Basel III: Gold to be considered for Tier 1 status

pmbug

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If the rules do stress the banks' gold trading desks, I expect we should start seeing fallout in July/August from a few Euro banks and around Jan/Feb for the UK banks. Will operational trading desks absorb the short positions of their exiting peers? Will the markets carry on until it can't? Or will we see some graduated lifts as paper shorts are liquidated?

I'm guessing we don't see much until 2022.
 

pmbug

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I've been thinking about this issue a lot. I'm inclined to disagree with Hugo on this point. The Basel 3 rules regarding gold weren't developed in response to any machinations within the last year. They were developed nearly a decade ago. The implementation deadline is just finally approaching.

I think back to how the world made accomodations for China to join the G20 and such. Rickards said years ago that central banks were keeping gold cheap to allow China to buy enough to have a proper gold-GDP ratio on par with USA/Europe. He wrote years ago that gold would likely be part of the NWO one way or another (planned or unplanned).

I suspect that this was all planned out years ago. It just didn't occur to any pundits *how* the plan would work even though this thread is a testament to the evidence being right in our face the whole time.

And by 'this', I mean free gold and a NWO monetary system.
 

rblong2us

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Yes its been under discussion for as long as I have been following the metals.
And with regards to Freegold, when his site was free and fully accessible, I used to follow FOFOA closely.
There were / are some bright individuals in the speakeasy and the legacy of Another / Friend of Another, is still a place to go if you want to get a deeper understanding of how the money system really works.
I just found a recent interview of FOFOA and am working through it -

 

pmbug

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Andrew McGuire talks Basel 3 starting at around the 3 minute mark:

 

pmbug

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Craig Hemke at Sprott Money posted a bit that includes a link indicating that US banks will also abide the Basel 3 NSFR rule for gold:


It looks like the COMEX banks might be closing out their shorts in anticipation of the rule change.
 

pmbug

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I think he makes some good points. Having less liquidity / lower volume in the markets doesn't in and of itself predicate a rising or falling price. There will likely be stronger volatility as the momentum pendulum swings though. If physical stores (gold especially) really are as tight as is being reported though,. a less liquid market is likely to reflect that with rising prices. We'll see.
 

pmbug

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I got a good laugh out of the UBS quote at the end. Typo by Reuters or Freudian slip by UBS rep... Who knows. But the "gold cleaning" shall continue.
 

pmbug

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Reviewing this conversation from a few months ago. Nothing much has changed with the gold price that I noticed. Its seems to be range bound around ~1800 give or take $50. Volatility isn't really any different from before.

I did see some reports* that implementation of Basel 3 has been delayed a year due to Covid, so that might be a factor.

* Like this one:
...
The rules have already been delayed a year to January 2023 due to COVID.
...
 
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