Posted on 06/18/2011 1:46:50 PM PDT by NativeNewYorker
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.
(Excerpt) Read more at zerohedge.com ...
“CME clearing are somehow about to go tapioca...”
I’ve read a ton of financial press but never heard of the tapioca gambit.
Please explain.
Read it. “on margin”
“...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.”
It doesn’t affect the small retail buyer or coin dealers.
Too many people get nailed by not understanding margin requirements or that they can really lose bigtime.
Nothing good can ever come from legislation with those two names on it.
I’ve heard people say that bout the safe deposit boxes, but never saw anything in legislation or XO about that. Nobody seems to be able to provide a cite or source for that claim. Not saying it didn’t happen, but seems suspect.
There was a precedent setting court case about a fellow who had gold bars on deposit at a bank, but that’s not the same thing at all. From what I have read gold coin didn’t circulate all that much with the public by that time, although the banks presumably had quite a bit. Hogwever, it seems in hindsight that FDRs diktat “leaked” to quite a number of wealthy individuals prior to the public, and they sent their wealth overseas. Europe has been disgorging US coinage to collectors ever since.
That is when gold would be the most important, it would serve as money.
Safe deposit boxes were opened on Federal authority, inspected and any gold bullion or coins seized. They were compensated the government established rate of $35.00 an ounce.
I heard this tale recounted several times in my early life from people who lived through the Great Depression, lost practically everything they had in a bank failure, of a bank owned by cousins. They made out better than most, getting ten cents on a dollar for their deposits. Their safe deposit box was opened and what gold they had was seized. They had no reason to lie, they were no gold bugs, it was currency at the time, or up to that time at least.
They were my paternal grandparents. I have no law to cite, just their word. I accept it. They’re long gone. Again, no reason to lie about it.
Correction to post # 61:
The idea was to inflate the currency by giving gold a dollar value less than it had been under the gold standard.
Correction to post # 61:
The idea was to inflate the currency by giving gold a dollar value less than it had been under the gold standard.
No as in such sales are still okay or No as in such small sales are not okay?
You can never have enough Firepower and Vittles. Dont hoard it all in one spot.
Yeah, I’ve heard the stories, and like I said, don’t doubt them.
What I’m looking for, is the legislation or something stating to that effect.
Individuals were allowed to keep up to $100 in gold (about 5 ounces) coin,
and collector coins of unusual value. Considering the pickle America is in financially today makes the whole FDR thing look pretty scary in hindsight, and people wondering about Ft. Knox.
Lately I've come to think that it was the CONTRACTION of the Federal government following WWII that brought us out of the Depression. All those soldiers came home and somehow they all got mostly private sector jobs that didn't exist when they were shipped overseas. Government spending also CONTRACTED as the need for military arms, equipment and supplies diminished.
Click here for a customizable historical chart of US Govt spending as a percentage of GDP.
ML/NJ
After reading your post again, I’d point out that it was worse than your grandparents remembered in at least one angle - the government only paid out the face value for gold coin or about $20 per ounce. A couple years later after the “call in” the dollar was devalued against gold and the price eventually raised to $35, where it remained for another thirty years until the last vestige of “the gold standard” collapsed, and pretty much no limits placed on currency printing. Oh well.
Nicely done. I didn't realize how true this is until I read it and gave it some thought.
“...does this mean I can’t walk into a coin dealer and cash out a roll of silver eagles?”
NO, but you can’t as a private investor buy and sell futures in the metals market, unless you take or make delivery. Private speculators are out, but the banks and big corp. dealers are not affected.
Apparently, it really hit the fan around here in 1934 and that is when the bank failure in question occurred. How that ties into any then-current valuation scheme for compensation is not a topic I could readily say anything about, other than the family story I’ve related.
Well, I suppose the larger point is the FDR administration confiscated all the money 80 years ago, and today America is in deep $hit. Nobody could see this coming. /sarc
No
That is what they need to do with Oil.
http://answers.yahoo.com/question/index?qid=20071005061907AA5tiqU
[snip] At this time, no country is fixed to a gold standard. The gold standard effectively came to an end in 1933 when President Franklin D. Roosevelt outlawed private gold ownership (except for the purposes of jewelry). The Bretton Woods System, enacted in 1946 created a system of fixed exchange rates that allowed governments to sell their gold to the United States treasury at the price of $35/ounce. The Bretton Woods system ended on August 15, 1971, when President Richard Nixon ended trading of gold at the fixed price of $35/ounce. At that point for the first time in history, formal links between the major world currencies and real commodities were severed. The gold standard has not been used in any major economy since that time. [/snip]
The reason for his action was that the total government debt had exceeded the value of the government’s pile of gold. The reason that happened was decades of federal overspending due to Congressional pork barreling (Demwits have controlled both houses of congress for most of the past 78 years) and lack of Presidential line-item veto.
http://www.galmarley.com/framesets/fs_commodity_essentials_faqs.htm
[snip] How much gold is there? In the world there are currently somewhere between 120,000 and 140,000 tonnes of gold ‘above ground’. To visualise this imagine a single solid gold cube with edges of about 19 metres (about three metres short of the length of a tennis court). That’s all that has ever been produced.
Divided amongst the population of the world there are about 23 grams per person, about 1.2 cubic centimetres each. This equates to about $250 - $350 worth per person on Earth, depending on the current price. [/snip]
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