What Is Happening at the End of March, and What Does It Mean for Gold?

What Is Happening at the End of March, and What Does It Mean for Gold?

March 29, 2019

Many people around the world are speculating about the future of gold right now. Why is there this sudden surge of hopefulness that gold will have a great year? It all has to do with the implementation of the Basel III requirements, which are slated to go into effect at the end of March 2019.

If you’ve been following the news, you might want to work with a gold dealer to make sure you get your hands on some precious metals while prices are lower. Read on to find out why!

Why Is March Important?

As mentioned above, the regulatory guidelines known as Basel III are set to go into effect very soon. These guidelines, from the Basel Committee on Banking Supervision, are meant to prevent banks from risky business decisions that could contribute to financial crises like the one we witnessed in 2008.

The Basel III regulations have made changes to the different asset tiers. You can read up on the complex capital gains requirements, but the upshot for gold is that banks can soon consider gold holdings—those marked to market—as the same value of cash. They will have no effect on the capital gains requirements, which makes them an alluring investment for banks.

What Will Happen with Gold?

The big news so far is that 2018 saw a huge increase in the amount of gold being purchased by banks. The World Gold Council said that central banks purchased 651.5 metric tons of gold, mainly from places in Russia and China.

There are reports that central banks have been playing around with gold prices in order to buy it cheaply, though this has not been fully proven. Still, some experts in the field speculate that after the Basel III regulations go into effect, the banks will stop repressing the price and gold will begin to rise in the markets. If this is true, your own gold could increase in value. As with all reporting on financial markets, however, there’s still a lot of skepticism. Many experts warn against getting too excited about this specific date and continue to watch price fluctuations.

Find the Right Gold Dealer Right Now

If you hope to work with a gold dealer, now might be the perfect time. Whenever you’re dealing with your financial future, it’s important to work with a company that you trust with your livelihood. One of the best around is Gold Wealth Financial. We take pride in our ability to protect your investments by keeping abreast of current events, watching the markets very closely and helping our clients make the best decisions about when to buy, sell or sit tight.

Gold Wealth Financial is one of only a few precious metals advisors that has been approved by Investopedia, and that’s because of our wealth of experience in the gold and silver markets. It’s time to build up your security with some wise investments. Get in touch with us today for more information about how we can assist you!

- by Steve Hunt

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