The BCBS - Basel Committee on Banking Supervision, part of the the BIS - Bank of International Settlements is meeting to discuss
making gold a tier 1 asset. What does this mean to the banking world and how does it effect you?
Ross Norman CEO of Sharps Pixley comments.....
In short, they are meeting to consider making gold a Tier 1 asset for commercial banks with 100% weighting rather than a Tier 3 asset with just a 50% risk weighting as it does today. At the same time they are set to increase the amount of capital banks must set aside as well. A double win potentially.
This could easily explain why countries like China, India, Russia, Vietnam & Mexico have been gobbling up all the gold they can get their hands on for the last two years. They know gold is a financial asset.
These countries are the global financial centers of the next hundred years
and you would be stuffing your head in the sand to ignore this blatant fact. These countries know that gold is a valuable financial asset and can support their currencies as hard, tangible assets. No wealth by "fiat" here. Western countries like the US, Britain and Europe are not buying gold because they are afraid their fiat currencies will collapse, if, by buying gold, they admit that there is no "there, there" in their currencies.
What to do? What to do? Fire up the western financial press, thats what!
And once again the financial prevaricators at Bloomberg, CNBC, CNN & the rest of the moronic "we didn't see it coming" media, screaming at anyone within earshot that gold is in a bubble. The repeated drum beat of...gold has no value, you can't eat gold, gold isn't a safe haven, gold doesn't earn a dividend come blaring out of the digital, financial fog.
Gold as a Tier 1 asset in the banking system must be scaring the governments in Washington, London and Berlin.
This helps explain why you have heavy weight, insider investors like Warren Buffett & Charlie Munger disparaging gold. Why would men who gained great wealth from buying insurance companies denigrate gold?
The same arguments can be made against owning insurance.. insurance doesn't produce or build anything, you can't eat insurance... insurance is only valuable if you can make a claim and the insurer has capital. So for Buffett and Munger to malign gold and dissuade any thought that the average man on the street, should NOT consider gold as a safe haven, as financial insurance, is claptrap from disingenuous fabulists. These negative illusions regarding gold continue with comments from Ben Bernanke, FED Chairman, on his recent road show. Chairman Ben has gone so far as to appear on 60 Minutes, meet with military personnel and lecture students at George Washington University that gold has no monetary value and that considering a gold standard is monetary policy folly.
Here is his comments to Rep. Ron Paul, who is currently running for President of the USA, regarding gold as money... 38 seconds in..
Link Here.
I guess they don't get 60 Minutes in China or India or Russia or Vietnam or Mexico or or their Netflix dvd's are running late.
Do you really think that these countries and their leaders are nattering nabobs and buying HUGE sums, 1000's of tons of gold because it is pretty?
If you aren't interested in insuring your wealth with physical ownership of gold or silver, you will have missed a huge opportunity to protect your family and your future.
Please read the essay from Dave From Denver. He comments on the future of gold below.
From The Golden Truth:
Dave In Denver:
The real evidence comes from looking at what the big buyers of gold are doing. I think many of you have already seen the recent articles which report the latest Central Bank gold accumulation in primarily eastern and southern hemisphere countries. As I mentioned yesterday, China imported the equivalent of about 10% of the world gold production in 2011. In Q1 2012, China imported 50% of the amount it imported for all of 2011.
Venezuela has repatriated most of its gold (200 tonnes) that was being held outside of the country by western country Central Banks (England, U.S., Switzerland). Mexico has been recently accumulating physical gold. And Viet Nam is now known in global gold circles as "little Switzerland." In other words, it seems that every country other than the U.S., Japan and EU countries are actually aggressively accumulating physical gold (and silver).
One reason is that the B.I.S. - Bank for International Settlements, the Central Bank for all global Central Banks - is looking into reclassifying gold as a Tier 1 asset: LINK What this means in short is that it would elevate gold held by banks to the same asset class status as paper currency. In other words, "gold is cash." Currently gold is classified as Tier 3 asset, which means that any gold held by a bank gets a 50% haircut to market value in accounting for a bank's required capital reserves held against liabilities. Tier 1 status would elevate gold to 100%, same as cash. Hmmm...
Read the rest of the article here......
making gold a tier 1 asset. What does this mean to the banking world and how does it effect you?
Ross Norman CEO of Sharps Pixley comments.....
