The New CS Board

[jumanji0881]

Gold Market in Crisis, Risks Collapse: LBMA : http://www.financialsense.com/contributors/adrian-ash/gold-market-crisis-risks-collapse

My comment: Sovereign Bonds over Gold ? Good luck with that. I'll hold gold even if the banks don't. Sovereign bonds will break the banks.

Excerpt:
Known as Basel III, the banking rules set to come into force by 2018, and starting over coming months, will force large institutions to value each asset they hold at a different rate based on what the Basel Committee sees as its level of risk when measuring the stability of their balance sheets,

Deeply liquid, instantly priced and potentially a 'safe haven' asset is good, of course. Unsurprisingly, and very conveniently for debt-laden governments, sovereign bonds fit the bill precisely. Yet physical gold is ranked with the very worst junk an investor can own, and can be accounted at only 15 cents in the Dollar.

That 85% haircut, as you can guess, is a disaster for any bank holding a lot of gold, ready to lend. The cost of doing business will jump – perhaps by 300% on one estimate