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When considering the phrase “losing investment,” most think of speculative investments like stocks, bonds, and real estate.  In fact, when considering short-term holdings of “PAPER PM Investments” like GLD, SLV, and mining stocks, risks are equally high; as not only are normal market risks a factor, but relentless Cartel manipulation.

But I’m not here to BASH “paper gold” – for once – but the most GUARANTEED “money-losers” of all time; MONEY MARKET FUNDS and CERTIFICATES OF DEPOSIT.  Yes, I know, your principal is essentially guaranteed in these vehicles; and by “essentially,” I mean that from time to time, money market funds “break the buck”; in other words, their net asset value falls below the standard $1.00/share…

Why Money Market Funds Break The Buck

In fact, this occurred several times during Global Meltdown I in late 2008 (what didn’t?), forcing the U.S. government to backstop ALL money market funds…

The hidden cost of bailouts: The money market mutual funds and moral hazard

Moreover, given the risk of BANK FAILURE – whether mega-banks like Bear Stearns, Lehman Brothers, Washington Mutual, Merrill Lynch, or Wachovia; or small ones, like “First United Bank” – such risks are omnipresent…

Bank failure in Illinois brings 2012 total to 43

Remember, FRAUDULENT FASB accounting rules changes have allowed banks to misrepresent the value of their estate and derivative holdings since 2009, just as the real estate collapse accelerated.  Thus, many banks are technically INSOLVENT, and will certainly be recognized as such as the U.S. economy sinks deeper into DEPRESSION…

FASB relaxes accounting rules for banks on assets – April 2009

Moreover, given that REAL inflation is closer to 9% annually; while even the “massaged” CPI depicts 2%…

 

…it seems irresponsible – if not suicidal – to accept sub-1.0% interest rates, particularly for illiquid CDs that can only be withdrawn at significant penalty…

especially when – care of the Fed’s Zero Interest Rate Policy (ZIRP) until “at least mid-2015,” such funds must continually increase risk to maintain yields…

According to ICI, money market funds accounted for 23% of all U.S. mutual funds as of year-end 2011, totaling $2.7 TRILLION.  I looked long and hard for an estimated size of the U.S. Certificates of Deposit market, but could not find one.  Irrespective, I think it’s reasonable to estimate a figure in the HUNDREDS OF BILLIONS of dollars.

Let’s assume a $3+ TRILLION market for U.S. CDs and MMs, and compare it to the measly $150 BILLION of annual, worldwide gold production; let alone, the paltry $25 billion of annual, worldwide silver production; and, for kicks, the miniscule $12 billion of annual, worldwide platinum production.  In other words, A LOT of PRINTED MONEY poised to swamp the meager PM supply; particularly, as it will be intensely competed for by ALL the world’s citizens.

Hopefully this RANT will cause you to consider the “safety” of CURRENCY held in your bank, compared to the immutable wealth of REAL MONEY held in your own possession.

PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.