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$1,391.7 gold futures

In other words, LVR’s are dropping from 95% to 15%....ouch. It...

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sergeant

6,134 Posts.

443

03/03/21

20:56

Post #: 51497095
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Originally posted by sergeant ↑

But that’s the difference between paper gold and actual gold...supply of the former is infinite whilst real gold supply is finite. I actually think this is something to do with the Basel III rule change later this year. If you want to retain gold as a tier 1 asset it needs to be 85% backed by cash...paper gold only requires 5% max

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In other words, LVR’s are dropping from 95% to 15%....ouch. It could also be the reason why gold has sold down in the last few months as banks clear out their paper contracts, not want to be holding as paper gold liquidity evaporates

Last edited by sergeant: 03/03/21
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