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Gold, Gold & Silver BAN, Obama, Silver

Warning! Obama Law Makers Make Gold & Silver Bullion trading is Illegal, Peaking the interest in Rare Coins


Warning!…

Gold & Silver BAN by Federal
Government

ALL Trading Outlawed After July 15, 2011

This is NOT a
Conspiracy Theory!

This is NOW LAW!

This is all good new to the Rare Gold & Silver Coin Market.   There are many people aout there that see this as the first step in a slippery slope of laws the Obama administration want to enact.  The end of the slippery slope ends in a  to revisiting of the Great Depression, the action of FDR in 1933 with gold confiscation, and high demanded for the non-bullion rare gold and silver coins.

The short term effects will pour more people in to the physical gold and silver market place driving the prices up.  If I were you I would look to get pre-1933 gold and silver Now!

Read the New Amendments below>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

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

So far we have only received this warning from Forex.com. We are waiting to  see which other dealers inform their customers that trading gold and silver over  the counter will soon be illegal.

It appears that Forex.com’s interpretation of the law stems primarily from  Section 742(a) of the Dodd-Frank act which  “prohibits any person [which again includes companies]from entering into, or  offering to enter into, 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.”

Some prehistory from Hedge  Fund Law Blog:

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”) has  changed a number of laws in all of the securities acts including the Commodity  Exchange Act.  Two specific changes deal with certain transactions in  commodities on the spot market.  Specifically, Section 742 of the Act deals with  retail commodity transactions.  In this section, the text of the Commodity  Exchange Act is amended to include new Section 2(c)(2)(D) (dealing with retail  commodity transactions) and new Section 2(c)(2)(E) (prohibiting trading in spot  forex with retail investors unless the trader is subject to regulations by a  Federal regulatory agency, i.e. CFTC, SEC, etc.).  According to a congressional rulemaking spreadsheet, these are effective 180  days from the date of enactment.
We provide an overview of the new sections  and have reprinted them in full below.
New CEA Section 2(c)(2)(D) –  Concerning Spot Commodities (Metals)
The central import of new CEA  Section 2(c)(2)(D) is to broaden the CFTC’s power with respect to retail  commodity transactions.  Essentially any spot commodities transaction (i.e. spot  metals) will be subject to CFTC jurisdiction and rulemaking authority.  There is  an exemption for commodities which are actually delivered within 28 days.  While  the CFTC wanted an exemption in which commodities would need to be delivered  within 2 days, various coin collectors were able to lobby congress for a longer  delivery period (see here).
It is likely we will see the CFTC propose  regulations under this new section and we will keep you updated on any  regulatory pronouncements with respect to this new section.
New CEA  Section 2(c)(2)(E) – Concerning Spot Forex
The central import of new  CEA Section 2(c)(2)(E) is to regulate the spot forex markets.  While the section  requires the CFTC to finalize regulations with respect to spot forex (which were  proposed earlier in January), it also, interestingly, provides  oversight of the  markets to other federal regulatory agencies such as the CFTC.  This means that  in the future, different market participants may be subject to different  regulatory regimes with respect to trading in same underlying instruments.  A  Wall Street Journal article discusses the impact of this with respect to firms  which engage in other activities in addition to retail forex transactions.  The  CFTC’s proposed rules establish certain compliance parameters for retail forex  transactions, requires registration of retail  forex managers and requires such managers to pass a new regulatory exam  called the Series 34 exam.  We do not yet know whether the other  regulatory agencies will adopt rules similar to the CFTC or if they will write  rules from scratch.

Next, from Henderson & Lyman:

The prohibition of Section 742(a) does not apply, however, if such a  transaction results in actual delivery within 28 days, or creates an enforceable  obligation to deliver between a seller and a buyer that have the ability to  deliver, and accept delivery of, the commodity in connection with their lines of  business. This may be problematic as in most spot metals trading virtually all  contracts fail to meet these requirements. As a result, although the  courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to  have a significantly negative impact on the OTC cash precious metals industry.  Here too, it is essential that those who offer to be a counterparty to OTC  metals transactions seek professional help to discuss possible operational and  regulatory contingency plans.

The actual rule language  exempts a transaction if it “results in actual delivery within 28 days  or such other period as the Commission may determine by rule or  regulation based upon the longer period as the Commission may determine by rule  or regulation based upon the typical commercial practice in cash or spot markets  for the commodity involved;” Alas, the commission has decided not to  intervene and keep the exemption status window so small as to affect virtually  all exchanges which transact in the gold and silver spot market.

More  here:

Elimination of OTC Forex

Effective 90 days from its inception, the Dodd-Frank Act bans most retail OTC  forex transactions. Section 742(c) of the Act states as follows:

…A person [which includes companies] shall not offer to, or  enter into with, a person that is not an eligible contract participant, any  agreement, contract, or transaction in foreign currency except pursuant to a  rule or regulation of a Federal regulatory agency allowing the agreement,  contract, or transaction under such terms and conditions as the Federal  regulatory agency shall prescribe…

This provision will not come into effect, however, if the CFTC or another  eligible federal body issues guidelines relating to the regulation of foreign  currency within 90 days of its enactment. Registrants and the public are  currently being encouraged by the CFTC to provide insight into how the Act  should be enforced. See CFTC Rulemakings regarding OTC Derivatives  located at the following website address, under Section XX – Foreign Currency (Retail  Off Exchange). It is essential that OTC forex participants seek professional  help to discuss possible operational and regulatory contingency plans.

