Is Gold under Basel III at Risk?
Gold not require term funding! Recently Dr. Keith Weiner, CEO- Monetary Metals and the president of the Gold Standard Institute USA inks, Will Basel III Send Gold to the Moon! He said, “A number of commentators have predicted that the rules of the Basel III bank regulations will cause gold to skyrocket (no, this article is not about our view that gold does not go up, that it’s the dollar going down, that the lighthouse does not go up, it’s the sinking ship going down in the storm).” Will it? It would be easy to say as with all of their other predictions of gold to infinity and beyond, “wait and see.” But where’s the fun in that? We’d rather look into the nature of the claim, how banks operate, and what the regulation actually says so who wants to understand a bank balance sheet, and regulators’ view of bank risk? In other words, who wants to understand whether gold will skyrocket? If you picture the bank getting pinched by twin pincers, that’s right. One is that fund