Q. Will ownership of gold and silver be prohibited on July 15, 2011?
A. No, not for those who own physical gold and silver but it will affect US citizens who own paper gold and silver.
The Dodd-Frank Act was bought about to bring financial stability and improve accountability to the financial system. It’s just another raft of financial regulations.
FOREX.com, an online brokerage house specializing in trading fiat currencies, has determined that their US clients having XAG and XAU trades “over the counter” will need to be liquidated by July 15, 2011.
Below is a copy of the email sent to US clients by Forex.com
From: FOREX.com
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
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
This is a clear indication of why you should take physical delivery of your gold and silver. Also an indication of things to come.
This sets a worrying precedent but an inevitable one. The more people turn to the safe havens and profitability associated with precious metals the more regulations will come into place to prohibit it. Just like in the great depression when the US made physical Gold ownership illegal!
Take heed of the signs being shown to you. We can see the frequency of financial disasters increasing as fast as the price of Gold. A time is coming when we will each need to fend for ourselves against the regulation of the system. Purchase your physical Gold and Silver whilst you still can!