Basel III and gold.

US Gold Bureau ^ | March 2 2021 | Bill stack

[delta7]

36%. That is how much the gold price has moved up since we last mentioned Basel III, in this article from April of 2019. We projected then that gold would likely move up in price steadily over time as we got closer to full implementation of these international banking accords. In actuality, the gold price has moved up an average of 1.35% per month since then, yielding more in a month than a five-year CD account pays in interest for a full year. While full implementation of the Basel III rules has been pushed back until January 1, 2022, the largest players in the gold market (USA, Switzerland, EU nations) have targeted June 28, 2021 as the date by which they plan to be in compliance. This shift in behavior implies that significant changes in the precious metals markets lie just ahead, with famed commodities trader Andrew Maguire calling for a $500 boost for gold and a $10-$12 boost for silver over the next 20 weeks.

[delta7]

Banks piling into gold. Ever wonder why? Basel III agreements are international, The “ public” or private purchases of PM’s pales in comparison to what sovereign and independent banks buy. The sad part is the general public has no idea we have already entered into an historic gold rush....a legendary investor once said the gold manipulation will continue until the public loses all trust in our government....are we there yet?

[agere_contra]

The “ public” or private purchases of PM’s pales in comparison to what sovereign and independent banks buy.

Except in India. Those guys have never forgotten what true money is.

[delta7]

Long time goldbugs remember when the Bank of England sold off 50% of its entire gold reserves by order of our Federal Reserve, to push the price down. “ Brown’s folly” is the event’s name. Today, we have sovereign nations and banks buying gold as it is a Tier One asset. Yes Johnny, gold is money, unencumbered, with no second or third party liabilities.

“ Quote from Eddie George, Governor Bank of England in 1999, when BoE dropped 400 tones of Gold, 50% of the BoE’s gold on the market:

“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.”

[delta7]

India had instated ridiculous taxes on gold, only recently lowered the taxes.

https://schiffgold.com/key-gold-news/government-policy-changes-should-boost-indian-gold-market/

[SaxxonWoods]

I don’t buy this article, though I am sitting on some paper silver, which I trade. I sold paper gold before it took it’s recent dump, which is ongoing. Pro metals sellers don’t care about price movement, they are like bookies, they make their money off the spread, no matter what the price. The silver market is too small and the price is controlled. I would never look at it other than as a trade.

The prices of two commodity funds tell the story. The indexes that follow paper silver and physical silver were within a couple of pennies of each other just days ago.

Adjusted for inflation, silver made it’s last real high about 35 years ago.

[jdsteel]

Gold in 1980:

https://futures.tradingcharts.com/historical/GD/1980/0/continuous.html

1990:

https://futures.tradingcharts.com/historical/GD/1990/0/continuous.html

2000:

https://futures.tradingcharts.com/historical/GD/2000/0/continuous.html

2010:

https://futures.tradingcharts.com/historical/GD/2010/0/continuous.html

Inflation measured by the value of a 1990 dollar compared to today ($100 then is $206.22 today):

https://www.inflationtool.com/us-dollar/1990-to-present-value

Until very recently Gold has been a spectacularly bad investment.

Worried about storing value or SHTF? Buy lead instead. The 2nd Amendment kind.

[delta7]

I don’t buy this article...
———-
You don’t have to buy the article, fact is Basel III agreements are international banking law, and that includes the US banking industry.
JP Morgan is the largest physical silver holder in the US, they have been quietly buying up physical silver for more than three years, why?

[delta7]

I bought gold at $275 oz and silver at $3.50 oz in 2000. Not paper. I am well satisfied I did. PM’s are insurance and wealth storage. A millionaire ( now billionaire ) once told me, dollars are for spending, PM’s are for storing.
If you haven’t noticed, we are in historic times.

[SaxxonWoods]

“JP Morgan is the largest physical silver holder in the US, they have been quietly buying up physical silver for more than three years, why?”

To work with a few other power players to control the price. Silver is rigged market. Adjusted for inflation it has never again reached it’s high in about 1986. The stock market is freaking out about inflation and silver is going down and it’s technicals are lousy. How can it be?

“On 03/05/2021, The technical condition of SLV is deteriorating. Overall momentum is slowing and if support levels are violated, further weakness in the stock is probable. The stock is underperforming the market when compared to the S&P 500 over the last 50 trading days. The MACD-LT, an intermediate-term trend indicator, is bearish at this time. If the stock closes below $24.10 a change in trend will be confirmed. Upside momentum, as measured by the 9-day RSI, is negative. The stock is in a short-term oversold condition based on a Slow % K stochastic reading of 20 or lower. Over the last 50 trading sessions, there has been more volume on down days than on up days indicating that SLV is under distribution, which is a bearish condition. The stock is trading below a falling 50-day moving average which confirms the deteriorating technical condition of SLV. SLV could find secondary support at its rising 200-day moving average.”

