DannyT Posted June 18, 2011 Share Posted June 18, 2011 Someone on Zero Hedge pointed this out in an article on Obama . In all honesty a lot of stuff on that site goes over my head so can someone please explain - people over there have mentioned this might be why Soros dumped his shiny stuff and it could be the start of the alleged gold 'bubble' popping "Just got a notice in the mail from my Forex broker. Apparently it is illegal to trade currencies against precious metals now. What a good way to show how safe the dollar is. From Forex.com: We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011. In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET. "I got the same notice. This is not good. Is shuting down the paper trade the beginning of shutting down the physical trade or is there something unique about Forex that made this happen?" Elimination of OTC Metals As for OTC precious metals such as gold or silver, Section 742(a) of the Act prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis. This provision intends to expand the narrow so called “Zelener fix” in the Farm Bill previously ratified by congress in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving rolling spot transactions and/or other leveraged forex transactions without the need to prove that they are futures contracts. The Dodd-Frank Act now expands this authority to include virtually all retail cash commodity market products that involve leverage or margin – in other words OTC precious metals. The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans. At the start of the comments here - http://www.zerohedge.com/article/guest-post-what-writing-book-taught-me-about-obama-and-those-who-followed-him Quote Link to comment Share on other sites More sharing options...
Stay Beautiful Posted June 18, 2011 Share Posted June 18, 2011 Someone on Zero Hedge pointed this out in an article on Obama . In all honesty a lot of stuff on that site goes over my head so can someone please explain - people over there have mentioned this might be why Soros dumped his shiny stuff and it could be the start of the alleged gold 'bubble' popping "Just got a notice in the mail from my Forex broker. Apparently it is illegal to trade currencies against precious metals now. What a good way to show how safe the dollar is. From Forex.com: We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011. In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET. "I got the same notice. This is not good. Is shuting down the paper trade the beginning of shutting down the physical trade or is there something unique about Forex that made this happen?" Elimination of OTC Metals As for OTC precious metals such as gold or silver, Section 742(a) of the Act prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis. This provision intends to expand the narrow so called “Zelener fix” in the Farm Bill previously ratified by congress in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving rolling spot transactions and/or other leveraged forex transactions without the need to prove that they are futures contracts. The Dodd-Frank Act now expands this authority to include virtually all retail cash commodity market products that involve leverage or margin – in other words OTC precious metals. The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans. At the start of the comments here - http://www.zerohedge.com/article/guest-post-what-writing-book-taught-me-about-obama-and-those-who-followed-him Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted June 18, 2011 Share Posted June 18, 2011 Doesn't surprise, they are desperate to keep people holding their monopoly money... Quote Link to comment Share on other sites More sharing options...
General Congreve Posted June 18, 2011 Share Posted June 18, 2011 Here we go, the US Govt. might as well take out a full page advert in the New York Times: HEY Y'ALL, THE DOLLAR IS DEAD!!! Quote Link to comment Share on other sites More sharing options...
jonb Posted June 18, 2011 Share Posted June 18, 2011 Someone on Zero Hedge pointed this out in an article on Obama . In all honesty a lot of stuff on that site goes over my head so can someone please explain - people over there have mentioned this might be why Soros dumped his shiny stuff and it could be the start of the alleged gold 'bubble' popping "Just got a notice in the mail from my Forex broker. Apparently it is illegal to trade currencies against precious metals now. What a good way to show how safe the dollar is. From Forex.com: We wanted to make you aware of some upcoming changes to FOREX.com's product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011. In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET. "I got the same notice. This is not good. Is shuting down the paper trade the beginning of shutting down the physical trade or is there something unique about Forex that made this happen?" Elimination of OTC Metals As for OTC precious metals such as gold or silver, Section 742(a) of the Act prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis. This provision intends to expand the narrow so called "Zelener fix" in the Farm Bill previously ratified by congress in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving rolling spot transactions and/or other leveraged forex transactions without the need to prove that they are futures contracts. The Dodd-Frank Act now expands this authority to include virtually all retail cash commodity market products that involve leverage or margin – in other words OTC precious metals. The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts' interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans. At the start of the comments here - http://www.zerohedge...ho-followed-him It is paper gold that is being banned, not physical gold. When you buy paper gold, your investment is backed by someone betting against gold rather than any physical product, and there is therefore counterparty risk. Quote Link to comment Share on other sites More sharing options...
General Congreve Posted June 18, 2011 Share Posted June 18, 2011 Does seem to me it could backfire badly though, as it bans buying and selling on leverage for those not taking delivery (from what I can understand). So surely that will just push buyers into buying physical metal directly or buying on leverage and taking delivery, thereby blowing a hole in the paper market (and thereby exploding the price) when the physical market comes up short on volume. Quote Link to comment Share on other sites More sharing options...
jonb Posted June 18, 2011 Share Posted June 18, 2011 Does seem to me it could backfire badly though, as it bans buying and selling on leverage for those not taking delivery (from what I can understand). So surely that will just push buyers into buying physical metal directly or buying on leverage and taking delivery, thereby blowing a hole in the paper market (and thereby exploding the price) when the physical market comes up short on volume. Paper gold is a scandal waiting to happen, so banning it probably isn't a bad thing. I don't think investing in gold is a good idea at the moment, but even if you do accept the arguments in favour of it, none of them apply to paper gold, so there is absolutely no reason to invest in it. Quote Link to comment Share on other sites More sharing options...
