by Craig Hemke
TF Metals Report
We all felt sucker-punched two weeks ago when the Prudential Regulation Authority of The Bank of England seemed to throw a lifeline to the LBMA and possibly exempt the Gold Pricing Cartel from the capital requirements of Basel III. However, after some digging and thought, our friend Alasdair Macleod is here today to explain how and why this is not the case and that the Basel III rules likely still foreshadow a move toward a London market that is more physically-backed and less reliant upon the fun-and-games of unallocated and derivative gold.
First of all, Alasdair wrote a great summary last week on this issue. If you’ve not yet read it, you should do so now: https://www.goldmoney.com/research/goldmoney-insights/lbma-gets-a-lifeline
In my notes, I grabbed screenshots of the relevant sections. See below: