Gold & Gold Stock Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold & Gold Stock Analysis

GLD 414.48

+0.7%

Jan 9 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Tommaso	10/19/2009 1:36:31 PM
	Read Replies (2) of 29622

I would like to hear from someone who understands what the effect of this might be on the gold market. To me, it looks like it would add volatility to trading of gold and gold futures. If the physical gold is used as margin to buy or sell gold futures, the fluctation of the value of the collateral (the physical gold) could both enable speculation and lead to squeezes and margin calls. I mean, if a person holds contracts, and the price of gold sinks, he could be forced to sell sooner than if his margin deposit was in dollars. The situation also could affect the value of the dollar and would involve the value of the dollar. I can't see that any of this threatens anyone who owns bullion, ETFs or miners outright or in a very well-margined position. It could lead to some spectacular gyrations, however, depending on how much margin is put up in bullion. zerohedge.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next