By Kane White, CEO & Founder of Britannia Bullion
I’m not a fan of complicated words. Life’s difficult enough, especially when you’re working hard, raising a family, and trying to protect what you’ve earned. So let me put it:
Gold has just been given a serious upgrade by global banking regulators, and that matters more than people think.
What’s Basel III and Why Should You Care?
You’ll hear it called Basel III, and it sounds like something cooked up by Swiss bankers in a boardroom. It is, but don’t switch off just yet.
Basel III is a global banking rulebook that outlines what banks can count as "safe" when it comes to reserves. In the past, gold, especially paper gold (such as futures and unallocated accounts), was viewed as risky, akin to holding a bet rather than the actual commodity.
But that’s changed.
As of now, physical gold is recognised as a Tier 1 asset. That puts it on par with cash in terms of safety and liquidity. It’s a significant shift, and it says something loud and clear:
Real gold matters more than paper gold.
Why This Is Bigger Than It Sounds
For decades, the gold market’s been bloated with paper promises, contracts, derivatives, and synthetic positions that rarely involve the delivery of actual gold.
Banks made fortunes trading this paper gold, but Basel III makes that much harder, and far less attractive. Why? Because now only allocated, physical gold counts properly on their books. If they want gold to matter, they must own it, not pretend to do so.
What This Means for Everyday People Like Us
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It’s about trust. If the world’s biggest banks now prefer physical gold over paper, that’s a message worth listening to.
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It could tighten supply. If more institutions are now holding real gold, not contracts, expect physical gold to become harder to source, especially during uncertain times.
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It supports price stability. Basel III could alleviate much of the artificial price pressure we’ve seen in manipulated futures markets.
And here’s the real point...
If You’re Saving, This Affects You
This isn't about trading. It’s about wealth protection.
Whether you’re putting something aside for the future, looking after your family, or just trying to stay ahead of inflation that feels far higher than the headlines admit, knowing that physical gold is now officially regarded as one of the safest assets on earth should give you pause for thought.
Basel III didn’t make headlines, but it just made gold even stronger.
If you want to chat through what it means, I’m always here. No pressure. Just straight talk, always in plain English.
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Kane White
Founder & CEO | Precious Metals Specialist
Gold Bidder
Britannia Bullion
Montford Group
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