GOLD PRICE WILL SKYROCKET BY 2013!
The Basel Committee for Bank Supervision (BCBS), the maker of global capital requirements and whose Basel III rules form the basis for international bank regulation, is studying making gold a bank capital Tier 1 asset by January 2013.. Gold has historically been classified as a Tier 3 asset. When determining how much money a bank can loan, the bank's gold holdings have traditionally been discounted 50 percent of the current market value. With value cut in half, banks have little incentive to hold gold as an asset. If gold is made a Tier 1 Capital asset banks could operate with far less equity capital than is normally required.