On the central financial institution degree, gold stays cash except we discover a broad industrial use for it…
Vince Lanci on Palisades Gold Radio
Tom welcomes Vincent Lanci again to the present. Vincent discusses the place of J.P. Mogan and Citibank, who maintain a big gold by-product place. They’ve modified their stability sheet accounting methodology on account of Basel III guidelines. Banks are going to reap the benefits of totally different nations rules to arbitrage. The banks are in the identical situation they we’re in beforehand. The gold supplier market has grow to be smaller, and regulators appear pleased to herd these derivatives into one massive bucket. Smaller banks have exited out of the market.
Gold is a ineffective merchandise, which is why it’s an awesome retailer of worth. Cash, together with fiat, has no actual sensible objective. On the central financial institution degree, gold stays cash except we discover a broad industrial use for it.
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