@siberiancactus guys on the TNR thread know I brought the Bisel 3 to their attention some months ago when I was surfing the net in obscure places when I found Perth mint could not supply wholesale dealers in England with silver. It rang alarm bells when I found wholesale dealers could not get supply of gold bullion either. If they did get it elsewhere the premiums were high and the effective price was much higher than the futures prices which were touted. I now I find the commentary picked up by other sites and a site I would normally deem a bit out there has come up with a more recent article by James Turk which I think has substance this time if you want to know more about Basel 3 rather than surf the net for Bank of International Settlement articles.
https://kingworldnews.com/we-are-about-to-see-the-end-of-the-paper-gold-silver-markets/I think the macro flow on effects will be profound, particularly for London and New York bullion bankers who are only a part of the BIS European scene. Emerging economies of India and China who value gold won't be as effected by the loss of paper claims which will IMO will be a gut punch to some market economies because of the leverage paper gold has had in the past and current issues confronting economic management given the problems Covid 19 and structural change coming about with climate change where quantitive easing has not been able to pull countries out of their mess. Its a perfect storm. The problems have impacted the velocity of money which determines real value for economic growth. Price stability is in tatters with over the top stimulus. We have seen huge amounts of quantitive easing since the financial crisis and current measures dwarf that raising asset values in money terms. Nothing else is driving more economic activity to increase many nation's general welfare in real terms and many countries are tied to Fed policies because they have borrowed from them. Global trade has seen $US fall to about 60% usage in trade arrangements. The free ride for the US domestic economy as a safe haven alternative to gold is shrinking. Climate change, not peak oil have hit Petro dollars hard coupled with low economic activity and Covid 19 travel restrictions inclusive of shipping. Cyber attacks have also come into the mix. The changing trend in contract is to have direct country exchange e.g. Yuan with $AU but the exchange rates are a fudge mixture of fixed, pegged and floating between countries. It seems logical countries are implementing a basket of currencies inclusive of gold to compare apples with apples because quantitive easing and lending practices were over the top in key economies. Bad managers have not been allowed to fail and I feel accountability has been lost, kicking the can down the road where it seems the can has bounced off a brick wall and can go no further in the perfect storm.
In the recent past and In a strategic sense, manipulating gold bullion was just another tool in the armory, in the eyes of many countries, and has been about maintaining a competitive edge and influence on overseas markets and not so much about the domestic market stabilzation and price control where the monetary system has been a more efficient system and control has had a direct impact on economic activity and gold's role has been perceived as a relic of the past but it is independent of trust issues that have arisen with paper money now biting us on the bum. Economic activity enables promises to be maintained and the promissory note, money, is a statement of trust and strength as Nixon claimed. A promise can not be kept if its value is eroded. Why else did Bitcoin get off the ground? The status of gold has changed again with the Basel 3 agreement, although not pegged it should rise sufficiently to reflect value in economic activity around the world to counter paper failure as a safety net to restore trust. Restore trust, and Bitcoin will disappear because it is backed by nothing as is the money printing press. Controlling prices and international trade through monetary policy of a few nations will not continue as it had. Maybe the Fed has fewer tools left but can rely on countries who in open markets can borrow from them directly to share the pain because they have been locked in, in better times. For how long that will be maintained is anybody's guess as nothing is certain in this world. India was also a BRICS country where those members were trying to establish another world banking scene. Of course a recent spat with China may not circumvent the underlying national mindset to hold gold which many Arab countries value highly too. It seems now that the BIS arrangements will settle some of the international disquiet behind the scenes and the law of large numbers has determined the outcome when it would seem strong counties have been weakened by Covid 19, climate change, structural issues and racial divide. All tough issues that have to be addressed sensibly to avoid conflict in the allocation of scarce resources for growing populations.
I think TNR management have got their eyes on the game and are very forward thinkers and understand the role of gold in the new paradigm. The role of crypto gold will be a game changer in the new paradigm. It removes the storage issue of gold being touted and allows gold to function as money i.e. as a medium of exchange, a standard of differed payment and a store of value because it is divisible. I also think the junior explorers like TNR will grow in value at a faster rate than current producers over time when gold is revalued. That's why I am in a few for the long play. Apologies for being long winded but its hard to convey key macro structural effects as I see them in short form which eventually effect the micro scene where little guys make their money. Its political and complex with so many stakeholders because wealth will be built or lost and the winner always gets to write the history.