Scam? Real? No more gold trading in USA @ july 15th?

peet · Post by **peet** » Sun Jun 26, 2011 4:00 pm

Seeing more articles about the new USA law in Dutch magazines and they quote this email, supposedly send to forex traders. Seems they want to end gold and silver trading at July 15th?

Scam? Clever scheme?

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From: FOREX.com <info@forex.com>
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice

Important Account Notice

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

Icky · Post by **Icky** » Sun Jun 26, 2011 4:39 pm

Did some digging and it sounds like Forex is taking a very conservative interpretation of a provision in the law. The specific provision prohibits futures trading in commodities by anyone who is not an expert in that commodity:

QUOTE “…a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis.”[/quote]

It sounds like most of the precious metal trades turn out to be futures trades since they don't close within 28 days (which is the guideline laid out in the law).

Most sources say this is a "gray area'.

Viscur · Post by **Viscur** » Sun Jun 26, 2011 6:24 pm

Probably a law trying to prevent places like cash4gold from selling all the gold to china >.>

tsubaki_sanjuro · Post by **tsubaki_sanjuro** » Sun Jun 26, 2011 9:35 pm

Viscur wrote:QUOTE (Viscur @ Jun 26 2011, 07:24 PM) Probably a law trying to prevent places like cash4gold from selling all the gold to china >.>

the people behind firms like that really should be dealt with by revolutionary justice of the armed mob kind. utter vermin.

Bard · Post by **Bard** » Mon Jun 27, 2011 1:51 am

tsubaki_sanjuro wrote:QUOTE (tsubaki_sanjuro @ Jun 26 2011, 04:35 PM) the people behind firms like that really should be dealt with by revolutionary justice of the armed mob kind. utter vermin.

I feel the same way about people who do "Futures Trading", buy junk bonds, adjustable rate preferred stocks, variable rate notes, and all the other speculative crap that completely screws up our markets while making the same few handfuls of people filthy rich.

DonKarnage · Post by **DonKarnage** » Mon Jun 27, 2011 1:59 am

Sometimes a furious armed mob is the only way to get @#(! done in a timely manner

Post by **BackTrak** » Mon Jun 27, 2011 3:04 am

Unfortunatly, it's hard to pre-determine just what they are going to do. But, there will definitely be a result at the end of it.

peet · Post by **peet** » Mon Jun 27, 2011 5:48 am

After googling into this gold / silver trading law I ran into a few "tin foil hat" / shady websites that basically scream the End Of The Almighty Dollar Is Near. Foretelling DOOM and the return to the Stone Age for the US citizens. With or without relevant(ish) proof. Sometimes followed by an "secret" asset advice, basically saying trade in everything except in / with US Dollars. Buy a house on the country side, store half a year of food and basic supplies, buy a big gun and plenty ammo and sit it out.

On the other side I found some websites that say "meh, keep on going guys". USA is the World Federal Currency, and if needed we can print more truckloads filled with banknotes. Often followed by a "great asset offer" in US Dollars of course.

One relevant question I found intriguing. It basically asked how to get his life savings out of the US gov't grasp if things go sour. Something like a desperate government does desperate things. There was no real good answer.

NightRychune · Post by **NightRychune** » Mon Jun 27, 2011 6:18 am

as far as I know precious metals is a growing bubble that could potentially be very dangerous - large-scale purchases operate much the same way money does - you get a note that says you own x gold/silver, guaranteed by y bank

of course those banks guaranteeing the notes have oversold gold and silver, and should there be an actual run on said institutions (potentially triggered by an even larger scale economic crash that completely devalues a major currency enough that commodities traders look to acquire their items to guarantee their financial safety) they can't give all of their buyers their precious metals and it'll just make everything worse

Adept · Post by **Adept** » Mon Jun 27, 2011 9:51 am

tsubaki_sanjuro wrote:QUOTE (tsubaki_sanjuro @ Jun 27 2011, 12:35 AM) the people behind firms like that really should be dealt with by revolutionary justice of the armed mob kind. utter vermin.

I had to stop a relative from selling (more) gold to people like this just a few days ago. People are so easy to exploit