# Gold Trading...........prohibited



## jj7957 (Jun 19, 2011)

Can this be true? And if so, would this apply all areas of "over the counter trading"?



From: FOREX.com <[email protected]>
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


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## Oz (Jun 19, 2011)

Well you caught my attention. I did not think that Forex traded in physical metals though. I would like to hear more detail.


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## qst42know (Jun 19, 2011)

Was this an email notice? Perhaps a scam of some sort?

Their web site doesn't include this warning?

http://www.forex.com/trade-metals.html


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## Claudie (Jun 19, 2011)

You got my attention also.
A search on google.com returned several results: http://www.google.com/search?q=Subject%3A+Important+Account+Notice+Re%3A+Metals+Trading&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-USfficial&client=firefox-a


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## eeTHr (Jun 19, 2011)

Those links say it's only for "paper contracts," not the physical stuff.

It looks like it is a way for the "big boys" to control the price of silver. They lower it down without worrying about "common folks" buying it all up at the lower prices. Since the paper is unlimited, they can trade it lower all they want. Then buy up all the physical at the lower prices resulting from the lower spot. But that could result in two different prices, one for spot and one for physical.

They would need to outlaw the physical stuff, to pull it off. They seem to be trying to go for "All plastic, all electronic, all traceable, all cancelable, all the time."

:idea:


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## Irons (Jun 19, 2011)

It prohibits paper transactions where there is no actual delivery of commodities. Entities and people that buy contracts for physical delivery are not affected very much.
this should reign in the speculators that have been flipping contracts among themselves to drive up the price of food, oil and other commodities.

It's not specifically for Precious Metals.


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## Militoy (Jun 19, 2011)

Irons said:


> It prohibits paper transactions where there is no actual delivery of commodities. Entities and people that buy contracts for physical delivery are not affected very much.
> this should reign in the speculators that have been flipping contracts among themselves to drive up the price of food, oil and other commodities.
> 
> It's not specifically for Precious Metals.



How does this effect small customers of companies like BullionVault - that "take legal possession" of gold bullion in quantities smaller than Good Delivery bars - but don't take actual physical delivery - in order to preserve the value that the vaulted Good Delivery bars guarantee? This isn't hedge or margin investing - just a way for a small investor to get close to the Good Delivery buy/sell margins.

BTW - I like your Gabby Hayes icon, daggnabbit!


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## eeTHr (Jun 19, 2011)

Irons said:


> It's not specifically for Precious Metals.




That's good to hear---I think. I guess I read that stuff too fast, and skipped a little.

I've heard from a few different places that the only reason that oil went above $50.00 a barrel was because of the paper speculating. And, since everything, and everybody, must be transported, when it goes high, it sucks money out of everybody everywhere, and for no practical reason.


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## philddreamer (Jun 19, 2011)

All the "big boys" want from "us" is, to trust in their paper. 

One thing I've learned, thanks to this great forum, is that: "Paper money eventually returns to its intrinsic value --- zero." Voltaire (1694-1778)


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