gata.org / By Henry Sanderson, Financial Times, London October 20, 2016
Gold refiners are warning that regulators’ plans that forces banks to utilise longer-term funding against their holdings of the precious metal will ultimately make it more costly for consumers buying jewellery.
Banks lend gold to refiners, which typically use it to pay suppliers and customers, but under new rules proposed by the Basel Committee on Banking Supervision, the costs to banks could triple, according to the London Bullion Market Association.
“It will mean the banks will pass this cost on,” said Grant Angwin, president of Asahi Refining, a Salt Lake City-based refiner with operations in five countries. …
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