gold, page-95476

"The biggest interest in Basel 111 is how the fraudsters manage to deal with unallocated gold as a trading vehicle because if they are actually restricted to backing trades on a par basis with actual metal then its game over and especially if the ETF's are forced to back their holdings 1 for 1 then we've got some serious volatility coming because these guys are nowhere near a 1 to 1 ratio."

There is nothing in Basel 3 that addresses any of this. It is phys gold that will need to be backed by other assets.