Where savings are safe
Banks are expecting waves of insolvencies due to the Corona crisis. But if there are high defaults on the then rotten loans, the banks will also have to swallow. It could even happen that some institutions will not survive. This all the more so as the zero-interest rate policy has almost eliminated a major source of income, quasi the business model of the credit institutions. At least the non-systemically important banks will then probably not be able to expect help from the already numb state coffers.
For investors thereby the question arises, how safe the saved in a case of the bank insolvency is. If the money lies only on the account, daily deposit account or as time deposit invested, then the money falls into the insolvency mass. 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 this when a whole series of banks snap up? Investors could get a bad feeling about that.
Who wants to be on the safe side invests his money in so-called special assets. These include in particular funds, but also shares and bonds as well as certificates that are held in the securities accounts. Because these vehicles remain the property of the investor. If the custodian bank goes bankrupt, all that is required is to open a securities account with another bank and transfer the securities. So, it is quite astonishing that there are no more shifts in the investments in the direction of special assets. From today's point of view, physical gold and other precious metals in particular are in direct access.
A combination is offered by shares of 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 of nearly 25,000 ounces of gold.
In the silver segment MAG Silver is convincing. Among several projects, the Juanicipio project (together with its partner Fresnillo) in Mexico is the main project. The first production gallery is expected to be ready by the middle of next year.
Current company information and press releases from Karora Resources (https://www.resource-capital.ch/en/companies/karora-resources-inc/) and MAG Silver (https://www.resource-capital.ch/en/companies/mag-silver-corp/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also