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Steadfast
23rd June 2011, 12:14
It seems gold and silver trading will be illegal after July 15.

Is this correct?

I see quotes similar to this:
"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. "

I also see references to Executive Order 6102, part 2.

does this mean owning gold and silver will soon be illegal?
or are Pm ETF's dyeing on July 15th??!

Agentum
23rd June 2011, 12:30
It seems gold and silver trading will be illegal after July 15.

Is this correct?

I see quotes similar to this:
"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. "

I also see references to Executive Order 6102, part 2.

does this mean owning gold and silver will soon be illegal?
or are Pm ETF's dyeing on July 15th??!

Precious metals bull Dan Norcini says this story has been exagerated:


I have fielded quite a bit of emails from people scared out of their minds because of a rash post over at a widely read website which tends to post first and think later. That is the problem with this Wild West of the Internet - too many are interested in "first scoops" and not in arriving at solid conclusions based on analysis.

http://traderdannorcini.blogspot.com/2011/06/impact-from-dodd-frank.html

fltacoma
23rd June 2011, 12:45
I have heard (and im not trying to spread rumors or anything like that) that the Dodd-Frank Act is 2300 pages long? I think many people dont know what the Act is about. Some say that it might be illegal to trade OTC precious metals, and some say that it deals with overseas exchanges. Does anyone really know what the Act is about?

What is Truth?
23rd June 2011, 13:31
Precious metals bull Dan Norcini says this story has been exagerated:



http://traderdannorcini.blogspot.com/2011/06/impact-from-dodd-frank.html

Yet, who is going to listen to him when paranoid speculation and rumors are so much more fun to read?

Ardent Listener
23rd June 2011, 13:54
If they closed the PM markets all hell would break out for sure. It is not going to happen.

What is Truth?
23rd June 2011, 14:20
If they closed the PM markets all hell would break out for sure. It is not going to happen.

It never does, but every so often we hear that it is coming.

Ardent Listener
23rd June 2011, 14:35
Do not think that we are not being manipulated by certain pro precious metal sites too. As the article states, higher ratings mean more advertising dollars.

Steadfast
23rd June 2011, 16:14
I think folks are completely skipping the "over the counter" part of the statement.
"regulation prohibiting US residents from trading over the counter precious metals, including gold and silver"

Normally "over the counter" means stocks, bonds, other debt securities. It normally doesn't mean physical metals.
Some Forex trading (some of which have been shut down for trading in imaginary gold), some other stock investments offered by private firms will be affected.

I don’t think that "over the counter" means "over my LCS's counter or my personal stash (assuming I even have one after "that last boating accident" ;) ) So I don’t think this affects little jimmy's silver coin collections either. I assume it won't impact my ability to buy silver coins today or next week or ten weeks from now.

I believe, and am hopeful that, it shuts down the shady "over the counter" minor paper silver vendors. I hope that it will end the big bankster's Paper Silver racket too... I am just not sure what the writers of the bill believed was the Definition of "over the counter".
And, there lies "The Rub" for me.
The bill has some VERY nebulous writing!


Anyways...
Definition of "over the counter" is at this link:
http://www.investopedia.com/terms/o/otc.asp#axzz1Q7UsubV5

Matthew Shelley
23rd June 2011, 16:26
It seems gold and silver trading will be illegal after July 15.
Is this correct?
I see quotes similar to this:
"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. "
I also see references to Executive Order 6102, part 2.
does this mean owning gold and silver will soon be illegal?
or are Pm ETF's dyeing on July 15th??!

I am still researching this. At the moment, this story mainly comes from an announcement from a single retail metals dealer. It would be a pretty huge deal if all those who were allowed to hold paper cash Gold and Silver in their retirement accounts had to liquidate, so I assume the CFTC understands this and would not put something like this into effect on such short notice.

SilverSpot
23rd June 2011, 16:31
That Dodd-Frank Act, if your statement is true, is crossing the line. Wait, they just spray painted "we don't give a ****" over the line and put up a wall.
I guess I'll be doing some research on the DuddFrank act this weekend.

Mizzle
23rd June 2011, 19:38
I am still researching this. At the moment, this story mainly comes from an announcement from a single retail metals dealer. It would be a pretty huge deal if all those who were allowed to hold paper cash Gold and Silver in their retirement accounts had to liquidate, so I assume the CFTC understands this and would not put something like this into effect on such short notice.

Interesting point. Makes me think, are there any major funds that hold a portion of their assets in these types of securities?

gottago
23rd June 2011, 20:58
Interesting point. Makes me think, are there any major funds that hold a portion of their assets in these types of securities?

If my memory serves me right, this was originally an e-mail that was sent out from FOREX saying that they no longer can trade bullion OTC, correct???

Perhaps they are trying to prevent people from investing all of their money in FOREX and then hopping on a plane and leaving the country. Once they are in a foreign country and redeem their investment in bullion [a non-traceable asset] they can disappear and the Fed couldn't do chit.

Could this be the purpose of this???

mrbungle
24th June 2011, 08:58
if they had to liquidate the silver and gold paper ETF's , wouldn't the spot price drop like a rock?

Matthew Shelley
24th June 2011, 10:12
Interesting point. Makes me think, are there any major funds that hold a portion of their assets in these types of securities?

Well, there are major 'approved fiduciaries' that manage IRAs and 401Ks who would have toes in this pond, so I guess the answer would be "yes". I'm sure there are others as well.

Matthew Shelley
24th June 2011, 10:13
if they had to liquidate the silver and gold paper ETF's , wouldn't the spot price drop like a rock?

The ETFs would not be affected. They are already under SEC jurisdiction.

Also, their assets are 'held' and would not be subject to any delivery or 28 day rules.