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I Already Told You: Gold WILL 'Officially' Become Money in 2013
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Thread: I Already Told You: Gold WILL 'Officially' Become Money in 2013

  1. #1
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    Default I Already Told You: Gold WILL 'Officially' Become Money in 2013

    See my other thread ---> http://forums.silverseek.com/showthr...219#post227219
    "World Gold & Silver Standard to Emerge in 2013 after Global Financial/Monetary Crash"

    There's been incremental signs pointing to gold being re-monetized in the near future. This one is the most solid to date.
    IMO, silver will follow in this regard but..., only after the crash of the entire, western banking/monetary system in order to justify, necessitate and facilitate that process.

    Breaking News: Regulators to Classify Gold as Zero-Risk Asset
    By John Butler06/25/2012

    "In what might be the most underreported financial story of the year, US banking regulators recently circulated a memorandum for comment, including proposed adjustments to current regulatory capital risk-weightings for various assets. For the first time, unencumbered gold bullion is to be classified as zero risk, in line with dollar cash, US Treasuries and other explicitly government-guaranteed assets. If implemented, this will be an important step in the re-monetisation of gold and, other factors equal, should be strongly supportive of the gold price, both outright and relative to that for government bonds, the primary beneficiaries of the most recent flight to safety. Stay tuned.

    Did Anyone Notice?

    In an Amphora Report last month, The Canary in the Gold Mine, I made the case that a key reason why gold has not been acting like a safe-haven asset in recent months is because banks are so capital impaired that they are scrambling to reduce their holdings of risky assets in favour of so-called ‘zero-risk-weighted’ assets, against which they needn’t set aside any regulatory capital. As it stands, gold has a 50% risk-weighting. But some government bonds, including US Treasuries, German Bunds and British gilts, are zero-risk-weighted.

    However, in the report, I speculated that perhaps that would change in future, and that:

    “…if it happens, it will be an important step toward the re-monetisation of gold. Gold would be able to compete on a
    level playing field with government bonds. While the playing field could be levelled in this way, there would be a gross mismatch on the pitch.
    On one hand, you have unbacked government bonds, issued by overindebted governments, yielding less than zero in inflation-adjusted terms.
    On the other, you have gold, the historical preserver of purchasing power par excellence.”


    Well, on 4th June the Federal Reserve, OCC (Office of the Comptroller of the Currency) and FDIC (Federal Deposit Insurance Corporation) collectively circulated a memo asking for comment on their proposed changes to the regulatory capital risk-weighting framework. Section 11, ‘Other Assets’, specifies that a “zero risk weight” is to be applied to “gold bullion held in the banking organization’s own vaults, or held in another depository institution’s vaults on an allocated basis”.

    Whoa. There you have it. As it stands now it would appear that, in the near future, banks will not have their regulatory capital ratios penalised for holding gold instead of government bonds as a safe-haven, zero-risk asset.

    While the fundamental backdrop for gold is..."
    Read more here ---> http://www.financialsense.com/contri...r&utm_term=FSO
    Last edited by Mighty Moose; 25th June 2012 at 21:48.
    All original wealth comes out of the ground.

  2. #2
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    Default

    So the regulators just now figured it out? Little slow, weren't they? Didn't everyone here already know that - a long time ago?

  3. #3
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    hahah MM its nice you brag about your prediction but you forgot the part "in 2013 after Global Financial/Monetary Crash"

    Your prediction hasn't arrived yet.

    And you should have quit posting on this forum, you have no morals at all.
    Legal Disclaimer: All posts by the person known here as tom1000000 are not to be relied upon for any reason and may be totally incorrect. All rights reserved.

  4. #4
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    Quote Originally Posted by tom1000000 View Post
    hahah MM its nice you brag about your prediction but you forgot the part "in 2013 after Global Financial/Monetary Crash"

    Your prediction hasn't arrived yet.

    And you should have quit posting on this forum, you have no morals at all.
    Who's bragging? Just tellin like it is. Sorry, I meant to say "like it will be". Is that better now, tom. Now re-read the title of the thread again.

    Your 5-year plan for PM accumulation made sense 5 years ago. You need to change that to 5 months....or less. Come this time next year, many will be priced out of the market -- of whatever remains. Ya can't buy any if ya can't find any.
    All original wealth comes out of the ground.

  5. #5
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    Quote Originally Posted by Mighty Moose View Post
    Who's bragging? Just tellin like it is. Sorry, I meant to say "like it will be". Is that better now, tom. Now re-read the title of the thread again.

    Your 5-year plan for PM accumulation made sense 5 years ago. You need to change that to 5 months....or less. Come this time next year, many will be priced out of the market -- of whatever remains. Ya can't buy any if ya can't find any.

    So, the US now judges gold to be an asset that is as safe as it's bonds. Not that I would park my money there. They are paving the way for Gold to be back where it should. Also, in the news, Turkey, Russia, Ukraine and Kazakhstan further increase their gold reserves. It only seems like yesterday that Gordon Brown (the piece of $hit) sold half the UK's insurance policy at the bottom of the market. I know what I'd like to do with him. Good post as usual from the Moose.

