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View Diary: Gold, can we put it to rest already? (45 comments)

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  •  Very refreshing. (7+ / 0-)

    The commodity, gold, is generally a forbidden topic -- accompanied by cat calls from the peanut gallery about Glenn Beck.

    Imagine not being able to openly discuss one the most important assets in the global banking system. Here's another fact:

    The Basel Committee on Banking Supervision, which makes banking rules for 27 countries, including the U.S., is reclassifying gold from being a Tier 3 asset to being a Tier 1 asset.

    Previously, when banks held gold reserves they could only count 50% of its value as a reserve. As a Tier 3 asset, gold was classified as being so risky that 50% of its value had to be set aside in case of changes in price.

    Starting January 1, 2013, bank rules will classify gold as a risk-free asset and banks will be able to count gold toward their reserves at a 1:1 value with the dollar.

    This is a game changer for all world economies.

    That's why nations are pulling their gold out of the US and world's central banks are buying as much gold as they dare.

    Denial is a drug.

    by Pluto on Thu Mar 14, 2013 at 12:55:00 PM PDT

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