Gold Goes Full Reserve Asset As Basel III Elevates It To Tier 1 Status

Frank Holmes
4.24K Followers
(6min)

Summary

  • Gold's reclassification as a Tier 1 asset under Basel III validates its status as a strategic, high-quality liquid asset for modern investors.
  • Central banks are increasing gold reserves to hedge against currency debasement, geopolitical turmoil, and debt, signaling a trend retail investors should follow.
  • Despite gold's price surge, gold mining stocks face outflows due to operational risks, presenting a potential opportunity for retail investors to front-run institutional capital.
  • I recommend a 10% portfolio allocation in gold, split between physical gold and high-quality gold mining stocks, ETFs, or mutual funds, and regular rebalancing.

Bank vault door opened with bullion inside

PhonlamaiPhoto/iStock via Getty Images

For my entire decades-long career in capital markets, I’ve made the case that gold is not just a shiny relic of the past, but a serious, strategic asset for modern investors. After years of pounding the table, it feels pretty

This article was written by

4.24K Followers
Frank Holmes is a Canadian-American investor, venture capitalist and philanthropist. He is CEO and chief investment officer of U.S. Global Investors, a publicly traded investment company based in San Antonio, TX, that oversees more than $4 billion in assets (Nasdaq: GROW). He is known for his expertise in gold and precious metals and launching unique investment products. Holmes also serves as executive chairman of HIVE Blockchain Technologies, the first publicly traded cryptocurrency mining company (TSX.V: HIVE).

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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