Investors this morning have seemingly turned to hard assets in the wake of several banks going belly up over the course of the last week, and related government intervention on the matter.
Yesterday it was announced in a joint statement by the US Treasury, the Federal Reserve, and the FDIC that the government would be backstopping depositor funds tied up in the dismantling of Silicon Valley Bank (NASDAQ: SIVB). At the same time, similar measures would be taken for Signature Bank (NASDAQ: SBNY) depositors, with that bank shuttered yesterday by state regulators.
Taxpayer funds will not be used to backstop deposits, but rather the expense will be borne by the banks via a special assessment.
Following the government intervention, investors have turned to hard assets this morning as a means of finding financial stability.
Bitcoin is amid a current rally, rising as high as $23,725, an increase of over 6.4%.
Gold meanwhile has increased 2.40% on the day, climbing to $1,912.
Silver is also a big winner, having hit a high of $21.82, before receding slightly to $21.77.
The S&P Regional Banking ETF (NYSE: KRE) meanwhile has declined by 14% on the day, falling to $43.50, as investors look to reduce exposure to regional banks that are currently extremely volatile.
Information for this briefing was found via Sedar and the sources mentioned or linked. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