The above is why we are seeing more boosting of silver and another round of the 60 year-old fear porn stories.

[SaxxonWoods]

You could have bought silver one year ago for $10.86.

[Rockingham]

Basel III refers to international capital adequacy standards for banks, with the now phased in revisions in the third round elevating gold by treating it as a Tier 1 asset without any risk reduction in booked value. Physical gold holdings by banks get this treatment because recent experience showed that unlike most capital assets, gold has no counterparty risk and maintains or rises in value in a systemic financial crisis.

Yet gold bugs out not to feel too smug. The day will come within a few decades when gold prices falter and its future as an asset comes into question because asteroid and undersea mining make for a relative abundance of the gold stuff and other now rare metals. Will the hard money crowd then insist that such new sources of gold be regulated and controlled so as to protect gold as a Tier 1 capital asset?

[rb22982]

There was only a handful of days silver traded below $13 and there was no physical below $15.

[SaxxonWoods]

. “Will the hard money crowd then insist that such new sources of gold be regulated and controlled so as to protect gold as a Tier 1 capital asset?”

Gold and silver are already controlled. Big banks and hedge funds own enough to move the price up and down, and they do. Mining can expanded if a lower price is desired, as is done with diamonds.

The money is made off the little guys paying the spread to buy and sell. When you start seeing a rush of fear-porn stories you know the big boys have a shortage of buyers.

[SaxxonWoods]

“There was only a handful of days silver traded below $13 and there was no physical below $15.”

When will physical silver again reach it’s high adjusted for inflation, which it hit in about 1986? It’s been a long wait.

[bert]

Perhaps you should think about purchasing gold still in the ground.

Consider a gold stocks mutual fund. The shares track the real price and do not require storage or insurance charges

[SaxxonWoods]

Thanks, I’m retired, and gold and silver are just for fun for me. I was just talking to a retired friend yesterday. Between us we know a lot of millionaires and multimillionaires. We know guys who made fortunes in garbage, boat dealers, auto dealers, tractor dealers, rental dealers, farmers, HVAC guys, plumbers who had over a hundred trucks out with plumbers working for them. We know (and were) real estate developers, we know excavators and pavers who made it big, wildcat oil and gas people who made it big, bankers, guys that only produced materials like screws and rivets under federal contracts. We know musicians who got rich, and say they got richer investing in real estate than they did in music.

We were talking about the latest round of fear-porn and we know millionaires with safes in their basements full of gold and silver.

But neither one of us could name a single person who retired off of gold or silver. I’m sure plenty of gold/silver dealers have done well though.

Ask around for yourself, ask wealthy retired people how they did it. They are the best source of wealth ideas you’ll ever find. Most wealthy people love to talk about how they did it and how they continue to do it in retirement.

[DesertRhino]

You “buy lead” guys always seem to pick 1980 as the example of the historic price of gold. Every wonder why?
1980 was the height of the Iran crisis. Spring of 1980 was the failed Desert One rescue attempt. Gold shot up in value in 1980 so the gold trash talkers love to pick 1980.

Look at 1979, it’s half the price of 1980. Look at 1981, coming back down, and by ‘82 it’s all the way back down to the 1970 level.

1980 was a crisis level aberration and not representative of the 5 to 10 years before OR after. The fact is, except basically for that one year of 1980, anyone who bought gold say a decade before or after that date would have preserved wealth.

Yes, it would have been better to ride the stock market, but the standard advice about having 10% in gold is smart. It preserves wealth. And this is why every giant bank and governments all across earth are buying all they can find right now.

When there is a crash, and yes it’s coming, gold and land gives you the ability to rebuild your life when the new system stands up.

[DesertRhino]

Chinese are known for being exceedingly stupid and gullible. This must be why they are hoarding all they can find. And Germans aren’t bright either, that is why they repatriated their gold from the New York fed. Gold is worthless, that is also why the Fed fought them tooth and nail and dragged their feet.
Every central bank on earth is buying gold too...why?

[DesertRhino]

Investing in gold is not for “getting wealthy”. It is a safe store of value against a bad future. That is why the rich guy has it in the safe in the basement (there are better ways to safeguard against someone with a powerdrill aimed at your knee who politely asks for the combo)

The rich guy has that gold, some bitcoin, and some land.

A small guy with no debt needs to get some land first, and then some gold as a post crash life rebuilder. But no, gold investing isn’t how to get rich, or how to live DURING a collapse.

It’s for when your nation’s currency goes Zimbabwe, Venezuela, or Argentina. You have your land and supplies to survive, and then hopefully when a new day dawns, you have preserved some wealth in a way not possible for your national currency in a bank account to have done.

[jdsteel]

“ The fact is, except basically for that one year of 1980, anyone who bought gold say a decade before or after that date would have preserved wealth.”

The fact is, except basically for that one year of 1980, anyone who bought gold say a decade before or after that date would have still seen their investment languish. For decades.

There. Fixed it.