"We Track the Financial Collapse For You, so You'll Thrive and Profit, In Spite of It... "

Fortunes will soon be made (and saved). Subscribe for free now. Get our vital, dispatches on gold, silver and sound-money delivered to your email inbox daily.

This field is for validation purposes and should be left unchanged.

Safeguard your financial future. Get our crucial, daily updates.

"We Track the Financial Collapse For You,
so You'll Thrive and Profit, In Spite of It... "

Fortunes will soon be made (and saved). Subscribe for free now. Get our vital, dispatches on gold, silver and sound-money delivered to your email inbox daily.

This field is for validation purposes and should be left unchanged.

Jay Taylor: Under “Basel III” Rules, Gold Becomes Money!

In his latest newsletter commodities analyst Jay Taylor notes that a very important date is approaching:

In 2018, central banks added nearly 23 million ounces of gold, up 74% from 2017. This is the highest annual purchase rate increase since 1971, and the second-highest rate in history. Russia was the biggest buyer. And not surprisingly, the lion’s share of gold is flowing into central banks of countries that are in the sights of America’s killing machine—the Military Industrial Complex that Eisenhower warned us about in 1958.

central bank gold buying

The Bank for International Settlements (BIS), located in Basal, Switzerland, is often referred to as the central bankers’ bank. Related to this issue of central bank hoarding of gold is the fact that on March 29 the BIS will permit central banks to count the physical gold it holds (marked to market) as a reserve asset just the same as it allows cash and sovereign debt instruments to be counted.

There has been a long-term view that China and other nations dishoarding dollars in favor of gold have been quite happy about western banks trashing the gold price through the synthetic paper markets. But one has to wonder if that might not change, once physical gold is marked to market for the sake of enlarging bank balance sheets.

This also raises the question with regard to how much gold the U.S. actually holds as opposed to what it claims to hold. James Sinclair has always argued that the only way the world can overcome the debt that is strangling the global economy is to remonetize gold on the balance sheets of central banks at a price in many thousands of dollars higher. This would mean a major change in the global monetary system away from the dollar, as China has been pushing for the last decade or so.

If banks own and possess gold bullion, they can use that asset as equity and thus this will enable them to print more money. It may be no coincidence that as March 29th has been approaching banks around the world have been buying huge amounts of physical gold and taking delivery. For the first time in 50 years, central banks bought over 640 tons of gold bars last year, almost twice as much as in 2017 and the highest level raised since 1971, when President Nixon closed the gold window and forced the world onto a floating rate currency system.

But as Chris Powell of GATA noted, that in itself is not news. The move toward making gold equal to cash and bonds was anticipated several years ago. However, what is news is the realization by a major Italian Newspaper, II Sole/24 Ore, that “synthetic gold,” or “paper gold,” has been used to suppress the price of gold, thus enabling countries and their central banks to continue to buy gold and build up their reserves at lower and lower prices as massive amounts of artificially-created “synthetic gold” triggers layer upon layer of artificially lower priced gold as unaware private investors panic out of their positions.

The paper concludes that,

“In recent years, but especially in 2018, a jump in the price of gold would have been the normal order of things. On the contrary, gold closed last year with a 7-percent downturn and a negative financial return. How do you explain this? While the central banks raided “real” gold bars behind the scenes, they pushed and coordinated the offer of hundreds of tons of “synthetic gold” on the London and New York exchanges, where 90 percent of the trading of metals takes place. The excess supply of gold derivatives obviously served to knock down the price of gold, forcing investors to liquidate positions to limit large losses accumulated on futures. Thus, the more gold futures prices fell, the more investors sold “synthetic gold,” triggering bearish spirals exploited by central banks to buy physical gold at ever-lower prices”.

The only way governments can manage the levels of debt that threaten the financial survival of the Western world is to inflate (debase) their currencies. The ability to count gold as a reserve from which banks can create monetary inflation is not only to allow gold to become a reserve on the balance sheet of banks but to have a much, much higher, gold price to build up equity in line with the massive debt in the system.


Emigrate While You Still Can

8 thoughts on "Jay Taylor: Under “Basel III” Rules, Gold Becomes Money!"

