With all that’s going on in the credit markets, and two more new bank failures on Friday, I am slowly taking my money out of my account at E-Trade and diversifying into physical gold and silver, as well as into my account at goldmoney.com.
Etrade had it’s share of problems last year when it had to be bailed out due to it’s own share of subprime loan exposure.
With the physical metals, you own real money, and don’t have to worry about dumb people running banks or the whims of politicians who make up new laws without considering the devastation it may have on your investments.
Of all the banks, it seems that Wells Fargo is the most solid right now, and I keep my checking accounts with them for everyday banking. However, Wells is the country’s 2nd largest mortgage lender in the U.S., and Warren Buffet says they could experience “unusually large losses”.
So no banks are truly safe, and by keeping your money in banks you are taking on counter-party risk, but we do know that real money will always have value!