BASEL 3 – starts June 28th, 2021
Not sure how much everyone knows about Basel 3, or is following it.
Basel 3 is a revised set of rules that apply to how banks run their businesses.
The drafting of Basel 3, started in 2008 after the Lehman Brothers collapse.
There was a Basel 1 and 2 years earlier.
Basel 3 terms are set by the Bank of International Settlements (BIS).
The BIS is considered the Central bank of all Central banks.
BIS is setting new standards for banks and on how they value their gold holdings.
Euro Banks will no longer be able to value unallocated gold (paper gold) at full value.
Therefore, they have to get rid of paper gold and replace it with real gold.
This is effective June 28th 2021, for Euro banks.
At a later date, it will be rolled out to UK banks.
And when that occurs, this may lead to the end of the LBMA (London Bullion Market)
… or at the very least a severe downsize.
Excerpt…
“So, from 28th June 2021, Europe will no longer classify unallocated Gold as a Tier 1 asset. It has to be a provable 1:1 ratio which should lead to a physical Gold market. This just has to be viewed as bullish for Gold, and all other precious metals.”
Great article. I have been buying all metals for years with Basel lll in mind. Gold was 1200 for so long lol. And silver hammered so much that the premiums where 1 or 2 bucks .
www.investing.com
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The rumour is that Russia and China forced/pressured Basel 3 into existence sooner by threatening to introduce a gold backed currencies.
The idea is that the USD and all currencies related to or pegged to will experience severe devaluation in the years to follow.
You can certainly understand the ramifications for Gold and PM miners.
Cheers
Rob
Thanks for the excellent summary RW. I have been keeping up with the various articles posted about it recently. Everyone at the Tent will now be up to speed if they weren’t.
Thank you Sir Chartmaster.
To all, I accidently cut and paste the same article twice.
The second article I meant to paste was the following:
https://www.gold-eagle.com/article/bank-for-international-settlements-caves-russia-and-china