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Gold is considered a Tier 1 safe investment under Basel III which banks can use to meet the capital ratio requirement. Under Basel III, physical gold is conside
by dataviz1000 4y ago
Gold is considered a Tier 1 safe investment under Basel III which banks can use to meet the capital ratio requirement. Under Basel III, physical gold is considered the same as cash. [0] Either solid or melted gold will work meeting the capital requirements.
[0] https://www.marketwatch.com/story/why-basel-iii-regulations-are-poised-to-shake-up-the-gold-market-11624561325 https://www.marketwatch.com/story/why-basel-iii-regulations-...
- prottog 4y agoI learned something new today! And I suppose that makes sense. Gold has been a medium of exchange for millennia, so the convertibility or not (in my discussion of liquidity) of gold to USD isn't as important as it might be for other commodities. It's good to see that Basel III treats paper gold (gold futures or shares in gold-holding ETFs) as more risky than actual gold-in-hand.