  1. Virtually EVERY article about Gold for the past dozen years or so is pure propaganda being spread around to attempt to gain customers. And it doesn’t work. The public has fortunately caught on to the scams surrounding gold sellers and the tactics that they use. Virtually nobody needs it. It’s hard to get rid of. And must be converted into cash to spend. At current prices. It’s only a store of value for COUNTRIES, but not individuals (in reality). Gold will never be money again – not when fractional reserve banking is so profitable. Banks “print” money through fractional reserve banking whenever they want – they do not need gold in their vaults (or anywhere else in the world) to do this. This article is just garbage (they all are).

    1. I think your thinking too myopically. Sure physical gold is “impractical” as money when things are basically okay (still) but the purpose of owning physical gold is for when things – or at least the monetary system – break down.

      Furthermore, gold doesn’t have to be used as a transactional currency, say, to buy things. Instead it can be used as collateral. Nobody in Venezuela who has PHYSICAL gold is regretful. In a high inflationary environment one can borrow boatloads of paper currency using gold as collateral, then buy hard assets with it, and then sell them and pay the loan back with devalued currency even just months later, having both a lot of paper currency remaining AND the gold still intact. But without the gold collateral you couldn’t get the loan.

      As far as the current fractional reserve system is concerned, yes you’re basically right but remember it’s a FRACTIONAL reserve system, meaning that a fraction of all loaned/printed money must be backed by something tangible. Allowing gold to be counted as a bank asset – marked to market no less – means that their reserves will increase allowing them to loan/print more paper currency. If the value of gold owned by banks is now counted at only, say, $42 per ounce because of previous rules, after March 29 it possibly may (and probably will) be “revalued” at $1300 per ounce thus effectively increasing their reserves by a factor of roughly 30. If that isn’t going to happen then why would the central banks bother with the change of rules? Why would central banks have bought – and are still be buying – gold at prices well over $1000 per ounce if it’s worth only $42 on their balance sheets. And why did the CBs of the world buy more gold in 2018 than at any time since 1971? My answer is that they intend to increase their reserve assets by revaluing the price of gold on their balance sheets, so the more gold they have the better.

      Now, for you and me the effect would be that gold would move from being the “useless relic” that it is currently claimed to be to an OFFICIAL monetary metal valued even by banks. That’s a game changer because it will have same the effect as what happened in the late 60’s when the global market for gold (in dollars) exceeded the EXCHANGE rate of dollars for gold that existed at every US bank, including the US Federal Reserve Bank (“the gold window.”) Because the Fed/US gov. was “printing” (borrowing) so many dollars by selling Treasury bonds that exceeded – or at least threatened to – its GOLD reserve requirements, the “value” of 1 oz of gold was believed globally to be worth more than $42 US dollars, and so countries began to demand gold (instead of dollars) as interest payments on their “foreign exchange” US Treasury bond holdings. That dropped the gold reserves in the US from about 25,000 tons to about 8,000 (that the Fed still claims “we” have today), which is why Nixon closed “the gold window” and would no longer send gold instead of dollars.

      Now, that did a couple of things. Firstly, it officially made gold a NON-monetary metal because only dollars were then considered “legal tender” – legally mandated to be acceptable as payment (fiat.) Secondly, the US dollar price of gold – according to the Fed – was not changed so any gold one had could only “buy” dollars at the old exchange rate of $42 per ounce. That effectively suppressed the price of gold globally, and still does.

      Therefore, if the gold holdings as of March 29 become official assets (which they already are but only at the price of $42/oz) then the next step will be to revalue them at the market price of, say, $1300 per oz. But if that happens the reverse of what happened when Nixon removed the dollar from the gold standard would occur – the demand for gold would increase because “everyone” would want gold instead of paper. Clearly that would mean the banks would consider gold more valuable than paper currency because the purpose of it all would be to “print” even more paper currency – about 30 times as much, in fact. You may think “everyone” means only central banks but I don’t agree. I think individuals will too. Gold would then “appreciate” in price and at the very least maintain its purchasing power.

