have a look at this,
WHAT DOES BASEL 111 MEAN FOR BANKS' GOLD RESERVES ?
Currently, paper gold is not a 1st tier asset. Only fully allocated physical
bullion that has no counterparty risk attached that qualifies as a first-tier
asset. As we mentioned earlier, Basel III rules coming into effect in March
through to January 22 will eliminate any valuation haircut.
The new rules will require a provable 1:1 ratio of fully allocated gold reserves, 1 with no counterparty risk. Under Basel III rules, every central bank will be 2 able to revalue its physical reserves higher, from a current 50% haircut into a 3 fully cash exchangeable asset. 4 5 Andrew Maguire believes that central banks will be able to pay off massive 6 swathes of debt by revaluing gold. According to the precious metals expert, 7 gold would not only act as a cash asset, but would also behove central 8 banks to revalue the dollar price of gold.
I found it through a Hot Copper poster DREDD84 on the SPQ page.
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