Gold Re-Monetization Is Much Closer Than Many Realize
By GCRU Gold News on Thursday, November 15 2018, 00:26 - Permalink
Under Basel III, monetary gold now qualifies as a Tier 1 asset, and is 100% valued for the purposes of banking viability.
Gold derivatives are not monetary gold, and cannot serve the role prescribed by the Basel III framework.
Central banks and large institutions will increasingly turn to monetary gold in the coming months and years (as we’ve seen post-2008). They will seek to add the quality that only monetary gold provides.
Capital flows into monetary gold will reflect the need for an asset that is liquid, tested and trusted. Gold’s re-monetization is now officially a matter of global monetary policy.