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 Replies: 14 / Views: 1,757 |
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Pillar of the Community
United States
648 Posts |
Several Forex.com customers are reporting receiving the following email regarding their precious metals positions: From: FOREX.com 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 http://silverdoctors.blogspot.com/2...ts-from.html |
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Valued Member
United States
362 Posts |
Sounds like a gimmick to try to make everyone buy as much as they can by July 15th, I'm sure if the government was gonna stop gold and silver trading there would be a big fuss about it lol Edit http://truthsquad.tv/?p=586Found some info after Googling. Looks like the are doing some interpreting Edited by ICanSeeYou7687
06/19/2011 10:11 am
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Pillar of the Community
United States
931 Posts |
Is Forex a stock company or do you actually take physical possession of your precious metals purchases?
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Pillar of the Community
United States
830 Posts |
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Pillar of the Community
United States
570 Posts |
Here is an article regarding this on fxstreet: http://www.fxstreet.com/education/m.../2010/08/06/. Scroll to the section under "How does it affect Forex Trading?" I thought that was pretty interesting that there is an exemption for commodities that are delivered within 28 days. I don't actually have a Forex account so not sure if what they are doing is a scam or not. Just thought this was an interesting article. |
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Valued Member
United States
384 Posts |
So this basically applies only to people who trade commodity contracts on PM. And only if they trade contracts without the ability to deliver the goods, aka speculators. Since forex dot com has no way of determining who can actually deliver, and who is taking on a speculative position only, I guess they have decided to get out of that business altogether.
I think, this piece of news means nothing for the rest of us who don't trade commodity contracts.
Edited by AlmostCollectible
06/19/2011 4:40 pm
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Pillar of the Community
United States
830 Posts |
So positions in GLD or SLV wouldn't be effected?
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Valued Member
United States
384 Posts |
NO, I don't think this has anything to do with ETFs.
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Pillar of the Community
United States
830 Posts |
Because if so I'd be willing to take delivery of long positions.  Edited by GoThunder
06/19/2011 4:51 pm
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Pillar of the Community
United States
4008 Posts |
Well, there they go again... tinkering with things about which they know practically nothing. This, in spite of the fact that they would be VERY hard-pressed to give examples of where such meddling with the economy was actually of any true benefit to the nation or its citizens. As in many things, the real motivation for this can be ascertained via a "follow the money" plan. Once we see who is getting rich from this, we will know who was in on it from the start. Obviously, the politicians who craft such things will be getting paid and most likely up-front. I'm convinced that the US economy has been tinkered to death and this is yet another fine example.  |
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Pillar of the Community
United States
860 Posts |
It seems to boil down that certain companies dealing with futures contracts (outside of CME or other exchanges that report to the SEC or similar government regulatory agents) don't want to do so. Being unregistered and basically unregulated, they do not have to have any safeguards for their clients.
They can still trade future contracts as long as they are contracted for 28 day delivery. But this isn't where the money is, IMO, it is in margins and speculation, and not the fees associated with actual deliveries of PM.
It will not affect any person buying or selling PM bullion by normal means. Nor ETFs or any Options or futures ( margined or un-margined) that goes through the SEC regulated commodity exchanges. If it performs as written, it should reduce speculation. Of course many may not want that.
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Rest in Peace
United States
9104 Posts |
Does this mean banks and brokerages won't be allowed to tradce paper PMs, or just hooman beans?
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Valued Member
United States
271 Posts |
So all trading can only be done on physical metals that can be delivered in 28 days. Interesting. Now I'm wrestling with myself over how this will effect the price of bullion in my hand. I can see logical arguments that can go either way with this. But I'm leaning to believe this will drive down the price of bullion after July 15th. However, I will speculate that until then the price will rise as it seems that there is a lot of misunderstandings and rumors circulating around right now and I'll guess that will create a surge in demand temporarily. Or maybe I'm completely wrong about everything. I'm not buying anything at the moment. I'll just sit back and watch.  |
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Pillar of the Community
United States
931 Posts |
Guess it's time to pick up that kilo of gold that I've been stashing my lunch money away for.
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Pillar of the Community
United States
4008 Posts |
Quote:
It will not affect any person buying or selling PM bullion by normal means. Nor ETFs or any Options or futures... Not yet, anyway. OTOH, the government tends to work via incrementalism. They steal a bit of our freedom and then sit back to see if we noticed. If not, they steal a bit more and repeat the cycle. There seems to be no end to this short of open revolt or absolute tyranny.  |
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Replies: 14 / Views: 1,757 |
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Posted 06/19/2011 12:32 pm
