Gold and Basel III Endgame.
The core issue facing gold under Basel III is its inconsistent classification under High Quality Liquid Asset (HQLA) regulation, which is in stark contrast to Central Bank's own beliefs and actions.
In recent weeks, there has been much discussion on-line about gold becoming a Tier 1 High Quality Liquid Asset (HQLA) under the Basel III banking regulations to be implemented in the US commencing 1st of July. These discussions appear to be blurring the lines between capital and liquidity regulation.
