Starting July 1, 2025, physical gold will officially be classified as a Tier 1, high-quality liquid asset (HQLA) under the Basel III banking regulations. This significant change allows U.S. banks to count physical gold at 100% of its market value toward their core capital reserves, aligning with global standards.
Previously, under Basel II, gold was considered a Tier 3 asset, requiring banks to discount its value by 50%. With the new classification, physical gold is treated on par with cash and U.S. Treasuries, enhancing its attractiveness for banks’ balance sheets. This shift brings significant opportunities for GB Gold and its members:
1. Higher Demand for Physical Gold
- Banks and financial institutions around the world are expected to increase their holdings of physical gold to strengthen their reserves.
- This surge in demand is likely to push up gold prices, benefiting GB Gold members with existing gold savings.
- As a dealer, you can attract more members by promoting gold as a secure and appreciating asset.
2. Stronger Hedge Against Inflation
- Gold’s classification as Tier 1 shows its value as a safe-haven asset that is less affected by currency fluctuations and inflation.
- For GB Gold members, this means their savings are better protected against market volatility and currency depreciation.
3. Increased Trust and Confidence
- Basel III’s recognition of gold strengthens its image as a global standard of wealth preservation.
- This makes it easier to promote gold savings and memberships, as the asset is now more respected and trusted by financial institutions.
4. Potential for Higher Returns
- As demand increases, the market price of gold is projected to rise, offering higher potential returns for members who buy and save gold with GB Gold.
- This is a great opportunity for you to promote long-term gold savings as a profitable investment strategy.
5. Enhanced Marketing Opportunities
Highlight that joining GB Gold means investing in a globally recognized asset that banks are now prioritizing.
With the global acknowledgment of gold as a Tier 1 asset, you can use this momentum to boost your marketing campaigns.
Kidin Sam