Kurt Nimmo
Infowars.com
June 28, 2012

The Federal Reserve has circulated a memorandum for comment that classifies gold bullion as a zero risk asset, according to John Butler and Financial Sense.

“For the first time, unencumbered gold bullion is to be classified as zero risk, in line with dollar cash, US Treasuries and other explicitly government-guaranteed assets,” he writes.

Butler states that the move amounts to the re-monetization of gold. He speculates that the Fed may be ready to change bank regulatory risk weightings in favor of gold.

He also believes the move will significantly improve the position of gold. In recent months, the precious metal has weathered a downward trend. He writes that “unless the regulators backtrack, I see this as clearly bullish for gold, enabling much catch-up to Treasuries.”

The reclassification is proposed to take effect on January 1, 2013.

In the meantime, gold has continued its roller-coaster ride. On Wednesday, the price went up on the rumored possibility that the European Central Bank may cut interest rates under 1% and possibly under zero, as we reported yesterday.

Gold for August delivery rose a modest $1.50 or 0.1% to $1,576.40 a troy ounce on the Comex. It briefly reached $1,584.60 after chief ECB economist Peter Praet made his comment about interest rates.


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