Basel 3: Gold/Silver
I’m not smart enough to really understand what all of this means if holds true. I can’t cut/paste too much more because there is so much but here are some stories of interest
Last week both Martin Armstrong and Alistair MacLeod wrote about the changes to the Basel III rules and how they will greatly affect the physical and paper gold markets if implemented in their current form.
MacLeod’s article from last week is an excellent primer on the definitions and inner workings of the rules, the gold market and the changes to the rules. The short redux is that the advantage to using unallocated accounts, savings accounts which are linked to gold by holding futures contracts, will end.
We’ve discussed parts of this in the past. The process of creating fake supply to control the price of gold is on the line with these rule changes.
These rules are coming at the end of June for the European Banking System which will adopt the new Basel III rules. In short, the incentive to have exposure to gold as a pile of credit will go away if the banks can’t use any of that as part of their reserve calculations for their ASF – Available Stable Fundings.
Moreover, any physical gold they hold will be held at a 15% discount. Bottom line: these rules will make it impossible for the LBMA member banks to hold any exposure to unallocated pools of gold derviatives –futures and swaps — on their balance sheets.
am interested to hear or read discussion on why banks will or will not allow this to come to pass. Banksters control most everything so why should they allow anything that will hurt them actually come to pass w/o an out for them (not us) built in?
I’ve been checking this issue for several months for new articles which lend light. Very few do. Here’s one that makes sense. They just ignore the rules:
Hugo Salinas Price posted this analysis on Monday. He believes Russia and China pressured the BIS to change the rule about unallocated gold. He predicts
“Russia and its ally, China, have thus cancelled the power of the US and UK to keep the price of gold in a “deep freeze” for so many years.
Nobody knows how high the price of gold will be after June 28, but the higher it goes, the lower goes the international value of the Dollar, and of other national currencies that are linked to the Dollar, through the concentration of their Reserves in Dollars.
The enormous US imports of Chinese goods will have to fall to a trickle. And that reduction – the result of a return to economic reality – will decimate the standard of living of Americans.
A New Age, imposed by Russia and China, will begin on June 28, 2021, as gold regains its age-old function as MONEY”
I know that Salinas Price is really pro sound money, so perhaps sometimes overly optimistic, but this article was linked to by Bob Kirtley in his Gold Prices newsletter today, who is generally more cautious. Anyway, worth reading.
either way this is kinda exciting.. Considering the possible positive Basel 3 Accord changes and the historically downward month of June? Is this possibly the last time to buy at a “lower” price. The dang premiums are so high? Miners?