Where the savings are safe

Systemic risks can certainly worry investors. You should also be concerned. Because not every form of investment is safe. Precious metal and precious metal stocks offer a way out.

Banks are assuming waves of insolvency due to the corona crisis. But if there are high defaults on bad loans, the banks will also have to swallow. In fact, some institutes might not survive. All the more so since the zero interest rate policy has almost eliminated a large source of income, the business model of credit institutions, as it were. At least the banks that are not systemically important will then probably not be able to expect help from the already damp government coffers.

For investors, the question arises as to how secure the savings will be in the event of bank insolvency. If the money is only in the account, call money account or invested as time deposit, then the money falls into the bankruptcy estate. Of course, there are good security systems in the German banking system. At least up to 100,000 euros deposits should be safe. But can the system intercept all of this if a number of banks snap up? Investors could feel uncomfortable.

Those who want to be on the safe side invest their money in so-called special funds. This includes in particular funds, but also stocks, bonds and certificates that are in the depots. Because these vehicles remain the property of the investor. If the custodian bank goes bust, all you have to do is open a custody account with another bank and transfer the papers. It is therefore surprising that there is no longer a shift in investments towards special funds. From today’s perspective, physical gold and other precious metals in particular are also safe in direct access.

A combination is offered by shares in precious metals companies with fundamentally promising projects, such as Karora Resources and MAG Silver.

Karora Resources – – owns the Beta Hunt and Higginsville gold mines in Western Australia. The strong second quarter brought gold production close to 25,000 ounces of gold.

Convincing in the silver sector MAG Silver – -. Among several projects, the Juanicipio project (together with partner Fresnillo) in Mexico is the main one. The first production tunnel should be ready around the middle of next year.

Current company information and press releases from Karora Resources (- -) and MAG Silver (- -).

In accordance with Section 34 of the WpHG, I would like to point out that partners, authors and employees can hold shares in the respective companies addressed and that there is therefore a possible conflict of interest. No guarantee for the translation into German. Only the English version of these messages applies.

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