Basel III: Gold’s Status as Tier 1 Asset Restored + Bank of Japan Monetary Policy, Competitive QE

Patricia Mohr, creator of Scotibank’s Commidity Price Index, talks Bank of Japan, Basel III, Eurozone and FOMC minutes, and what it all means for gold. Beginning with simple forecasts for gold into 2013, Mohr sees a rising US Dollar which puts pressure on gold, but nevertheless looks for gold prices to rise in January, with the focus/driving force being a weakening Euro and ongoing Eurozone worries. Another big development in the currency world was Bank of Japan’s monetary policy review and liquidity injections. Undertaking further quantitative easing, Bank of Japan hopes to prevent the Yen from rising against the US Dollar by moving towards easier monetary policy, thus preventing the Yen from appreciating. Another reason for Japan’s doing so is that as a large exporter, they don’t like to see an overly strong Yen. This is indicative of “competitive monetary easing” that we’re seeing elsewhere around the world, to keep currencies from appreciating against the US Dollar. Moving onto the latest FOMC/FED minutes, Mohr says they contain something she’s hasn’t seen throughout her entire career: the announcement that they plan to keep FED fund rates unchanged through 2015, regardless of economic improvement monetary policy will remain unchanged. Interest rates this low for this long a period of time is unprecedented and “extraordinary” according to Mohr, something likely bullish for gold. And perhaps an even more important development for gold come 2013 are Basel III
Video Rating: 4 / 5

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21 Responses to “Basel III: Gold’s Status as Tier 1 Asset Restored + Bank of Japan Monetary Policy, Competitive QE” Subscribe

  1. rfrates10 January 19, 2013 at 11:37 pm #

    The Japanese central bank believes that its current overnight call rate target is low enough, given the fact that already falls far short of the inflation rate. The BOJ decided it was better to stand pat and guard against the potential risks of any rate cut, such as an asset bubble. But there is speculation that the BOJ may be the keeping its ace in the hole so it can play the card should the economy worsen and need another jolt.

  2. ceovp January 19, 2013 at 11:57 pm #

    basel 3 rules making gold a tier 1 asset are what matters, not who is president,
    gold will have to go up as it becomes a tier 1 asset, they are beating around the bush, they don’t want you to buy gold

  3. rosco33ful January 20, 2013 at 12:48 am #

    Is it just me, or did this kind lady contradict herself at least 3 times in the first 60 seconds of this interview?

  4. Alexiscom1 January 20, 2013 at 1:24 am #

    Scotia is number one Paper Silver and Gold pusher in Canada. This lady primery job is to keep investors in all other asset beside physical gold and silver. It is good to hear what she has to say.

    I would love to have Ben Bernanky as a next guest for the interview about PM

  5. 1stinkfist January 20, 2013 at 1:43 am #

    i dont think im the only one that thinks this interview is wack.
    shes bullish on the metals in an obama presidency seeing the price at 1700 for gold and 34 for silver in 2013. well it looks like we’ve already peaked out so its time to sell up everyone! this lady looks like she knows what she’s talking about!

  6. maxxlexx1 January 20, 2013 at 2:33 am #

    HOLY PSYCHIC BATMAN $34 silver oh how does she do it…

  7. maxxlexx1 January 20, 2013 at 3:29 am #

    WOW $1700 gold i never seen that one coming…

  8. SilverMonsterBalls January 20, 2013 at 3:33 am #

    You would have to understand the culture of the RCMP. Google: RCMP’s problems go well beyond sex allegations

  9. toobphish January 20, 2013 at 4:28 am #

    This is very curious to me! I have a friend that lives in High River, AB; a town that used to have its own constabulary but now contracts with the RCMP to provide law enforcement in the town. The problem is that apparently there is no love lost between the RCMP and the townsfolk! I have no idea why this is, but my friend tells me that almost every traffic stop results in a near riot! I will see him Christmas, I am interested to ask him why this is? Thanks for the response.

  10. tyronebiggums3 January 20, 2013 at 5:17 am #

    at 4:11, after Daniela asks about Basel III and the return of Gold as a Tier 1 asset, check out the grin on her face.

  11. SilverMonsterBalls January 20, 2013 at 5:51 am #

    If 30.000.000 crazed American Refugees come streaming across the Canadian Border, I can asure you by that time the Mounties will have already ceased to exist. That entity will be a Historical memory. (So, I hope you are right about your 30.000.000 prediction)

  12. IrradiateTheNWO January 20, 2013 at 6:28 am #

    y don’t u freaks censor comments on this vid too ??

  13. prayfortruejustice January 20, 2013 at 7:20 am #

    Flocks of Black Swans on the horizon.

  14. amg11901 January 20, 2013 at 7:31 am #

    before and after.

  15. SilverBull2010 January 20, 2013 at 7:33 am #

    Great interview

  16. shysurfer January 20, 2013 at 8:29 am #

    Really conservative outlook, however she’s just throwing out averages.. And that’s great, that just means a stinger floor for gold, and means it will for sure above 5K in 2014, and 10 after that. Plus- after all countries start falling apart, and Israel and Iran and USA duke it out, gold and silver will go ballistic and vert. Keep stacking physical.

  17. Matthew Mitchell January 20, 2013 at 8:56 am #

    Gold traders shouldn’t be happy that the economies are being destroyed, only relieved they have made a good choice in a safe haven.

  18. TWSceptic January 20, 2013 at 9:09 am #

    1700 is very conservative and cautious, but some think it may even go to 1400 again… I think any dip should be bought because it’s going a LOT higher in 2013.

  19. hotneo7 January 20, 2013 at 9:43 am #

    How can you call it a prediction of $1700 in 2013 when gold is $1,730 now? $32.50 for silver now and not far from $34. Not really earthshaking predictions.

  20. toobphish January 20, 2013 at 10:33 am #

    I hope she enjoys it when 30.000.000 crazed American Refugees come streaming across the Canadian Boundary trying to flee the riots, after Barry S. destroys the American Economy. There aren’t enough Mounties in the whole wide world to keep those crackheads from occupying rural Canada! Good Luck!

  21. noodlesdoctor January 20, 2013 at 10:45 am #

    Once it becomes a tier 1 asset, how can gold not go up?

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