Did Gold Just Become Money in the Eyes of the Fed? (Again)

In this very interesting article at LewRockwell.com Doug Honig explains that gold may soon resume its proper place as money in the American banking system. Banks will soon (it appears) be able to hold gold reserves. This has all sorts of interesting implications, not the least of which is potential upward pressure on the price of the “barbarous relic.”

(From LewRockwell.com)

“Here’s the important bit:

At the top of the proposed changes is the new list of “zero-percent risk weighted items,” which now includes “gold bullion,” right after “cash.”

That’s the part to take notice of.

If the proposals are approved by regulators – and that seems likely since adoption of Basel III will be – then this is a momentous change for the gold market.”

Click here for the article.