Change to gold risk weighting proposed by FDIC

Gold's risk weighting will go to zero.............ie those that have it will want price high, as it will balance off other, less attractive assets,...............some other zero risk assets are........CASH, US PAPER FROM 30 BILLS ALL THE WAY TO 30 DAY BONDS

.................remember the term "good as gold" it was from old factual info...................it will be factual info again...........the legislation is done...............the US has put it out to the press

Interesdting the day it was announced a week or two ago gold was the only thing down on the day

many other countries, IE Europe have fairly decent statshes of GOLD if the US does it they will follow

As for the implications....................Its kind of like going on a Gold standard without going on one

I would not want to be shorting or betting against the PM's in times like these especially as this is a very rare and unusualy govt move by the US

In terms of price I would think up substantially

I do not believe u will be buying in the 1520's anymore nor silver in the 26's

hopes this helps

QS

 

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Yet common sense dictates that this would all but end gold's 0% risk weighting. The more volatile a commodity, the more risk is associated with it. The higher the value, the greater the risk of loss. For one, the FDIC has no baring on commodity pricing or influence on inflation or wealth preservation. If this does anything for gold, I think it will stabalize it, not inflate it.
Guy