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JP Morgan Another Reason to Invest in Gold Coins

JP Morgan has given the world another reason to invest in gold coins instead of placing your money anywhere near the grasp of bankers. The major investment bank, headed by the notorious Jamie Dimon of too-big-to fail fame, has lost $2 billion on bad trading in the derivatives market, as was initially reported. If that’s not good enough reason to buy gold, just wait.

Gold fell more than 2 percent after a US home sales report brought better than expected news to the markets and signaled a sell-off. Prices in gold were as low as $1,534.25 per troy ounce, or 2.15 percent decline. Gold is entering one of its most affordable periods in recent markets, which is a very welcome attribute given the activity in banking.

It should be clearly remembered that not nine months ago, the two centuries old investment bank MF Global made a bad bet on European Sovereign debt and declared bankruptcy. One would hope that American banks would be on stiff notice after that kind of behavior, but Jamie Dimon’s JP Morgan has apparently let its traders run amok.

Also keep in mind that JP Morgan is the recipient of massive amounts of bailout capital from the US taxpayer. For all intents and purposes, this is a publicly owned company and they own some duty to the American taxpayer whose cash kept them from insolvency. But JP Morgan and Jamie Dimon apparently don’t consider that factor much when making trades.

This is all a bad show that will surely repeat in the American banking sector. We said at the time of MF Global that there would be further trouble with other US banks, though it was impossible to say what kind of trouble and which banks specifically it would affect. It is simply the nature of the investing game in the current model. The risks that must be taken are too great and we will necessarily experience blowback from this activity.

That is why the most prudent American investors are taking their money away from the reach of Jamie Dimon and any bank who would engage the public’s money in similar banking folly. The best way to do this is to buy gold and silver and hold gold and silver. The gold and silver you buy and store is physical ownership of a tangible asset that men like Jamie Dimon can’t touch. Conscientious Americans invest in gold coins.

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