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 ...
There are a lot of the sections and subsections to read if you want to understand most of the law, but it should just be called the Dollar Protection Act.
“There is an exemption for commodities which are actually delivered within 28 days.”
So this is reference to commodity contracts only. Sounds good, as it should limit companies from selling silver/gold that they don’t actually have. Prevent them from selling you silver/gold that they are unable to deliver.
This is not a bad thing.
Forex’s response is probably more a matter of limited gold/silver supplies. If they are not sure that they can deliver the physical commodity within 28 days, then certainly customers should reconsider doing business with them.
If congress is passing laws you know that they are planning on limiting your freedom. There just havn’t been enough government shutdowns. If the market for gold and silver for private citizens will become illegal, will the government stop minting gold and silver eagles? They recently starting minting silver eagles in San Francisco. If the PM safe haven becomes illegal its going to be a game changer.
Someone more knowledgeable can comment, but I think that I read *foreign currencies”.
To anyone: does this affect holding CD’s in non-US$ currencies?
Trade the futures. CME Group have a nice little mini-gold contract that is very liquid. Also a 1000 oz. silver contract. Much better leverage AND no need for paranoia unless one happens to believe that CME and CME clearing are somehow about to go tapioca (which belief I will cheerfully fade, if you fancy losing money).
Why trade metals in the forex mkts at all? Sheesh.
What about the gold/silver store on eBay? No more?
Be careful, if one thinks about it, “yes” your Eagles are legal tender, but look at the amount of tender:
1 Dollar.
If the Gov ordered all us mint coins turned in for replacement by plastic slugs, if they paid you 1 “Dollar” in plastic slugs, then your metals would not have been “confiscated”.
That was what FDR’s goons did back in the 30’s, Gold was price controlled, he devalued Gold down to 19 dollars an OZ, confiscated it, then raised the price to 32 dollars an OZ.
Actually they are 50.00 but I will accept no less than 1600.00 worth of goods.
Good point. I am a banker and I am just waiting for a rash of ATM vandalism as a result of the Moron-in-Chief’s idiotic statement. It is wrong in so many ways, chiefly because ATMs make cash available for spending 24 hours a day, increasing the velocity of money in the economy. Unfortunately, Zer0’s view of the economy is reminiscent of a million Chinese digging with picks and shovels for a paltry government or union paycheck. . . on top of being evil to the core. . . IMHO
Accredited Investor Qualifications
Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:
1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor’s primary residence;
2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or
3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.
Based on this language, it is important to note that the revised accredited investor standard only applies to new investors and does not cover existing investors. However, additional subscriptions from existing investors are generally treated as requiring confirmation of continuing investor eligibility.
On July 27th, 2010, the SEC provided additional clarity regarding the valuation of an individual’s primary residence when calculating net worth. In particular, the SEC has interpreted this provision as follows:
Section 413(a) of the Dodd-Frank Act does not define the term “value,” nor does it address the treatment of mortgage and other indebtedness secured by the residence for purposes of the net worth calculation…Pending implementation of the changes to the Commission’s rules required by the Act, the related amount of indebtedness secured by the primary residence up to its fair market value may also be excluded. Indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from the investor’s net worth.
http://www.zerohedge.com/print/410025
Lemme get this straight. If I found a gold nugget out in the back yard, I can still sell it. If I found a silver dollar on the sidewalk, I can still sell it. If I found a dollar bill in the couch, the government still promises to pay me in gold for it. If I had a gold bond, I can sell it. Is that correct?
This law is to stop companies from selling you something on paper and not delivering it within 28 days? IOW, you may own paper but not the gold?
What exactly is this FOREX thing?
Stack physical gold and silver. This new regulation doesn’t prevent you from doing that. When the US$ collapses you will be king of your neighborhood.
July of this year is too soon.
He won't move on gold until he has confiscated the IRA's and 401k's.
Him with the most Firepower and Vittles that can protect his domain, will be king of the village.
Gold/Silver not very nourishing and wont make good ammo.
Why should it matter if Joe wants to buy into futures?
Gold/Silver not very nourishing and wont make good ammo.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.