Gold as Money again- officially
It is classified as Tier I asset and can be counted as CB’s reserve along with Dollar.
This is news to me.
All CB’s are buying gold except US has sold out its gold.
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Gold Has Become Money Again
Fittingly, gold is an alternative to the dollar. In the past, it has been a protector or hedge against
the debasement of currency, because it is less susceptible to government manipulation. Last year,
central banks purchased a near record 23 million ounces, becoming the world’s largest buyer,
adding to their reserves at the highest pace in 50 years. Central banks keep dollars in reserve but
under the new Basel III standard, gold has taken on more importance and can be today valued the
same as dollars. Basel III returns gold as a meaningful reserve asset whereby, gold is now risk
weighted as a Tier I asset as part of total reserves. Thus, gold reserves held on central banks’
balance sheet can be valued at 100 percent allowing them to increase their liquidity and revalue
their balance sheets upward. Gold has become money again.
https://www.gold-eagle.com/article/sprout-less-gold-now-tier-1-capital
Thanks Sir Bikko.
Very interesting and exciting news for Gold
Question:
With this fantastic Tier One Rating and CB Buying …..So why is Gold still stuck in the Muck ?
I know the Manipulation Crowd says….Paper selling to suppress the price for the Big banks to load up…then Blast off !
Maybe this time is different
pass the popcorn.
Market behaves not in the same logic as we think.
Example from 2000 to 2007 Central Bankers used to meet once a year in Washington and decide how much gold they in total they will sell together. 400tons etc. finally they gave up . India bot 200 tons in 2008?. Selling is bad and expected gold to stuck in muck or go down. — No did not happen . Infect gold powered higher from $250 to $1000 by 2008 despite heavy selling by CB.
This directive is just instituted. We will see what happens when each CB decides to keep their credit score higher they may want to maintain minimum requirement of 6% of reserve in gold. Most CBs have less than 4% gold. They need to raise it to 6% diversify.
All it may do is to have a floor for gold now if not skyrocket which we all want. IMO
This also may be saying that Basel is expecting US dollar demise so CB better watchout!!!
I also heard this could be bad for Gold … any thoughts why this would be good or bad?
Never mind, looks like some of this info is in the article … should have read it first 🙂
Another piece of the puzzle