit plans; (5) any other general or senior liability of the company; (6) any junior obligation; (7) salaries of executives and directors of the company; and (8) obligations to shareholders, members, general partners, and other equity holders. Numbers 7&8 are considered unsecured creditors and can not be paid until all other claimants are paid first. Also, the Dodd-Frank Act allows between 3-5 years for the FDIC to complete a liquidation. In a significant banking crisis event, it could be years before depositors get paid their money if any money is left to pay them.

If a bank goes bankrupt, the job of the FDIC is to distribute the bank’s assets and negotiate with creditors. Here is the scary part. Why are depositors paid last, and why are they called unsecured creditors? Part of the job of receivership is negotiating with creditors. The FDIC's job is to negotiate with unsecured creditors. If the money is insured for $250,000, wouldn't a better term be "secured creditors?" Is anyone insured for $250,000 or just “up to” $250,000? Payment would be negotiated and first come, paid according to priority. In a controlled situation with only one small to medium size bank failing, the FDIC can manage the bankruptcy and pay every depositor. However, bank runs are not well-organized and easily managed events. If another banking crisis the size of 2008 happens, the FDIC is not financially ready to pay the claims. 

The sad truth is that trusting the FDIC’s funding is like trusting social security to be there. It is entirely unsustainable, and eventually, a crisis will arise that the FDIC won’t be able to solve. It is better to be prepared and know you will be okay than to put your trust in the government to save your finances. In a cataclysmic economic event, the likelihood of a bank run is very high. Governments historically don’t behave well during banking crises. In 2004, Cyprus had the strongest currency on the planet. It was 2.5 USD for 1 Cyprus pound. Shortly after, Cyprus joined the European Union and adopted the Euro. By 2012, Cyprus almost bankrupted Europe, and a bank run happened. The government seized 47.5% of all assets above €100,000 from banks. Also, the response to the bank run was that depositors could not pull more than €300 out of their accounts. Cyprus went from the strongest currency on earth to a bank run in eight years, and people couldn’t access their money. The primary problem in Cyprus banks was bad debt ratios. The entire U.S. has a bad debt ratio. 

Owning physical gold and silver is like insurance for your money. Gold and silver are not insurance like the FDIC, which is called insurance, but act as the bankruptcy receiver. Gold and silver are similar to actual insurance that is easy to cash out whenever needed. Gold and silver are highly liquid and considered currency agnostic. If the economy goes entirely south and you need money in a hurry, gold and silver can be turned back into every currency on planet earth. In the event of a bank run, bank websites will probably be shut down. It will be necessary to go to the physical branch to get money. If it were to come to it, would you prefer to liquidate gold and silver or stand in line to file an FDIC claim and then wait years to get a portion of your money back?

The choice is yours. You can keep your money in the bank and hope for the best or get your excess cash out of harm’s way with precious metals. The experts Global Monetary Exchange, LLC  are here to help.

Kelly D. Fontaine

Managing Member

Global Monetary Exchange, LLC

Office: 646-627-7165