The collapse of Silicon Valley Bank (SVB) has renewed doubts about the stability of the U.S. banking and global financial system. At one point, SVB was the 16th largest bank in the U.S. and counted almost 50% of VC-backed startups as clients.

Gold had a strong rally in early 2023, reaching a 9-month high of $1959 in February before declining to $1808 by the end of the month (-7.71%). However, industry experts believe that gold’s outlook has improved since then.

Almost exactly a year after Russia launched a full-scale invasion of Ukraine, we hoped there would be some resolution or cease-fire. But unfortunately, the opposite has happened.

On January 19, 2023, former Fed Vice Chair Lael Brainard boldly proclaimed “inflation is cooling.” Brainard, whom President Biden named his new top economic advisor less than a month after these statements, may have made the latest misguided inflation soundbite from the Federal Reserve.

Gold rightfully earned the moniker “crisis commodity.” For many millennia, it has proven itself time and time again as a store of value, a respected medium of exchange, and a hedge against economic crises. It is a tangible asset with limited supply and persistent demand that often increases in value during economic turmoil.