Sorry for the clickbaity title, but I came across a weird news article on a German stock website. The website deraktionär claims in bold letters that a new gold standard is coming. It's supposedly backed by the Bank for International Settlements (BIS). But I couldn't find any official source on their behalf.
The Source
The derAktionär cites an article from the italian financial newspaper il sole 24 ore where they claim that the BIS plans to introduce gold as a cash equivalent. This is also supposedly the reasons why banks have been buying more gold in the last years. If it's true, they will add the new paragraph at the end of March 2019.
Implications
So, what would this mean for gold? This would raise gold to the level of treasury bonds and would make it a very stable and even more liquid asset. Central banks could hold gold instead of cash.
But alas, it's nothing more than a rumour. What do you think, are the newspaper running out of things to write about? Would there be actually any difference when they add this paragraph? And why is there no official source? It's probably just a clickbait title. Like this blog post.
It's just the Basil III agreement, that gives gold the status of a Tier 1 Asset, basically a no-risk asset class. I feel it is just another bankster trick to have people use gold as collateral, against fiat loans, when the collapse comes, they will just confiscate the gold.......Opinions?
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Thanks for pointing that out. IMO the main reason behind that move is the debasement of the world economy from the US dollar. Whether they can use that to confiscate gold, not sure, they would certainly know who owns gold if you use it as collateral. Most of the gold is privately owned as far as I know ~roughly 75%.
But it wouldn't make a lot of sense for governments to confiscate gold. Governments and central banks are still the largest single holders of gold. No other single person owns as much gold. Given an economic collapse, the government would be most interested in getting streams of revenue back. Read taxes. If gold at that point is immensely valuable, they will shoot themselves in their own foot if they confiscated it. Taking capital away from the people would result in stunted growth. Given that most governments already own massive gold reserves, I don't see why they would need more gold.
On the other hand, the government could be interested in controlling the growth in such a scenario. Then confiscation might make sense.
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I owe quite some physical gold but I cannot say it is very liquid. It takes a few days to sell at least. One would need a new goldstandard or gold backed private bank accounts to make it usuable for payments . There is a gold backed crypto...
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That's true, isn't the Perth mint planning to make a gold backed crypto? That would actually be interesting^^
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