The gold market is being hit with a tidal wave of incor-rect information at present. In the past two weeks or so, there have been several stories suggesting that gold would be elevated to a Tier 1 asset status in the Basel III bank regulations, or that it already had been re-rated. There have also been stories that the Bank for Interna-tional Settlements directed commercial banks to down-play their gold activities, that Swiss banks were starting to offer allocated accounts for the purpose of trying to discourage investors from holding unallocated metal, and a plethora of garbled theories about the real reasons for the German Bundesbank to announce plans to repatriate a portion of its gold monetary reserves over the next sev-eral years. These stories and assumptions are, for the most part, inaccurate. That the gold market has been un-able to discriminate between obviously inaccurate state-ments and reality is not surprising, but it does speak to some of the problems that the gold market has in terms of the quality of information and analysis circulating in it that scares many institutional and individual investors away from gold. This is a market where even the most outrageously inaccurate statements are taken as fact by many investors.
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