UK's Basel 3 exemption for bullion banks doesn't cover gold derivatives, Maguire says
Submitted by admin on Fri, 2021-07-16 15:50 Section: Daily Dispatches
3:45p ET Friday, July 16, 2021
Dear Friend of GATA and Gold:
London gold trader Andrew Maguire says the exemption to "Basel 3" regulations offered last week to London bullion banks by the Bank of England's Prudential Regulatory Authority will not cover the "unallocated" gold the banks hold. The exemption, Maguire says, is "short-term window dressing" that will give the London bullion banks a few more months to reduce their gold derivatives business. This, he says, will push the gold price up.
Maguire adds that more transparency is being demanded of the banks by the PRA.
Russia and China are using gold to attack U.S. dollar hegemony and encouraging smaller countries to join them, Maguire says, and the Bank for International Settlements recognizes that gold is the only weapon that can displace the dollar. He expects the United States eventually to cooperate with a revaluation of gold that diminishes the dollar's position.
Maguire's comments come in an interview given Wednesday to Shane Morand of Kinesis Money that is 27 minutes long and posted at YouTube here: https://www.youtube.com/watch?v=pCJ7QF3cZbs
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.