Dodd-Frank Ban on Trade of Precious Metals to Go Into Effect Tomorrow
Currency trading site Forex.com sent out the following notice to traders this week, informing them that the Dodd-Frank Act's ban on the over-the-counter trade of precious metals will be going into effect tomorrow.
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. As a result, all open metals positions must be closed by July 15, 2011 at approximately 2pm EST.
We encourage you to wind down your trading activity in these products in anticipation of the new rule. Any XAU or XAG positions that remain open at approximately 2pm EST on July 15, 2011, will be automatically liquidated.
This Dodd-Frank provision, though ostensibly intended to curtail over-the-counter derivatives trading of the sort that led to the financial meltdown when AIG was unable to meet its obligations, significantly limits the freedom of smaller traders and investors to participate in the precious metals market. According to my source in the foreign exchange community, the prohibition on trading gold against the dollar and other currencies has got traders riled up and suspecting ulterior motives.
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Dec '10
Re: Dodd-Frank Ban on Trade of Precious Metals to Go Into Effect Tomorrow
It's funny you should mention that, 'cause it has crossed my mind a couple of times now.
In fact, I was going to throw in with a buddy of mine who lives in Michigan to go across into Canada and buy $10,000 US in Canadian pennies (while they were still pure copper) and then recycle them here in the US, 'cause their scrap value at the time was something like $0.03 US while their cost was only $0.0075 US.
The plan broke down when it came to how we were going to transport four tons of pennies across the border without getting nicked by customs.
We were also having a hard time finding $10k a piece too . . .
Aug '10
Re: Dodd-Frank Ban on Trade of Precious Metals to Go Into Effect Tomorrow
Zero Hedge breakdown of the law OTC Forex ban. As a side note it cracks me up me I hear Mark Levin read posts on Zero Hedge by Tyler Durden on his radio show. I am guessing Mark has never seen "Fight Club" and has no idea who Tyler Durden is.
http://www.zerohedge.com/article/trading-over-counter-gold-and-silver-be-illegal-beginning-july-15
Edited on July 15, 2011 at 3:16amDec '10
Re: Dodd-Frank Ban on Trade of Precious Metals to Go Into Effect Tomorrow
Those guys on Zero Hedge crack me up sometimes.
Any time I want to be reminded that I'm not the most pessimistic and/or crazy person on the planet, I go read the comments there.
"Zero Hedge - All DOOM!, All The Time, Baby."
Edited on July 15, 2011 at 4:07amSep '10
Re: Dodd-Frank Ban on Trade of Precious Metals to Go Into Effect Tomorrow
Well, the ZH viewpoints and information are a lot more realistic than the government mouthpiece called CNBC.
"Zero Hedge - All DOOM!, All The Time, Baby." · Jul 14 at 7:06pm
Edited on Jul 14 at 07:07 pm
Aug '10
Re: Dodd-Frank Ban on Trade of Precious Metals to Go Into Effect Tomorrow
Otto Maddox: Well, the ZH viewpoints and information are a lot more realistic than the government mouthpiece called CNBC.
"Zero Hedge - All DOOM!, All The Time, Baby." · Jul 14 at 7:06pm
Edited on Jul 14 at 07:07 pm
Jul 14 at 8:47pm
ZH is rational once you have visited Max Keiser, Lew Rockwell and Alex Jones webpages or watched Zeitgeist the movies.. They are truly crazy.
Dec '10
Re: Dodd-Frank Ban on Trade of Precious Metals to Go Into Effect Tomorrow
Otto Maddox: Well, the ZH viewpoints and information are a lot more realistic than the government mouthpiece called CNBC.
Jul 14 at 8:47pm
Didn't mean to imply that they weren't, but rather to point out that if ever I feel like I'm maybe being a tad too down in the mouth about where things are heading, a quick perusal of Zero Hedge makes my outlook seem positively rosy by comparison, and thus my confidence is restored.
The wonderful thing about being an extreme pessimist is that surprises are always better than you expected.