Starting July 1, 2025, Basel III banking regulations will officially recognize gold as a Tier 1, high-quality liquid asset, allowing US banks to count physical gold at full market value toward their core capital reserves. This marks a significant upgrade from its previous classification as a Tier 3 asset valued at only 50%.
The change validates the author’s long-held position that gold is true money and a strategic asset for modern investors. Central banks have already embraced this perspective, adding 244 metric tons to their reserves in Q1 2025—24% above the five-year quarterly average.
This continues a trend that began after the 2008 financial crisis and accelerated following gold’s initial reclassification under Basel III in 2019. A record 30% of central banks now plan to increase their gold holdings in the coming year.