Wednesday, August 29, 2012
Hey, look, we have a new design!
We're exited to bring you a fresh design, along with some great new features. so go ahead and check it out.
Monday, August 27, 2012
GOLD JUST BECAME MONEY AGAIN
In the Federal Reserve and FDIC circulated a letter to banks that proposes to harmonize US regulatory capital rules with Basel III. BASEL III is an accord that tells a bank how much capital it must hold to safeguard its solvency and overall economic stability.
It´s a global standard on bank capital adequacy, stress testing, and market liquidity risk. Here´s the important bit:
At the top of the proposed changes is the new list of "zero-percent risk weighted items," which now includes "gold bullion" right after "cash."
That´s the part to take notice of. If the proposals are approved by regulators - and that seems likely since adoption of Basel III will be - then this is a momentous change for the gold market. Now banks will be allowed to hold bullion in their vaults and count it among their Tier 1 assets - in other words, the least risky assets.
That by itself would be bullish for the gold price, as banks that recognize gold´s unique characteristics seek to stockpile more of it.
It´s a global standard on bank capital adequacy, stress testing, and market liquidity risk. Here´s the important bit:
At the top of the proposed changes is the new list of "zero-percent risk weighted items," which now includes "gold bullion" right after "cash."
That´s the part to take notice of. If the proposals are approved by regulators - and that seems likely since adoption of Basel III will be - then this is a momentous change for the gold market. Now banks will be allowed to hold bullion in their vaults and count it among their Tier 1 assets - in other words, the least risky assets.
That by itself would be bullish for the gold price, as banks that recognize gold´s unique characteristics seek to stockpile more of it.
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