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, |
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| 1 | with no counterparty risk. Under Basel III rules, every central bank will be |
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| 2 | able to revalue its physical reserves higher, from a current 50% haircut into a |
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| 3 | fully cash exchangeable asset. |
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| 4 |
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| 5 | Andrew Maguire believes that central banks will be able to pay off massive |
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| 6 | swathes of debt by revaluing gold. According to the precious metals expert, |
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| 7 | gold would not only act as a cash asset, but would also behove central |
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| 8 | banks to revalue the dollar price of gold. |
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I found it through a Hot Copper poster DREDD84 on the SPQ page.
