Regulators to Classify Gold as Zero-Risk Asset

[Merwanseth]

http://www.financialsense.com/contribut ... m_term=FSO

[SilverEye]

I don't completely understand what that article is trying to tell me.

[TwoPenniesEarned]

Right now banks are only allowed to declare the value of gold on their balance sheets at something less than 100%. It's either 25% or 50%. So they are descouraged from holding gold reserves. This might change, I guess, which I agree would be bullish for gold.

[reddirtcoins]

currently it is a tier 3 asset. (50%)
When they do this it will be a tier 1. (100%)
Look for those articles that talk about tier 1/3, they might explain more but, this is a great thing for gold. It say it is "money" again (in the banking system) if it happens.

[inflationhawk]

This story is nothing but hype. Nothing has happened. The headline reads as if the decision has already been made, but all it is a discussion about a memorandum that banks are commenting on. Maybe it happens, maybe it doesn't. If it does, it is a big deal for gold no doubt and would offer a good incentive for banks to hold gold as reserves as a replacement for cash or certain government bonds, but NOTHING has happened yet. This is very poorly written and the headline is not accurate. It is merely a proposal that has been discussed for quite some time.

[reddirtcoins]

FDIC - "Notice of Proposed Rulemaking (proposed rule)"

http://www.fdic.gov/news/news/financial ... 12027.html

Notice - A. Zero Percent Risk-Weighted Items

[inflationhawk]

Here is an article that is definitely biased toward gold, but also provides context and better describes the situation. I think this is very promising, but still a ways from actually happening.

http://www.commodityonline.com/news/bas ... 48319.html

The US still hasn't fully implemented Basel 2.5 yet, so any move to Basel 3 will take quite some time.

[inflationhawk]

By the way, reddirt, thanks for the FDIC link!

[Mossy]

Yeah, such a zero risk that it has dropped to about 75% of it's high against the dollar.