{"id":12467,"date":"2023-03-29T17:11:26","date_gmt":"2023-03-29T14:11:26","guid":{"rendered":"https:\/\/www.robomarkets.com\/blog\/?p=12467"},"modified":"2024-01-30T18:10:31","modified_gmt":"2024-01-30T15:10:31","slug":"how-is-the-us-banking-crisis-affecting-the-gold-mining-industry","status":"publish","type":"post","link":"https:\/\/www.robomarkets.com.cy\/blog\/stock-market\/how-is-the-us-banking-crisis-affecting-the-gold-mining-industry\/","title":{"rendered":"How Is the US Banking Crisis Affecting the Gold-Mining Industry?"},"content":{"rendered":"\n

The crash of Silicon Valley Bank triggered customer mistrust of regional banks which resulted in a substantial flow of funds to large financial institutions such as JPMorgan Chase & Co.<\/a> (NYSE: JPM), Citigroup Inc.<\/a> (NYSE: C), Wells Fargo & Co<\/a>. (NYSE: WFC), and Bank of America<\/a> (NYSE: BAC).<\/p>\n\n\n\n

To reassure the public and keep banks from going bankrupt, the US Federal Reserve System (Fed) has begun lending to financial institutions. This practically marks the end of the Quantitative Tightening (QT) programme as the Fed's balance sheet increased from 8.3 trillion USD at the end of February to 8.78 trillion USD by 24 March.<\/p>\n\n\n\n

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The regulator is in a tricky situation: new interest rate hikes can aggravate the problems of financial organisations but a growth in the Fed's balance might lead to higher inflation. For now, it is difficult to forecast further developments: on the one hand, experts expect the banking crisis to get worse; on the other hand, there are concerns about rising inflation.<\/p>\n\n\n\n

In such circumstances, there is a growing demand for protective assets, with people turning to bonds<\/a>, gold<\/a> which have never been seen as safe-haven assets before. One way to invest in gold is to buy shares<\/a> in companies that mine or sell gold. Let’s take a look at two industry players, namely, Franco-Nevada Corporation (NYSE: FNV), and Wheaton Precious Metals Corp (NYSE: WPM). Judging by their financial performance presented below, they are in a stronger position than their competitors.<\/p>\n\n\n\n

<\/span><\/a>Company selection criteria<\/span><\/h2>\n\n\n\n