Dodd-Frank Bill Outlaws Sale of Gold/Silver As Of July 15 2011?

Dodd-Frank Bill Outlaws Sale of Gold/Silver As Of July 15 2011?

As a result of 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 July 15, 2011.

In conjunction with this new regulation Forex.com announced they must discontinue metals trading for US residents on Friday, July 15, 2011 at 5pm EDT. As a result, all open metals positions must be closed b;y this time or they will be automatically liquidated.

As of today, this warning has only come from Forex.com. It remains to be seen if and how many other dealers inform their customers that trading gold and silver over the counter will 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.”

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.

What Does This Mean For You?

It’s no secret that individuals accumulate bullion to personally insure and insulate their wealth from the fractional-reserve piracy of modern banking. One of the best ways to do this that I’ve seen is instead of having paper “savings accounts” where you give your money to bankers and then suffer the economy of currency dilution, you could instead own a “gold savings account”, which is 100% immune to the depravity of bankers.

This can be accomplished through KB Edetmetall, a “private” global currency exchange system. The important note of the day is that the Dodd-Frank bill does not affect Karatbars.

From the desk of Joe N. (Karatbars Partner):

“It appears that the Spot price purchase of physical bullion, for delivery, is exempt from this bill.

The Dodd-Frank Bill appears to be focused on “Paper” Silver and “Paper” Gold. NOT physical Gold and Silver.

It appears that the focus is on:

* Controls and limitations for traders NOT savers.
* Control and manipulation of gold/silver prices to ensure the, paper derivative, ponzi scheme will survive another few months.
* Controlling hedge fund buying on margin (borrowed money) futures and options trading (ie: Forex). 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.”

Concerning Spot Commodities (Metals)
There is an exemption for commodities which are actually delivered within 28 days.
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.

I see this Dodd-Frank  Bill as a tremendous opportunity for Karatbars here in the USA. The Karatbars Savings Plan – gives people an opportunity to acquire bullion by exchanging fiat paper currency for physical bullion for immediate delivery. This complies with the Dodd-Frank Bill. We take immediate delivery to our home or business or take immediate delivery to a storage facility.”

The Dodd-Frank bill has more to do with controlling big players (licences). People are getting out of (all paper) turning to physical assets.

Another interesting perspective and comment from Andy M. (Karatbars Partner):

“Spot prices are exempt from this bill and its focus is on control and manipulation of gold/silver prices to ensure the ponzi scheme will survive. They must control the leverage and peer into the black market to truly assess their next steps. This talk about manipulating paper even more than it is now affects me ZERO. I hold natural physical. I will keep buying natures’ physical. The ponzi is falling apart, and if the 2 year rate is capped as rumors suggest, then this action is another reason to force big players to play by the big bankers rules in an effort to maintain price fixing going forward. They bought themselves another few months. Capital controls, the Ponzi can’t stand on it’s own any longer, it needs to be fully backed by law. Just speculating at this point. I don’t think we know the extent of the repercussions as of yet.

I am a little surprised that people were not screaming about ‘currency controls’ which might be a little more to the point that talk about prohibiting the trading in gold, oil, and silver.

For the most part it seems like much ado about nothing with regard to gold and silver and oil etc., but its good for clicks, and it helps to cheer up those sitting in depreciating paper on the sidelines who have missed the commodity bull markets.

Gold money was not private property in the 1930’s, it was an instrument of the state, and subject to the state’s disposal. That is not the case now.

Secure your future, secure your position in Karatbars. Accounts are free to set up with no fees, obligations ever. For more information and open your free gold-backed savings account today, Click Here.

The Dodd-Frank Bill and what’s happening with currency debasing make Karatbars the right solution at the right time join for free and be on top benefiting from calamity.

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Be economically safe,

Nicole Peterson

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6 Responses to “Dodd-Frank Bill Outlaws Sale of Gold/Silver As Of July 15 2011?”

  1. April Gardner Says:

    Could Forex’s decision to liquidate accounts also stem from the fact that forex traders are required to take a new examination and additional stricter licensing rules will be in place?

    Reply

    • Nicole Says:

      Hi April,

      Thanks for your comment and insight. Yes, I believe this appears to be the case. More regulations and manipulation being enforced by the government. They are in trouble and know it.

      Reply

  2. Stan Augustus Says:

    Nicole: I have tried to decipher HR41473 (Dodd-Frank) as it pertains to currency sales/purchases. What happens if you buy a foreign currency (I have Iraqi dinar, others have Vietnamese dong) betting on the currency to revalue. Some say the rules that apply to gold/silver would also apply to currencies. Do you have any insight into this. The whole 41473 just came to my attention today. If I take physical possession before July 15, are we exempt….etc,. etc. Anything you can share would be appreciated.

    Reply

    • Nicole Says:

      Hi Stan,

      The Dodd-Frank bill pertains exclusively to paper investments, not physical bullion. It affects currencies more so than gold, silver and oil. It’s about the governments need to control and manipulate gold and silver prices and control and protect the fiat currencies of the world.

      Currencies will take a beating on a world-wide scale. We are headed for a global economic collapse. The worst the world has ever seen.

      There are ways to protect yourself, but we all have to take the first step and educate ourselves.

      Reply

  3. Dave B. Says:

    This may be a good thing for individual citizens holding physical gold and silver. Once the paper gold and silver are gone then it will be impossible for banks such as morgan chase to short massive silver paper positions and manipulate the markets. The price of silver and gold can now move way up to where it should be. At least I hope this is the case. It is hard to know what they are truly up to and hard to believe they are doing anything that will help the little guy. Suspicious underneath but seems good on the surface. Could be a path to no one owning gold or silver is being paved.

    Reply

    • Nicole Says:

      Hi Dave,

      Yes, I agree with you and the time is almost coming to a close where the governments and banks can continue their manipulation. It can’t continue for much longer and when that time comes in the next 6-36 months, those that own true money will survive the economic depression. Gold is not an investment, it is not a commodity, it is money. Gold is useful in economic forecasting and preserves purchasing power over long periods of time. For example, the price of crude oil in terms of gold is unchanged from 60 years ago.

      Everyone should start protecting their wealth with gold. If we don’t take care of this ourselves, no one else will. When you buy gold, you are simply exchanging one form of money, the national currency, for another form of money, gold. This is the only way we can protect ourselves from inflation, a bank default, capital controls and other destructive events that are harmful to our purchasing power.

      This is why I believe KB Gold is such a great alternative. It allows you to open an account free of charge and own a real tangible asset. Gold has always been money and always will be… the bankers and the government know this. Gold does not have counterparty risk and preserves purchasing power over long periods of time. Gold is sound money, which everybody should be saving.

      KB offers everyone a gold-backed savings account… I have mine! :)

      Thanks for your perspective Dave. You understand what’s happening with the economy and the banks.

      Reply


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