Elimination of OTC Metals

As for OTC precious metals such as gold or silver, Section 742(a) of the Act  prohibits any person [which again includes companies]from entering into, or  offering to enter into, 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. This provision intends to expand the narrow so  called “Zelener fix” in the Farm Bill previously ratified by congress  in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving  rolling spot transactions and/or other leveraged forex transactions without the  need to prove that they are futures contracts. The Dodd-Frank Act now expands  this authority to include virtually all retail cash commodity market products  that involve leverage or margin – in other words OTC precious metals.

The prohibition of Section 742(a) does not apply, however, if such a  transaction results in actual delivery within 28 days, or creates an enforceable  obligation to deliver between a seller and a buyer that have the ability to  deliver, and accept delivery of, the commodity in connection with their lines of  business. This may be problematic as in most spot metals trading virtually all  contracts fail to meet these requirements. As a result, although the courts’  interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a  significantly negative impact on the OTC cash precious metals industry. Here  too, it is essential that those who offer to be a counterparty to OTC metals  transactions seek professional help to discuss possible operational and  regulatory contingency plans.

Small Pool Exemption Eliminated

Pursuant to Section 403 of Act, the “privateadviser” exemption,  namelySection 203(b)(3) of the Investment Advisers Act of 1940 (“Advisers  Act”), will be eliminated within one year of the Act’s effective date (July  21, 2011). Historically, many unregistered U.S. fund managers had relied on  this exemption to avoid registration where they:

(1) had fewer than 15 clients in the past 12 months;

(2) do not hold themselves out generally to the public as investment  advisers; and

(3) do not act as investment advisers to a registered investment company or  business development company.

At present, advisers can treat the unregistered funds that they advise,  rather than the investors in those funds, as their clients for purposes of this  exemption. A common practice has thus evolved whereby certain advisers manage up  to 14 unregistered funds without having to register under the Advisers Act.  Accordingly, the removal of this exemption represents a significant shift in the  regulatory landscape, as this practice will no longer be allowable in  approximately one year.

Also an important consideration, the Dodd-Frank Act mandates new federal  registration and regulation thresholds based on the amount of assets a manager  has under management (“AUM”). Although not yet underway, it is possible that  various states may enact legislation designed to create a similar registration  framework for managers whose AUM fall beneath the new federal levels.

Accredited Investor Qualifications

Section 413(a) of the Act alters the financial qualifications of who can be  considered an accredited investor, and thus a qualified as eligible participant  (“QEP”). Specifically, the revised accredited investor standard includes only  the following types of individuals:

1) A natural person whose individual net worth, or joint net worth with  spouse, is at least $1,000,000, excluding the value of such investor’s  primary residence;

2) A natural person who had individual income in excess of $200,000 in each  of the two most recent years or joint income with spouse in excess of $300,000  in each of those years and a reasonable expectation of reaching the same income  level in the current year; or

3) A director, executive officer, or general partner of the issuer of the  securities being offered or sold, or a director, executive officer, or general  partner of a general partner of that issuer.

Based on this language, it is important to note that the revised accredited  investor standard only applies to new investors and does not cover existing  investors. However, additional subscriptions from existing investors are  generally treated as requiring confirmation of continuing investor  eligibility.

On July 27th, 2010, the SEC provided additional clarity regarding the  valuation of an individual’s primary residence when calculating net worth. In  particular, the SEC has interpreted this provision as follows:

Section 413(a) of the Dodd-Frank Act does not define the term “value,”  nor does it address the treatment of mortgage and other indebtedness secured by  the residence for purposes of the net worth calculation…Pending implementation  of the changes to the Commission’s rules required by the Act, the related amount  of indebtedness secured by the primary residence up to its fair market value may  also be excluded. Indebtedness secured by the residence in excess of the value  of the home should be considered a liability and deducted from the investor’s  net worth.

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Discussion

10 thoughts on “Warning! Obama Law Makers Make Gold & Silver Bullion trading is Illegal, Peaking the interest in Rare Coins

  1. This looks to be restricting of paper trades and speculators not the actual purchase and deliverable hard asset of gold and silver. This would take the large banks like Chase and B of A ,that have been manipulating the market for over 2 decades .

    Posted by lovetodubli | July 1, 2011, 1:52 pm
  2. so they want all precious metals owned by ppl anywhich way possible b4 they print new money based on gold n or silver ONLY THEY WILL OWN daylight robbery yet again by our masters

    Posted by free thinker | July 7, 2011, 9:48 am
  3. Pretty sure this is about commodity trading, NOT bullion coins you’d buy from the US Mint or a coin shop. Relax. In fact the US Mint *right now* has a notice that their 2011 uncirculated Silver Eagles won’t be available until the 19th. This would make no sense if they had to legally quit selling them on the 15th.

    Posted by mike | July 12, 2011, 5:51 pm
  4. The Gold Confiscation of 1933 is the single most draconian economic act in the history of the United States!

    Posted by Chase | July 22, 2011, 5:55 pm
  5. This should be very bullish for gold and silver… well almost because it only bans retail traders and paper traders can still buy gold ETFs. But the manipulation won’t be so easy to keep price down now.

    Posted by john | July 29, 2011, 6:01 pm
  6. you have a great blog here! would you like to make some invite posts on my blog?

    Posted by Leo Merlain | February 11, 2012, 10:37 pm
  7. Great beat ! I wish to apprentice even as you amend your web site, how could i subscribe for a blog website? The account helped me a applicable deal. I have been tiny bit acquainted of this your broadcast provided vivid clear concept

    Posted by intraday trading strategies | April 4, 2012, 11:41 am

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  2. Pingback: Illegal For Americans to trade Gold & Silver? - Old Hippie's Forums - July 8, 2011

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