In a video this week, one YouTube gold analyst contended that gold is not a “Tier 1 asset” in the banking system. This statement sent some shockwaves through the gold community. While the point is correct technically, it ignores the fact that there are no Tier 1 assets because this term is not formally used in the BIS world.
This doesn’t change the plans that the bank have for gold in the financial system. We explain why in detail in this video. Gold is as good as cash, when in allocated form, according to BIS regulations. That is all that matters. We also show you the role gold plays in the overall liquidity ratios that Basel III is imposing on the global banking system.