SEEMS TIME TO GIVE UP, page-635

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Greenflint

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29/06/21

08:32

Post #: 54134262
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Originally posted by Footmax: ↑

Most people are aware of Basel III but this could be of some interest
Gold finished at US$1,780/oz, up US$15 for the week in the face of a weaker US dollar.
Gold bugs will be interested to know that as of 28 June 2021, the Basel III agreement takes effect (a set of international regulations concerning bank capital adequacy, stress testing and overall market liquidity-figure 1), whereby gold will be now considered to be an illiquid asset for central banks.
Gold must be held as a physical in the institutions own vaults. The current practice is to lease or borrow gold, a practice that will be less attractive under Basel III.
So, the net effect is that central banks will be encouraged to raise their respective physical reserves as gold attains the status of a Tier 1 asset.

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However there seems to be minimal impact on GP. It is looking like, we may have to wait a bit more i.e. until the two major gold trading exchanges like LMBA and COMEX comes under the regulation in Jan 2022.

DCN Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
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SEEMS TIME TO GIVE UP, page-635

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