Trading of over-the-counter gold & silver to soon become illegal

[rambone]

Maybe someone can shed some more light on this. Zerohedge.com is saying that in compliance with the Dodd-Frank Act, soon it will be illegal to trade precious metals over the counter. The date of enactment is 7/15/2011.



Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15

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.

 

[Kutnupe14]

Now that's pretty ridiculous.

Edit: looked it up, seems like an over-reaction.

 

[ATOMonkey]

I have come to expect such things from Frank and Dodd. Idiots. They need to quit trying to save people from themselves.

 

[Stschil]

I believe Zerohedge is reporting that a private company Forex.com is interpreting the law that way and is positioning itself away from it.

I believe, however, that the new law is targeted at paper contracts on precious metals in an attempt to stem the tide of the all the speculation buying as most of the sellers of these contracts are profiting big big money and never delivering the actual metals the contracts are based on because they don't actually have them to deliver.

I do not the the specific numbers involved but the amount of silver contracted to be sold by houses like JP Morgan/Chase in their SLV stock far outreaches the amount actual physical silver that is available to be had in the entire world. They have been accused of monkeying around with the prices of silver in connection with COMEX in order to keep prices lower so they can satisfy the contracts where the physical delivery is demanded as well as using strong arm tatics to forces clients to take a cash buyout when they were unable to deliver. Investigations are ongoing into this.

 

[ATOMonkey]

Exactly, it has to do with buying commodities on margin, and in all honesty, I believe this law stemmed from oil speculation.

It's just intended to keep the day traders out from what I can read. Any "authorized" or "approved" person or entity can still buy and sell on margin.

Still dumb, but not an FDR confiscation of gold and silver. Not yet anyway.