mining.com / By Marc Howe | November 30, 2012
On the eve of the implementation of the Basel III capital rules governing the world’s largest financial institutions veteran investor Eric Sprott points to gold as the most convenient and over-looked solution to the global banking system’s woes.
The Basel Committee on Banking Supervision, responsible for devising guidelines for the world’s leading financial institutions, has spent the past four years since the Great Financial Crisis drafting a new set of international banking regulations to prevent the recurrence of similar catastrophes.
The new rules are slated to take effect on 1 January 2013, yet only months prior to their scheduled implementation they have already triggered refractory responses – particularly in the United States, due to their complexity and adverse impact on profits.
In a trenchant essay on the new regulations Sprott highlights what he believes to be one of their chief defects – their treatment of gold as an asset class.
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