Category Archives: Commodities, Precious Metals

Gold: A Review Of Possible Effects Of The Proposed Regulatory Changes

Recently as part of the implementation of Basel III rules, changes in the risk weight of gold bullion were proposed in the United States. According the new rule gold should have a zero weight as a risk asset in the calculation of banks regulatory capital ratios. This analysis tries to examine the possible effects that these changes could have on the demand and supply of gold and respectively – on its price.

Any comments will be appreciated.

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