Italian paper claims 29/3: introduction of gold standard

[silenceissilver]

Unfortunately, I didn't find anything about this in English, thus I must use google translate, see linke below.

I read a German article, based on the Italian one. The paper, ilsole24ore, is a widely read economic paper in Italy, according to Wikipedia.

I came across this article on social media, via an economic journalist who seems to think it's principally valid but commented, that date is coffee cup reading.

Any Italian speakers, here? Any thought by everyone else? For details, see the link.

https://translate.googleusercontent.com/translate_c?depth=1&rurl=translate.google.co.uk&sl=auto&sp=nmt4&tl=en&u=https://www.ilsole24ore.com/art/finanza-e-mercati/2019-02-24/banche-ritorno-gold-standard-l-oro-bilanci-diventa-moneta-091055.shtml%3Fuuid%3DABCGxiXB%26refresh_ce%3D1&xid=17259,15700002,15700021,15700186,15700190,15700248,15700253&usg=ALkJrhiAV4vzx77_Wq5aEE5wYYL-eSo-RA

[kneehow2018]

I understood (which doesn't mean a lot) that Gold was to be accepted by the CBs as currency in April in any case

[Martlet]

I read that as gold will be used to back bank debt, to shore up their balance sheets with gold instead of bonds or cash (which they need to be lending out). 

[kneehow2018]

Yes - I may very well have been misinterpreting A.Maguire

[Kookaburracollector]

I’m pretty sure that gold is now (or soon to be) regarded as a Tier one asset, and not a tier 3 asset under Basel 3 rules.This means gold can be counted as a physical asset the same as a Treasury Bond. As a tier 3 asset it was counted, but only weighted at 50%...dont quote me on this as not in my comfort zone..

Not a bad idea for the Italians (and the French) as they both hold huge reserves in gold...but at the current price of gold, I’m not sure it would help their precarious financial positions! 

[mr1030]

Correct @Kookaburracollector.  Makes gold more attractive for all banks as a reserve asset then it was before.

[Kookaburracollector]

It looks like Romania might soon be asking the Bank of England to hand over their 61 tons of the yellow metal (repatriation getting more popular)..best of luck with that one..it’s looking like a game of musical chairs.. and I wouldn’t want to be going last when the music stops!