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Thursday, 9th July 2009 (1408 views)

Record numbers of long-term investors concerned over the stability of the banking system are ditching low-yield bank accounts in favour of gold-based savings vehicles, it has been claimed.

Capital Gold Group (CGG) said seven more failing US banks were taken over by regulators on July 2nd, bringing the total so far in 2009 to the highest level in a single year since 1933.

With Federal Deposit Insurance Corporation chairman Sheila Bair warning that "rapidly deteriorating economic conditions" could trigger a rush of further banking failures in 2010, many serious investors are shifting their retirement assets to the "safety and protection" of physical gold, CGG noted.

It added that among the most popular destinations for assets coming out of US banks, equities and the money markets are physical gold individual retirement accounts, which act as a "traditional hedge against volatile markets and returns that can't keep up with inflation".

CGG is a provider of internationally-recognised gold coins and bars, as well as customised investment portfolios employing gold for asset protection and retirement planning.

 

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