Record-Breaking Bank Failures Drive More Investors to Gold says Capital Gold Group

Record-Breaking Bank Failures Drive More Investors to Gold says Capital Gold
Group

LOS ANGELES, July 7 /PRNewswire/ -- Seven more U.S. banks were seized by
regulators on July 2, 2009, pushing this year's total bank failures to 52 as a
result of rising losses on home mortgages, commercial real estate loans, and
defaults on consumer credit cards. Even more startling is that bank closures
barely make the news these days.

Serious investors, however, are keeping a close watch on the instability of
the banking system, according to Capital Gold Group, Inc., a premier provider
of precious metals assets in the U.S. with headquarters in Los Angeles.

Capital Gold Group reports that investors holding cash in low-yielding bank
accounts are turning to the safety and protection of physical gold that they
can hold in their own hands and which they control, rather than allowing their
money to sit in a bank earning next to nothing or rolling over a low-yielding
CD for an additional term, especially considering that bank may not be there
next week or next year.

Gold has traditionally been a safe store of wealth for anyone looking to
preserve and protect their long-term savings and retirement, and today more
than ever, commercial banks dislike gold because it represents competition for
investment dollars and savings, and because they can't make money without your
money on deposit.

Most recently seized were Founders Bank of Worth, IL; Millennium State Bank of
Texas, Dallas, TX; First National Bank of Danville, Danville, IL; Elizabeth
State Bank, Elizabeth, IL; Rock River Bank, Oregon, IL; First State Bank of
Winchester, Winchester, IL; and John Warner Bank, Clinton, IL.

The Federal Deposit Insurance Corp. said its roster of problem financial
institutions grew to include 305 banks and thrifts in the first three months
of this year. On March 4 of this year, Federal Deposit Insurance Corp.
Chairman Sheila Bair said the fund it uses to protect customer deposits at
U.S. banks could dry up amid a surge in bank failures. "A large number" of
bank failures may occur through 2010 because of "rapidly deteriorating
economic conditions," Bair said.

As of June 30, regulators had seized the most U.S. banks this year since 1933,
a total of 45, with six months left to go.

"Banks are making good efforts to deal with the challenges they're facing, but
today's report says that we're not out of the woods yet," FDIC Chairwoman
Sheila Bair said in a statement. "As I see it, we're now in the cleanup phase
for the banking industry."

"Troubled loans continue to accumulate, and the costs associated with impaired
assets are weighing heavily on the industry's performance," Bair said in a
statement.

The names of banks on the watch list are kept secret to prevent runs that
could destabilize them further. But at the pace at which failures are
happening, it won't be long before we learn the names of those financial
institutions in trouble.

In the meantime, record numbers of investors aren't waiting around. They are
moving their retirement assets out of the banks, the stock market and money
markets and into physical gold IRAs, a traditional hedge against volatile
markets and returns that can't keep up with inflation.

Those with other long-term savings to protect opt for direct delivery of gold
straight into their homes. Both of these options are available through
Capital Gold Group, Inc. which can be reached at 800-510-9594.

For this and all the latest news and information on the domestic and global
markets and their impact on your investments and gold, listen to "The Gold
Show" radio program with Jonathan Rose, CEO of Capital Gold Group, Inc., by
visiting www.safeasgold.com and clicking on "Listen to the Gold Show".
Listeners on the go may subscribe to "The Gold Show" podcast on the same CGG
homepage.

"Ask Mr. Rose", a new feature recently added to The Gold Show, allows
listeners to submit questions to be answered by Mr. Rose on the radio program
by visiting www.askmrrose.com and completing the easy to use submission form.

Jonathan Rose is a renowned speaker and commentator on gold markets worldwide
including the U.S., Europe, Asia, Hong Kong, Singapore, and Malaysia. "The
Gold Show" can be heard on a number of CBS, Citadel Broadcasting, and Clear
Channel affiliates.

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Websites:
www.safeasgold.com
www.safeasgold.us
www.GoldIRA.com
www.IRAGold.com

SOURCE Capital Gold Group, Inc.

Brenda Whitman, 1-800-510-9594 x295