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<p>[QUOTE=&quot;gboulton, post: 1474397, member: 27043&quot;]A risk-weighting is, essentially, the FDIC&#039;s assessment of an asset&#039;s risk...that is to say, the FDIC, in the process of insuring a bank&#039;s deposits, says &quot;You have this asset...but we estimate there is some amount of risk that that asset will lose value, so you may count it at only X%&quot;&nbsp; The &quot;X%&quot; is the risk-weighting.</p><p><br /></p><p>Currently, Gold&#039;s risk-weighting is 50%.&nbsp; That is to say, if a bank holds 100 oz of gold bullion, it may count 50 oz as an asset.</p><p><br /></p><p>This change would, essentially, make gold the same as cash from the FDIC&#039;s point of view.&nbsp; </p><p><br /></p><p>This doesn&#039;t mean &quot;the FDIC is making gold money again!!11!!oneone&quot; or any nonsense of the sort (which is already cropping up online).&nbsp; It simply means that when the FDIC evaluates a bank to INSURE ITS DEPOSITS, it will count an ounce of gold bullion as an ounce of gold bullion, not half an ounce.</p><p><br /></p><p>This proposed rule change basically simply seeks to say that the downside risk to gold is low enough that the FDIC&#039;s not going to get worked up over it. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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