What do you all make of this?

[Brian B]

Could coins and bullion be far behind?


From: FOREX.com <[email protected]>
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxx

Important Account Notice Re: Metals Trading


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.

We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.

We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.

Sincerely,
The Team at FOREX.com

 

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[FreedomUIC]

http://banking.senate.gov/public/_f...Street_Reform_comprehensive_summary_Final.pdf

This is a summary, couldn't make heads nor tails why Forex.com(never heard of them) would do that?

 

[jim4silver]

http://banking.senate.gov/public/_f...Street_Reform_comprehensive_summary_Final.pdf

This is a summary, couldn't make heads nor tails why Forex.com(never heard of them) would do that?

Forex is the foreign currency exchange, sort of like what the Comex is for commodities. I never knew silver and gold were traded on Forex, but apparently they won't be anymore after July. I thought I read somewhere that in the Forex, it is simply leveraged paper trades without the possibility of delivery, unlike what can happen in the Comex market. I didn't read the Dodd Frank bill so I don't know anything about it or why it caused the Forex to stop over the counter trading in silver and gold.

This does not affect buying or selling physical coins/bullion nor trading in the Comex exchange from what I have read.

Jim

 

[Brian B]

http://banking.senate.gov/public/_f...Street_Reform_comprehensive_summary_Final.pdf

This is a summary, couldn't make heads nor tails why Forex.com(never heard of them) would do that?

Forex is the foreign currency exchange, sort of like what the Comex is for commodities. I never knew silver and gold were traded on Forex, but apparently they won't be anymore after July. I thought I read somewhere that in the Forex, it is simply leveraged paper trades without the possibility of delivery, unlike what can happen in the Comex market. I didn't read the Dodd Frank bill so I don't know anything about it or why it caused the Forex to stop over the counter trading in silver and gold.

This does not affect buying or selling physical coins/bullion nor trading in the Comex exchange from what I have read.




Looks like it's gonna be all OTC (unless you're worth $1mil or more) according to this: www.zerohedge.com/article/trading-over-counter-gold-and-silver-be-illegal-beginning-july-15

Jim

 

[jim4silver]

http://banking.senate.gov/public/_f...Street_Reform_comprehensive_summary_Final.pdf

This is a summary, couldn't make heads nor tails why Forex.com(never heard of them) would do that?

Forex is the foreign currency exchange, sort of like what the Comex is for commodities. I never knew silver and gold were traded on Forex, but apparently they won't be anymore after July. I thought I read somewhere that in the Forex, it is simply leveraged paper trades without the possibility of delivery, unlike what can happen in the Comex market. I didn't read the Dodd Frank bill so I don't know anything about it or why it caused the Forex to stop over the counter trading in silver and gold.

This does not affect buying or selling physical coins/bullion nor trading in the Comex exchange from what I have read.




Looks like it's gonna be all OTC (unless you're worth $1mil or more) according to this: www.zerohedge.com/article/trading-over-counter-gold-and-silver-be-illegal-beginning-july-15

Jim

The term "over the counter trading" has a very specific meaning with respect to stocks and other types of investments. It has absolutely nothing to do with buying or selling physical silver at your local coin store or internet coin dealer. It also has nothing to do with Comex trading.

Further, the types of trading that will end in July are pure leveraged "paper plays" on silver and gold and did not involve physical metals or the possibility of delivery. I believe that by eliminating the forex trades it will drive more traders to the Comex or possibly to ETFs. I don't know how that will affect the physical price of silver and gold one way or the other.

If you google "over the counter trading" you will see what that term really means.

Jim

 

[Brian B]

Thanks. I just wonder if this could be a start of more PM legislation.