The reason why you should get into gold now is liquidity. When the ‘run on the bank’ begins, we won’t be able to perform the transaction of ‘taking our money out’ because of the fractional reserve banking system. And it is ‘The Bank’ that decides how and when this happens by adjusting the money supply. There will be no warning.  

For every pound deposited, a bank is allowed to lend it back out to a factor of 10. That’s what they mean by fractional reserve banking. Looking at it backwards – the deposit is a fraction of what is lent out, it’s like double speak. A bank cannot lend out its own money because that would be illegal, so it lends out the money which we have deposited instead – they run two sets of books. The HSBC current account is now paying 0.00% interest (yes, you read that right, 0.00%) and is charging 19.9% as an overdraft rate. And when it lends our deposited money back out at 4.7% as a mortgage and up to 6.9% as a personal loan, you can understand why the banks have the tallest buildings in town. Because they multiply it by 10, remember! So on what we deposit, they are potentially earning 47% and 69% respectively.  

So how all is this going to pan out? Pretty much the same as last time. The money supply will be cut and there’ll be a run on the bank. When this happens and we go to the bank to get our money, we won’t be able to withdraw the physical cash because it will have all been issued. The cash points – the hole in the wall – will be empty. But it’s not just the physical cash. A bank can only issue what it has on deposit and there’s going to be 10 other people all looking for the same. So it’s not only the cash being taken out of the cash point but what we – and many, many others like us – are going to try to transfer from one bank to another.  

It was like this with Northern Rock. The last time this happened, a lot of people lost a lot of wealth and they were completely powerless, completely unable, to do anything about it because someone had got there first.  

So what’s the solution? Get your wealth into something of substance. Something tangible, desirable, of value and liquid.  Physical Gold and Silver has been a traditional store of value for centuries for times exactly like this.  

Call us on 01769 618618 for current prices and availability. Take control of your finances, get out of paper and enter the safe havens of Gold and Silver – the only real money out there.

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