{"id":15474,"date":"2025-09-10T06:36:02","date_gmt":"2025-09-10T06:36:02","guid":{"rendered":"https:\/\/lotayamedia.xyz\/?p=15474"},"modified":"2025-09-10T06:36:02","modified_gmt":"2025-09-10T06:36:02","slug":"is-basel-iii-paving-the-way-for-a-gold-backed-monetary-system","status":"publish","type":"post","link":"https:\/\/lotayamedia.xyz\/?p=15474","title":{"rendered":"Is Basel III Paving the Way for a Gold-Backed Monetary System?"},"content":{"rendered":"

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Trump\u2019s Trade Wars and Economic Uncertainty Drive Gold Demand
\nFormer President Donald Trump\u2019s aggressive trade policies\u2014marked by tariffs, trade wars, and strained international alliances\u2014have injected volatility into global markets. Economists warn that these measures could trigger inflation, stifle economic growth, and push the U.S. toward recession.<\/p>\n

Stock markets have reacted sharply, with the S&P 500 down 10% YTD, the Dow falling 6.4%, and the Nasdaq plunging 15.4%. Investors, seeking stability, are turning to gold as a safe-haven asset, driving its price higher amid a weakening U.S. dollar.<\/p>\n

Why Gold is Thriving in the Current Economy
\nSafe-Haven Demand: Investors are fleeing stocks and bonds for hard assets like gold.<\/p>\n

Central Bank Buying Spree: In 2024, central banks added 1,045 tonnes of gold to reserves\u2014the 15th consecutive year of net purchases.<\/p>\n

De-Dollarization Fears: Emerging economies, wary of U.S. sanctions (as seen with Russia), are stockpiling gold to diversify reserves.<\/p>\n

China, Poland, India, and Turkey led the surge, with the People\u2019s Bank of China (PBoC) holding 2,280 tonnes\u20145% of its total reserves.<\/p>\n

Basel III: The Hidden Catalyst for a Gold-Backed Financial System?
\nWhile geopolitical tensions fuel gold\u2019s rise, a little-known banking regulation\u2014Basel III\u2014could be setting the stage for a gold-backed monetary system.<\/p>\n

What is Basel III?
\nFollowing the 2008 financial crisis, the Basel Committee on Banking Supervision (BCBS) introduced stricter capital requirements to prevent future collapses. Under Basel I and II, gold was classified as a Tier 3 asset, meaning banks had to discount its value by 50%, reducing its appeal.<\/p>\n

But in **2019, Basel III reclassified physical gold as a Tier 1 asset\u2014the same as cash and sovereign bonds. This change:<\/p>\n

Eliminates risk-weighting for allocated gold (physical holdings).<\/p>\n

Treats unallocated gold (paper gold like ETFs) as Tier 3, discouraging speculative positions.<\/p>\n

Forces banks to increase Tier 1 capital from 4% to 6% of assets, incentivizing gold ownership.<\/p>\n

Implications for the Global Monetary System
\nBanks Now Prefer Physical Gold \u2013 With zero risk weighting, gold becomes a core reserve asset.<\/p>\n

Accelerating De-Dollarization \u2013 As trust in fiat currencies wanes, gold\u2019s role in global finance grows.<\/p>\n

Potential Gold Standard Revival \u2013 Could Basel III be the first step toward a new gold-backed system?<\/p>\n

Will Gold Prices Keep Rising?
\nWith Trump\u2019s trade policies fueling uncertainty, central banks hoarding gold, and Basel III reshaping bank reserves, the precious metal\u2019s bull run may just be beginning.<\/p>\n","protected":false},"excerpt":{"rendered":"

Trump\u2019s Trade Wars and Economic Uncertainty Drive Gold Demand Former President Donald Trump\u2019s aggressive trade policies\u2014marked by tariffs, trade wars, …<\/p>\n","protected":false},"author":1,"featured_media":15472,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","rank_math_keywords":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-15474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/15474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15474"}],"version-history":[{"count":1,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/15474\/revisions"}],"predecessor-version":[{"id":15475,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/15474\/revisions\/15475"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/media\/15472"}],"wp:attachment":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}