Gold and HQLA: Between Market Perception and Regulatory Reality According to the LBMA
In recent years, the idea has spread that gold can be considered a primary liquidity asset, comparable to cash or government bonds. However, as clarified by the LBMA (London Bullion Market Association), it is important to distinguish between market perception and regulatory reality.
According to the LBMA, gold is not currently officially classified as a High Quality Liquid Asset (HQLA) under the Basel III framework. This means that banks cannot yet treat it, from a regulatory perspective, as a liquidity reserve equivalent to cash. Some interpretations circulating online are therefore inaccurate or misleading.
That said, the LBMA itself acknowledges that gold possesses typical characteristics of highly liquid assets: it is traded on global markets, has significant market depth, and retains recognized value even during periods of financial stress.
Precisely because of these qualities, central banks continue to increase their gold reserves, considering it a strategic element for stability and diversification. This is not a formal classification, but rather a practical use that reflects confidence in gold as a real reserve asset.
In this context, gold confirms itself as a unique asset: it is not anyone’s liability, it is physical, global, and independent from the traditional financial system.
IGE GOLD fits into this vision by making physical gold accessible as a modern tool for wealth protection and asset management, in full compliance with regulations and with a transparent and informed approach.
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