|Page (1) of 1 - 06/19/12||email article||print page|
Gold Is Money; Special Report by Leading Financial Web Site Penny Stock Detectives(June 19, 2012)
New York, NY (PRWEB) June 19, 2012
In a recent Penny Stock Detectives article, editor Danny Esposito points out that despite so-called experts proclaiming gold as nothing but a useless asset, gold has been considered money for 5,000 years. Esposito notes that while these experts talk, central banks around the world continue to accumulate gold bullion at a record pace.
Just recently, the Bank of International Settlements (BIS)an institution created by the central banks around the world to foster financial and monetary stability globallyis considering making gold bullion a Tier 1 asset, notes Esposito.
A Tier 1 asset is simply regarded as the highest AAA asset class in the world, Esposito continues. After the financial crisis hit in 2008, regulators have been forcing the banks to hold assets to back their debts. Of course, regulators wont allow the banks to decide what those assets should be.
Instead, regulators have decided to include only the highest quality AAA assets, according to rating agencies, in their Tier 1 capital. The problem is that since the financial crisis of 2008, many countries and corporations have been stripped of their AAA rating. This translates to fewer asset choices for banks to include in their pool of Tier 1 assets, Esposito explains.
Globally, the number of AAA assets has dropped roughly 33% since 2008, according to Espositos article. Since fewer and fewer Tier 1 assets are available to banks, the BIS is considering adding gold bullion to the mix, offering banks another choice.
Should gold bullion be placed in the category of Tier 1, this will increase demand for the precious metal from banks around the world, which means gold bullion prices should rise significantly as a consequence, believes Esposito.
Esposito concludes, While those so-called experts still attempt to vilify gold bullion, more and more people are waking up to the fact that, in these uncertain times, the best way an investor can protect themselves is the same way people have been protecting themselves for 5,000 years: through owning gold bullion.
To see the full article and to learn more about Penny Stock Detectives, visit http://www.pennystockdetectives.com.
The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.
Read the full story at http://www.prweb.com/releases/2012/6/prweb9613796.htm.
Related Keywords:restraint of trade,international (foreign) trade,trade dispute,trade agreements,trade policy,trade balance,economy, business and finance,financial and business service,,business enterprises,business (general),economy, business and finance,financial and business service,investment service,business enterprises,business (general),fishing industry,cinema industry,radio industry,television industry,music industry,process industry,economy, business and finance,banking,personal investing,personal service,,personal income,