Comment: Will Physical Gold Be Used As "Money" Again?

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Will Physical Gold Be Used As "Money" Again?

http://seekingalpha.com/article/1082071-basel-iii-a-game-cha...

Excerpts:"If the Basel Committee decides to grant gold a favourable liquidity profile under its proposed Basel III framework, it will open the door for gold to compete with cash and government bonds on bank balance sheets - and provide banks with an asset that actually has the chance to appreciate. Given that US Treasury bonds pay little to no yield today, if offered the choice between the "liquidity trifecta" of cash, government bonds or gold to meet Basel III liquidity requirements, why wouldn't a bank choose gold? From a purely 'opportunity cost' perspective, it makes much more sense for a bank to improve its balance sheet liquidity profile through the addition of gold than it does by holding more cash or government bonds."

China's central bank has openly called for gold to be a part of a basket of assets used to support a new super-currency. China has encouraged citizens and institutions to hold gold, and it has imported and produced large quantities gold over the last two years.....more at the link above.

beesting