Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15

ZeroHedge ^ | 6/18/11

[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.

[eyedigress]

My Gold is legal tender, this is a bunch of malarkey unless the US treasury decides not to back their own money. Of course what a man wants to pay is up to him.

[RatRipper]

You gold doesn’t help you if there is no functioning market and you cannot sell it.

[little jeremiah]

Does this mean no going to the local coin/silver store and buying or selling a small amount?

[aruanan]

Why is it that all of the absolute worst laws seem nearly always to come from leftist Democrats?

[Terry Mross]

That’s my question. If a person can’t sell his metals this would make gold and silver prices go through the roof on the black market.

[eyedigress]

If there is no functioning market nor will that job killing ATM help you.

[Domangart]

No

[Squantos]

http://www.mofo.com/files/Uploads/Images/SummaryDoddFrankAct.pdf

Cheat Sheet ...short version of the act.

[Sawdring]

No, it means if you trade gold and/or silver in the Forex market you have to take delivery of the metal.

[SE Mom]

This is really scary. Not funny anymore. I trade on forex some and was just starting to trade silver @forex.com.

What can we do to protest this? Next thing they’ll tell us we can’t trade currencies.

This Dodd Frank bill is an outrageous infringement on freedom.

[Buckeye McFrog]

trial balloon...if it works they will impose something similar on oil futures, corn futures, etc.

[21twelve]

Sounds like that is the wording in the new law? Would that be for such things as “gold certificates” or whatever? Perhaps it is so a company can’t “sell” gold or silver to folks and then keep it in “storage” without actually having it there in storage.

My little bit of reading on the matter is that some (all?) of those places have more certificates out than they have gold in hand. Treating themselves more like banks, than actual gold storage facilities. If that is the case, then I imagine if I was the type to pay $100/year to let someone else keep my gold, I would like the assurance that I REALLY did have gold, and not just some piece of paper. Although I guess the law is just another piece of paper and still no “assurance”.

[wtc911]

FOREX OTC trading is not the same as purchasing physical gold, silver, etc at your local coin dealer.

[Terry Mross]

If you’re reading this right it sounds like some of the big banks may be in trouble. Of course I doubt it applies to them.

[XenaLee]

Gee...what a surprise. Dodd and Frank...two of THE most corrupt Democrats in the history of America.

I’m thinking we need a miracle or divine intervention right about now.

[Terry Mross]

Thank you for clearing this up. I can stop hyperventilating now.

[sergeantdave]

“No, it means if you trade gold and/or silver in the Forex market you have to take delivery of the metal.”

Thanks for the answer, Sawdring. So this law is going after the paper traders in gold and silver? I read the linked article but came back with mud in my eyes, meaning it clarified nothing for me.

[Jet Jaguar]

Thanks!

[Eaker]

Open confiscation would lead to rebellion at least at the ballot box.

The only gold Odinga voters have is in their mouths.

This is why he can raise the highest tax rate to 100% because they don't pay any taxes, damn sure not the highest rate.

[Ohioan]

If this is accurate, it puts Americans at a tremendous disadvantage with respect to other industrious peoples. It also increases the relevance of my current Feature--although that is a minor consideration:

See Gold & Money In America, II.

For thousands of years, people have used gold & silver to protect themselves from political monetary manipulation, intended to tear away the fruits of their labor and ingenuity. That is why the Founding Fathers, whose accomplishments Obama set out to "change," forbad the States from making anything but gold & silver a medium for the discharge of debt.

If this is true, again, it forshadows a hastening of the pace towards the achievement of the Obamanists' proclaimed goal. Do they also intend to cancel the 2012 election? The Constitutional mandate for the one is no clearer than that for the other.

William Flax