Posted on 10/21/2009 9:55:30 AM PDT by FromLori
Allen Lewis emails:
This was brought to my attention today. Now you don't even have to have USD (or EUR or JPY or any other fiat currency) for collateral. It will be interesting to see how many CME member firms take advantage of this, and if the idea spreads to other exchanges:
NEW YORK, Oct 19 (Reuters) - CME Group Inc , the world's top derivatives exchange operator, began accepting physical gold as collateral for all trading products, marking the first time an exchange has allowed gold bullion to be used for margin requirements. CME's latest move underscored the rising popularity of gold as an investment asset class.
The new policy represents a more efficient way for clearing member firms to utilize their own gold bullion, said CME Group spokesman Jeremy Hughes. I never thought I would see the day this happened. A major exchange is for all practical purposes accepting gold as a currency.
The CME Group consists of the CME , CBOT, NYMEX and COMEX.
Okaaayyy.
How ‘bout that!
Gold being used as money. I wonder why nobody ever thought of that before.
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