General Congreve Posted June 18, 2011 Share Posted June 18, 2011 (edited) Paper gold is a scandal waiting to happen, so banning it probably isn't a bad thing. I don't think investing in gold is a good idea at the moment, but even if you do accept the arguments in favour of it, none of them apply to paper gold, so there is absolutely no reason to invest in it. Of course, most of us on here know paper gold is a joke and helps severely dilute the true market price of real gold. I wouldn't be surprised if they are just closing down the routes for the multitude of smaller players who are no doubt net long on gold, while allowing the big banks who are net short to continue merrily playing their suppression game. That way they can take some of the upwards pressure on the price out of the system, for a short while perhaps. Although it may just act as an alarm bell for small investors to raid as much physical as they can get their hands on, driving the price higher and ultimately sinking the paper market (PAY DAY ). Edited June 18, 2011 by General Congreve Quote Link to comment Share on other sites More sharing options...
GreenWarwick Posted June 18, 2011 Share Posted June 18, 2011 Someone on Zero Hedge pointed this out in an article on Obama . In all honesty a lot of stuff on that site goes over my head so can someone please explain - people over there have mentioned this might be why Soros dumped his shiny stuff and it could be the start of the alleged gold 'bubble' popping "Just got a notice in the mail from my Forex broker. Apparently it is illegal to trade currencies against precious metals now. What a good way to show how safe the dollar is. From Forex.com: We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011. In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET. "I got the same notice. This is not good. Is shuting down the paper trade the beginning of shutting down the physical trade or is there something unique about Forex that made this happen?" Elimination of OTC Metals As for OTC precious metals such as gold or silver, Section 742(a) of the Act prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis. This provision intends to expand the narrow so called “Zelener fix” in the Farm Bill previously ratified by congress in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving rolling spot transactions and/or other leveraged forex transactions without the need to prove that they are futures contracts. The Dodd-Frank Act now expands this authority to include virtually all retail cash commodity market products that involve leverage or margin – in other words OTC precious metals. The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans. At the start of the comments here - http://www.zerohedge.com/article/guest-post-what-writing-book-taught-me-about-obama-and-those-who-followed-him "My advice is that markets are a nice convenient way of speculating play money for short term gains, but every serious investor needs to keep wealth outside the financial system too. That may be in your own business (if it is resilient) or it may be in real estate (people will always need places to live) or it may be by stashing gold bullion in an offshore safe deposit box" http://www.qwealthreport.com/blog/the-coming-devaluation-of-the-dollar-will-be-sprung-on-us-without-warning/ Ignoring the nonsense about real estate, maybe the rest has a ring of truth. P.S. Danny T, love the Hornets logo......see we're back on the managerial roundabout again.... Quote Link to comment Share on other sites More sharing options...
DannyT Posted June 18, 2011 Author Share Posted June 18, 2011 "My advice is that markets are a nice convenient way of speculating play money for short term gains, but every serious investor needs to keep wealth outside the financial system too. That may be in your own business (if it is resilient) or it may be in real estate (people will always need places to live) or it may be by stashing gold bullion in an offshore safe deposit box" http://www.qwealthreport.com/blog/the-coming-devaluation-of-the-dollar-will-be-sprung-on-us-without-warning/ Ignoring the nonsense about real estate, maybe the rest has a ring of truth. P.S. Danny T, love the Hornets logo......see we're back on the managerial roundabout again.... A man of good taste GreenWarwick , they don't call us the GOLDen boys for nothing yep graham,buckley,winter & malky gone in a matter of weeks , I like to be optimistic but I think we're gonna be fighting to stay up next season :angry: Quote Link to comment Share on other sites More sharing options...
DannyT Posted June 19, 2011 Author Share Posted June 19, 2011 thread going about this on a.t.s now if any 'tin-foilers' are interested http://www.abovetopsecret.com/forum/thread718226/pg1 Quote Link to comment Share on other sites More sharing options...
Ruffneck Posted June 19, 2011 Share Posted June 19, 2011 Good stuff , looks like July 14-15 is a great buying opportunity as we may see a large amount of physical come on to the market in the USA as private owners liquidate stock.Magic. Quote Link to comment Share on other sites More sharing options...
kraft Posted June 19, 2011 Share Posted June 19, 2011 Here we go, the US Govt. might as well take out a full page advert in the New York Times: HEY Y'ALL, THE DOLLAR IS DEAD!!! Actually they are trying to prevent gold bubble/fraud by regulating these leveraged OTCs. Quote Link to comment Share on other sites More sharing options...
Warwick Yellow Posted June 20, 2011 Share Posted June 20, 2011 A man of good taste GreenWarwick , they don't call us the GOLDen boys for nothing yep graham,buckley,winter & malky gone in a matter of weeks , I like to be optimistic but I think we're gonna be fighting to stay up next season :angry: Good to see I am not the only Gold Bug Watford fan in the world..............fear you are right, we are in nearly as much trouble as the UK economy and with even dodgier leadership............. Quote Link to comment Share on other sites More sharing options...
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