Banks allow gold deposits, Basel III counts gold reserves

[anthonydr2]

Implications?

My understanding is at least Turkey is requesting citizens deposit their gold to help stabilize the system.

Separately, I've heard Basel III may be implemented Jan 2013 and elevate gold to tier 1 status, same as US sovereign debt/obligations and little else.

If both these are true, how could the future not include multiple other banks and countries replicating the gold deposit, promising interest (even in gold, if needed)? If that happened, how would it not lead to a 2-10 year future scenario where gold is looked at as THE financially stable option for wealth holdings?

To be clear, I am NOT advocating anyone deposit into those structures, althoug
h many will...

[don]

Re: Banks allow gold deposits, Basel III counts gold reserves

The banksters may want our gold.

Hmmmm . . . .

[jk]

Re: Banks allow gold deposits, Basel III counts gold reserves

link?

[rtchoke]

Re: Banks allow gold deposits, Basel III counts gold reserves

link?

http://www.zerohedge.com/news/turkis...gs-bank-system

Turkey Gold.jpg

Government officials say the banking regulator will soon publish a plan to boost incentives for consumers to park their household wealth inside the financial system. Banking executives said they are considering new interest-yielding gold-deposit accounts that would allow savers to withdraw gold bars from specially designed automated teller machines.

The moves come after the central bank in November announced that lenders could hold up to 10% of their local-currency reserves in gold, in part to tempt Turkey's gold hoarders to deposit their jewelry, coins or bullion at banks.

Economists say the policy shift is designed to change Turks' historic preference for storing a high percentage of personal wealth outside the banking system as a way to protect themselves against the economic volatility that has periodically hit Turkey in recent decades.

The effort is one front in a broader battle to encourage more savings while curbing the ballooning current-account deficit—a pressure point many investors fear could upend a fast-growing economy, estimated to have expanded more than 8% last year. Turkey's current-account gap has expanded faster than expected in recent weeks amid a surge in oil prices and data showing unexpectedly high consumer demand.
We wish them luck:

For some Turks, the government will have to unveil a lot more sweeteners before they part with the family gold.
Because what may not be apparent to a Princeton Ph.D., is more than obvious to a 70 year old housewife in Istanbul:

[doom&gloom]

Re: Banks allow gold deposits, Basel III counts gold reserves

I wonder if the banks get the same tax treatment for moving into and out of gold as us common folk, huh? nahhhhhhh

[jk]

Re: Banks allow gold deposits, Basel III counts gold reserves

I wonder if the banks get the same tax treatment for moving into and out of gold as us common folk, huh? nahhhhhhh

the banks in question are in turkey. are you familiar with the turkish tax code?

[doom&gloom]

Re: Banks allow gold deposits, Basel III counts gold reserves

I actually was referring to when the banks get gold as a Tier 1 asset unde Basil III.

sorry i did not make that clear.