In short, they are meeting to consider making gold a Tier 1 asset for commercial banks with 100% weighting rather than a Tier 3 asset with just a 50% risk weighting as it does today. At the same time they are set to increase the amount of capital banks must set aside as well. A double win potentially.
This could easily explain why countries like China, India, Russia, Vietnam & Mexico have been gobbling up all the gold they can get their hands on for the last two years. They know gold is a financial asset.
These countries are the global financial centers of the next hundred years
and you would be stuffing your head in the sand to ignore this blatant fact. These countries know that gold is a valuable financial asset and can support their currencies as hard, tangible assets. No wealth by "fiat" here. Western countries like the US, Britain and Europe are not buying gold because they are afraid their fiat currencies will collapse, if, by buying gold, they admit that there is no "there, there" in their currencies.
What to do? What to do? Fire up the western financial press, thats what!
And once again the financial prevaricators at Bloomberg, CNBC, CNN & the rest of the moronic "we didn't see it coming" media, screaming at anyone within earshot that gold is in a bubble. The repeated drum beat of...gold has no value, you can't eat gold, gold isn't a safe haven, gold doesn't earn a dividend come blaring out of the digital, financial fog.
Gold as a Tier 1 asset in the banking system must be scaring the governments in Washington, London and Berlin.
This helps explain why you have heavy weight, insider investors like Warren Buffett & Charlie Munger disparaging gold. Why would men who gained great wealth from buying insurance companies denigrate gold?
The same arguments can be made against owning insurance.. insurance doesn't produce or build anything, you can't eat insurance... insurance is only valuable if you can make a claim and the insurer has capital. So for Buffett and Munger to malign gold and dissuade any thought that the average man on the street, should NOT consider gold as a safe haven, as financial insurance, is claptrap from disingenuous fabulists. These negative illusions regarding gold continue with comments from Ben Bernanke, FED Chairman, on his recent road show. Chairman Ben has gone so far as to appear on 60 Minutes, meet with military personnel and lecture students at George Washington University that gold has no monetary value and that considering a gold standard is monetary policy folly.
Here is his comments to Rep. Ron Paul, who is currently running for President of the USA, regarding gold as money... 38 seconds in..
Link Here.
I guess they don't get 60 Minutes in China or India or Russia or Vietnam or Mexico or or their Netflix dvd's are running late.
Do you really think that these countries and their leaders are nattering nabobs and buying HUGE sums, 1000's of tons of gold because it is pretty?
If you aren't interested in insuring your wealth with physical ownership of gold or silver, you will have missed a huge opportunity to protect your family and your future.
Please read the essay from Dave From Denver. He comments on the future of gold below.
From The Golden Truth:
Dave In Denver:
WEDNESDAY, MAY 30, 2012
Gold Isn't Just For Goldbugs Anymore...
I don't think China really cares about the Comex other than the fact that the Comex operators do a great job keeping the price of gold and silver artificially low for China as the world's largest buyer of gold and silver. - Dave in DenverAnyone who buys into the "gold is in a bubble/bear market" proclamations being tossed out on CNBC, Bloomberg and other mainstream disinformation sources needs to examine the real evidence. The real evidence does not come from some asswipe working for a big bank brokerage firm who examines pretty lines drawn on a chart or has spent the last 10 years conning the public into buying stocks like Facebook.
The real evidence comes from looking at what the big buyers of gold are doing. I think many of you have already seen the recent articles which report the latest Central Bank gold accumulation in primarily eastern and southern hemisphere countries. As I mentioned yesterday, China imported the equivalent of about 10% of the world gold production in 2011. In Q1 2012, China imported 50% of the amount it imported for all of 2011.
Venezuela has repatriated most of its gold (200 tonnes) that was being held outside of the country by western country Central Banks (England, U.S., Switzerland). Mexico has been recently accumulating physical gold. And Viet Nam is now known in global gold circles as "little Switzerland." In other words, it seems that every country other than the U.S., Japan and EU countries are actually aggressively accumulating physical gold (and silver).
One reason is that the B.I.S. - Bank for International Settlements, the Central Bank for all global Central Banks - is looking into reclassifying gold as a Tier 1 asset: LINK What this means in short is that it would elevate gold held by banks to the same asset class status as paper currency. In other words, "gold is cash." Currently gold is classified as Tier 3 asset, which means that any gold held by a bank gets a 50% haircut to market value in accounting for a bank's required capital reserves held against liabilities. Tier 1 status would elevate gold to 100%, same as cash. Hmmm...
Read the rest of the article here......
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