What happened to Basle 111 ?

[Jiffy]

I was under the impression that Basle 111 would have a huge impact on the price of gold by reducing the % of non allocated/paper gold, but so far IMHO it has had zero effect. Why is that?

Many links here on the topic :

https://duckduckgo.com/?t=ffab&q=Gold+a ... 0-1&ia=web

Maybe one for Speedie to answer?

[Costa]

I could be wrong (this is not my area of research) but i think the London LBMA etc is exempt at this time.

[Hydrogen]

That's correct Costa... Gold bugs were very excited in 2021 because, in principle, the Basel 3 regulations were going to slow or even stop the paper gold market trading in its present form. However it all fell over, in the UK at least, as the LBMA clearing banks managed to wangle an exemption, at the 11th hour, because it became clear the regulations were going to severely impact their operations...

https://www.reuters.com/world/china/bri ... 021-07-09/

[speedymeadie]

Hi All. Basel111 is recommendation only and it is up to the central banks in each country to implement the recommendations. The LBMA (the largest market) has lobbied the BOE and have delayed implementation. Whilst this is not good news the physical market will render the paper market impotent but this will take some time. At the moment the COMEX is being overwhelmed with requests for physical delivery so it has began. The liquidity providers are not prepared to deliver huge amounts of physical at these low prices. ATB Speedy