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Basically banks will be required to carry a percentage of their so-called assets as tier 1 assets. Tier 1 assets are the best assets.

This relates to Gold because physical gold will now be able to be counted as a tier one asset in a bank. In the past it was not. Furthermore paper gold meaning a piece of paper that says you own some physical gold that is with some other company will not be considered a tier one asset but only a tier 3 asset. So promises from another company that you own gold that they have somewhere in a vault will not be a tier one

Belong in the short of this is that in the coming months more banks will be more interested in owning physical gold to meet the regulatory requirements

Furthermore the impact on the dollar is that they'll be less and less reason for banks and other players to own dollars and it will further accelerate the shift away from the US Federal reserve dollar as a reserve currency for the world because it will be viewed properly as it should have always been viewed as a paper promise.


Anyway it's a short video you should watch it and explain this