In June, gold finally broke through the technical US$ 1.360
barrier and has been moving steadily around the US$ 1.400 level
since, reaching its highest level at US$ 1.453,09 on 19th July,
since May 2013. The headlines are signaling a gold bull market
developing from news reporters, to banks and central banks, to gold
miners. Naturally, there are always reasons why a certain asset
class develops in any specific way. For gold at the current moment
there are at least 6 strong catalysts that are all converging at
the same time which are analyzed here under.
1. Basel III – 0% Realization Risk Weight on Gold
Basel III went into effect worldwide on 1st April, 2019.
Non-liquid assets are evaluated in the bank statements of banks
under the consideration of the difficulty to liquidize an asset.
The specific difficulty to liquidize a non-liquid asset is entered
in the books in form of a value deduction. The value deduction may
be a few percent (10,20,25%) depending on the
