December 6, 2012
Evidently, the world’s oldest bank is an Italian house called Monte dei Paschi di Siena.
MYM blog readers may recall that Italy is in bad economic and fiscal shape. Italy’s problems are overshadowed by those of Greece and Spain, but, like much of Europe, Italy is in trouble as well.
One sign of that is the announcement this week that Standard & Poor’s has downgraded Monte dei Paschi di Siena, Italy’s–and the entire world’s–oldest bank, to junk status (BB+).
The bank has been around since 1472–20 years before Columbus voyaged to the New World.
A track record going back nearly 600 years is not enough for investors to depend on in today’s uncertain world. Investors would do better to depend upon an asset that has a track record of security and stability that is 10 times as long as that: GOLD.