RE: condor20 Jan 2021 13:54
Basel lll is one possible impact on gold price realranger, in fact very likely in my opinion. Central banks have had a vested interest in manipulating prices to maintain exchange rates. However, something has to happen, someone has to break rank. It's no surprise that the 'enemies' of the US have been accumulating gold in the physical form.
As regards the banks, well they are bankrupt potentially. Having worked at a senior level in banking and seen how they assess risk of outstanding loans, then the red warning lights will have been flashing even before the pandemic. Furlough scheme and such like has been the 'finger in the dyke'. Some banks, including major European banks, will have major problems if say 5% of debt went bad. Their balance sheets are just too high. If 20/30/40% of smaller businesses and/or private customers default then what's the solution? I have a close connection with a business which was loss-making in its last financial year. This year.....well it's been closed since last April.
The FTSE/DOW levels are frightening. Where is your money safe, I ask?