  6. #6
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    Quote Originally Posted by gollumthegreat View Post
    So, the US now judges gold to be an asset that is as safe as it's bonds. Not that I would park my money there. They are paving the way for Gold to be back where it should. Also, in the news, Turkey, Russia, Ukraine and Kazakhstan further increase their gold reserves. It only seems like yesterday that Gordon Brown (the piece of $hit) sold half the UK's insurance policy at the bottom of the market. I know what I'd like to do with him. Good post as usual from the Moose.
    Ah yes, good ole Gordon Brown. "Brown's Bottom" will be a phrase which will live on in eternal infamy.

    Hey look, there sill might be some left!

    All original wealth comes out of the ground.

  7. #7
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    Gold WILL 'Officially' Become Money in 2013

    According to everyone who uses Lewis Carroll as their financial advisor.

    "I have believed as many as six impossible things before breakfast." The Queen - Through the Looking Glass

  8. #8
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    Default There's clearly a trend developing and you better recognise it...

    ...and consider the implications.

    Don't worry Mr. Shelley..., I wasn't aiming at you. This is intended for those who believe in "as many as six impossible things before breakfast."

    Gold bugs eye possible support from a US capital adequacy rule change; 'May be biggest event in gold market since US dropped gold standard'
    Posted by David Chaston, June 28, 2012

    "US authorities have recently called for comment on a rule change that may impact the gold market.

    The US Treasury, Federal Reserve and the FDIC have jointly sought comment on changing some capital adequacy rules for when an institution holds gold in its own vaults or in another's vaults.

    According to the draft documents released, when gold is currently held as an asset, it is risk weighted at 15% - that is, a 15% haircut is taken on its current value for capital adequacy calculations. (See page 86 of the attached Federal Reserve document.)

    However, in this same document, they are proposing that there be no (zero) discount.

    That would then put gold on the same basis as cash. ..."
    Article continued here ---> http://www.interest.co.nz/news/59995...st-event-gold-
    All original wealth comes out of the ground.

  9. #9
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    Consider the cause. Interest rates are near zero. At higher rates Gold is a negative risk asset as it earns no interest. At zero, it is on a par with other instruments.

    All of the fantasies we keep hearing about Gold are the equivalent of the 'paper' (imaginary) trading thing that some brokerage houses tout as an avenue into profitable trading. Any idiot can make money 'paper' trading, the real world is a completely different story. All that the fantasies do is make you think you know what you are talking about until the real world sets in and you have to admit that you were wrong.

  10. #10
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    Gold reentering the monetary system


    Early in 2011, the London Bullion Market Association began to push for gold to be recognised by the Basel Committee on Banking Supervision as the ultimate high-quality liquid asset. It has been a planned approach involving the wider financial community, with the European Parliament voting unanimously to recommend that central counterparties (basically regulated settlement intermediaries for securities markets) accept gold as collateral under the European Market Infrastructure Regulation (EMIR). Lobbying by the LBMA certainly contributed to this favourable outcome. A growing acceptance of gold as collateral in regulated markets is forcing the Basel Committee to reconsider the position of gold as a banking asset, which currently has a 50% valuation haircut. It is now a racing certainty the haircut will be revised to zero, the same status as secure cash.



    This is an important development for the physical gold market, and early warning of the change was signalled by a consultation document issued by the Fed and banking regulators in the light of forthcoming Basel 3 regulations [1]. It must have stuck in the Fed’s craw to have to circulate a proposal that



    A bank holding company or savings and loan holding company may assign a risk-weighted asset amount of zero to cash owned and held in all offices of subsidiary depository institutions or in transit; and for gold bullion held in a subsidiary depository institution’s own vaults, or held in another depository institution’s vaults on an allocated basis, to the extent the gold bullion assets are offset by gold bullion liabilities.



    There can be little doubt, if history is any guide, that the US Treasury and the Fed would rather not give gold a status that rivals the dollar, but they cannot boss the Basel Committee around. Ever since President Nixon took the dollar off the gold standard, the official mantra has been that gold no longer has any monetary role. To do an about-turn and accord it the same rank as dollar-cash is therefore extremely significant. Furthermore, there is an unarguable logic in favour of not penalising banks who wish to diversify their balance sheets and collateral away from fiat currencies, some of which are becoming increasingly risky in these times of systemic stress.



    The proposal is only at the stage where comments are invited, but it is unlikely that the banks will turn this proposal down, since it represents a secure lending opportunity and the opportunity to diversify a bank’s own assets without facing a risk-weighting penalty. The proposal when implemented is certain to encourage banks to buy gold, and the bullion banks in London will hedge uncovered unallocated customer liabilities. And what is sauce for the commercial goose is also sauce for the central-bank gander: it makes no sense for the central banks to continue to marginalise gold on their own balance sheets. Instead, central banks should abandon the myth of valuing gold on their books at $42.22 and treat it as a proper monetary asset.



    What this proposal amounts to is no less than the official remonetisation of gold. And as the implications dawn upon the wider banking community we shall see increasing numbers of banks seeking gold-related lending opportunities and more and more bankers seeking to acquire it as a core balance sheet asset.


    http://www.cobdencentre.org/2012/07/...netary-system/

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