And now, for something completely…educational. Much ado about nothing has been making the rounds in various gold forums and gold-sci-fi sites. Why, at first blush, any unsuspecting would-be or current gold investor would think that the End had arrived. The “US gumbint forbids gold and silver trading!” Whoa. Not so fast.
Fact: Forex.com, a large retail foreign-exchange operation, on Friday told clients it will discontinue its gold and silver over-the-counter products marketed to retail investors who are U.S. residents. It asked investors to close their positions by July 15.
Fact: After July 15, commodities transactions between retail investors that are leveraged and not delivered in 28 days must be conducted in a “designated contract market,” a board of trade or exchange designated by the CFTC, according to the new rules.
Fact: The National Futures Association asked Congress for such changes, due to numerous cases of fraud in such contracts. Doing business with a futures exchange offers retail investors more protections and transparency
Total fiction: “If you had any doubts about how far the elites would go to hurt and break the backs of middle class America, this new law should provide ample evidence that truth reporters are not just making this stuff up. The only possible reason I can see for making it literally “illegal” to trade gold and silver over the counter is that trading in precious metals has been keeping millions of American households financially afloat when just about every hard asset they own, including their home mortgage, is now practically worthless.” – source Chase from Alternative News Report
Jon Nadler is a Senior Metals Analyst at Kitco Metals Inc. North America