The introduction of Basel III regulations on July 1st has already started a major paradigm shift in the overall global gold market. Andrew Maguire, a leading industry analyst, has explained what the regulations mean. He stresses that these regulations will speed the pace of repatriation of physical gold in return. This dramatic turn reflects an increasing demand for countries and universities alike to protect physical goods as their economic fortunes rapidly change.
Maguire underlined the new Basel III framework’s most important takeaway: Holding physical gold is more critical than ever. This adjustment effectively raises gold’s status from a risk-weighted asset to a zero risk-weighted asset. It’s clear countries are quickly trying to act ahead of further regulations by repatriating their gold reserves. This shift represents a larger trend of valuing real physical things more than paper derivatives.
Alongside these changes, China is deepening its global gold settlement network. While this program may only seem like a regional issue within Russia and Eurasia, it is a significant harbinger of a new trend in gold ownership and pricing globally. For currency traders, China is already making it easy to transact in gold. The idea behind this strategy is to lessen its dependence on Western controlled financial markets, particularly those led by the LBMA and COMEX.
China’s new gold settlement system, meanwhile, is growing by leaps and bounds. This growth increases demand from Asian countries and BRICS countries, subsequently affecting the broader market directly. Maguire explained that this heavy demand is responsible for a short squeeze that’s fueling a rising gold price. He pointed out how Western speculative activity has been little during this upswing. This limitation signals an increasingly likely new market dynamic.
In the most recent episode of “Live from the Vault,” Maguire took calls from the Bitcoiner community, directly M… He addressed urgent issues like the effects of Basel III on the COMEX and LBMA. Lawrence inquired about how these regulations might affect trading on these platforms, while Mitchell raised concerns regarding China’s new gold vault in Saudi Arabia and its potential global impact.
He was met with some pushback, to which Maguire’s rebuttal was that as the COMEX continues to lose control, physical gold more and more dictates the market price. He emphasized that the focus on physical assets over paper contracts marks a significant evolution in how gold is valued and traded.
In fact, Lawrence was vocally questioning COMEX silver trading longs. He was curious to see how far the big players could drive prices down. As conditions continue to change, the responses highlighted the non-fungibility issues currently working against precious metals.