      1. The latest analysis shows that approximately 75% people are involved into internet tasks. Online world is now bigger and more beneficial and delivering plenty of opportunities. Working from home online tasks are becoming poplar and transforming people’s everyday lives. Why exactly it is actually in demand? This is because it lets you work from anywhere and anytime. You are able to get much more time to spend with people you care about and can plan out journeys for vacations. Men and women are making pleasant revenue of $34000 per week by utilizing the effective and intelligent techniques. Carrying out right work in a right direction will always lead us in the direction of success. You can begin to earn from the 1st day once you have a look at our web site. >>>>> REGISTER

      2. A holiday to the most wonderful destinations in the entire world with all your family members and a beautiful house you would like to buy. Is your existing job really capable of fulfilling your goals? If your answer is no then it is actually time for you to change. We bring to you an online job which is basically as simple as being on any search engine like google or doing copy paste job. It really does not require any technical knowledge and it does not require anything to sell. It surely is not similar to any internet scams that promises to make you “rich over night” and then ended up being pyramid schemes or stuff where you really should sell to your friends and family. You can easily start and you will get the instruction guide within few weeks. You could make almost $10,000-$20,000 a month. You are able to invest much more time with my wife and children and can go out for remarkable trips. This job gives you opportunity to be own own boss and can work from anywhere in the world. Do not wait for too long, Go and try it out this amazing online job opportunity.>>>>>>>>>>>> TAKE A LOOK AT

      3. Earn /per month Up to $5012 by working for PerkinElmer from comfort of home. There are lots of advantages of working online in your house for instance you can be your own boss. There is absolutely no one telling you what to do,get your laptop computer with connection to the internet, take it to sea beach or a park or mountain, and complete your work in peace with nature, earning potential is boundless all depending on you. You can actually achieve all yourdreams by working online ,which has restrictions when you work 9 to 5 in a office job. You wish to spend more time with your family members ,or even go out on a familyvacation? On job you need to seek out permission from your employer. Online earning, just take your laptop with you on your family tour.You enjoy the luxury to be financially FREE. Here’s the ultimate way to start ==> https://c2d.in/jUPmY

  2. I was talking to a (best) friend recently and we sorta concluded that things are going to go socialist/money-printing soon for a myriad of political and fiscal reasons (and that means the stock market and PMs is still the place to be since it’s – politically – a proxy for the economy writ large, regardless of “fundamentals”.)

    Take advantage of the CB manipulations. We, or at least I, missed the free-for-all in government bonds , but don’t be stupid again despite the grotesqueness of it.

    Although this time mat be different (NOT) in that crypto currencies will “save the day,”
    Like networks. etc. will still exist when the SHTF? (NOT!) Just what does “SHTF” mean to you? Will America/USA prevail or is it brought down?

    What goes around comes around. History is cyclical. For all of you “trekkies” out there who think “relics” like gold will be passe I say that even “the Federation” respects it, or something like it.

    1. Excellent observations, Bruce thanks. To answer your question on what happens when the SHTF, Dr Tim Morgan has a very good book on the question written in 2013 but very prescient:



      And you might have seen this anyway:

      I agree with you and your friend that gold is the place to be. The governments and elite will fight tooth and nail to keep the status quo – to no effect. MMT here we come – USA will go on printing until the dollar collapses, then SDRs come to the rescue with the IMF global currency – for a while that is.

      I have written a book about all this and more: Free pdf on request to

      1. The latest study shows that more than 75% men and women are engrossed into online tasks. Internet arena is becoming bigger and even better and giving a great number of money making opportunities. Working from home on line jobs are trending and developing people’s day-to-day lives. The key reason why it is really widely used? Simply because it allows you to do the job from anywhere and any time. You receive much more time to allocate with people you care about and can plan out journeys for getaways. Men and women are making pleasant earnings of $38000 each week by utilizing the efficient and intelligent ways. Performing right work in a right direction will always lead us towards becoming successful. You will start to earn from the 1st day when you check out our website. TAKE A TOUR >>>>> http://sonc.xyz/ba

Leave a Reply

Your email address will not be published. Required fields are marked *

Zero Fees Gold IRA

Contact Us

Send Us Your Video Links

Send us a message.
We value your feedback,
questions and advice.

Cut through the clutter and mainstream media noise. Get free, concise dispatches on vital news, videos and opinions. Delivered to Your email inbox daily. You’ll never miss a critical story, guaranteed.

This field is for validation purposes and should be left unchanged.