just out from send tray
From: J
Sent: Sun, June 19, 2011 9:23:49 AM
Subject: Re: Comments - Week of June 20
remx is not down
remx is merely energetic, and just "up" in the opposite direction so as to facilitate accumulation by the faithful - at such moments it is perhaps best to flip the monitor upside down to calm the urge to betray the faith and follow through with weakened conviction
the same faithful may well be blessed and rewarded with a "up in the opposite direction" gold, silver, gdx, paas, and ... what else? oh, yes, fcx, clf, bekaert, and of course platinum
remx shall be fine, higher in a year's time than now, per destiny and in alignment with what the usa and the prc govts want.
the simple truth is that the tidal energy is ebbing, and the force is going in the away direction
these are times when we are tested, to be tried by fire and convicted by losses, and when precisely we must fall back to our underlying and strong premise
such be way to be sure whether we are girly men, shrimp, or big swinging willies
the fundamental questions are as below, i believe, in order of priority:
(i) will interest rate stay negative or go even more negative where no negative had gone before?
(ii) will the sorry majority rule the sorrier minority?
(iii) will deformed democratic burning cities turn out to be just precursors to decrepit socialist hell-doms?
the second order questions are just that, second order, and they be:
(i) will desolation be greece? - just a question of time the greeks get shipping debt called and merchant fleet taken away
(ii) will the minnow greece on the kitchen counter long keep attention away from the putrid whale sandwich on the living room carpet that be california? - just a question of time that the kittens discover the whale sanwich
(iii) will euro, china, japan and any number of other distractions hold together? - germany will be fine, china maybe, japan not relevant and never meant to be relevant
underlying it all, there be the issue of gold:
(i) was sir alan greensputin the maestro correct when he wrote this article lewrockwell.com ("gold n economic freedom") before he turned against the faith
(ii) if the maestro was correct, then what should we conclude w/r to china gold reform over the past decade Message 25916530
(iii) and what we then must conclude w/r to what be happening to the gold trade in usa?
the correct premise is not just important, but everything.
whatever else may happen, we are fated to learn much more than any university can teach us.
From: W
Sent: Sun, June 19, 2011 8:18:07 AM
Subject: RE: Comments - Week of June 20
So why is etf of rare earths, remx, down?
From: B
Sent: Saturday, June 18, 2011 1:37 PM
Subject: Re: Comments - Week of June 20
Rare Earths:
bloomberg.com
On Sat, Jun 18, 2011 at 2:22 PM, B wrote:
This appears to be Jessies take on same:
jessescrossroadscafe.blogspot.com
US Seeks to Curtail OTC Highly Leveraged Retail Trading in Paper Commodities and Currencies
As part of the reform of derivatives, Dodd-Frank is seeking to prohibit Over the Counter (meaning non-exchange) trading of commodities at leverage of greater than 10:1.
The off exchange traders, particularly those trading in currencies, had expanded their markets into various commodities, offering non-product backed paper trading at very high rates of leverage.
The Congress and CFTC started taking a dim view of this sort of activity, and has begun to enact tentative prohibition of it as of July 15.
This does not curtail any on-exchange trading, such as the CME, or any ETFs, or any other product with a leverage of less than 10:1 or actually involving substantial physical backing or intended delivery of product within 28 days.
I have not quite gotten the time to assess the impact if any this might have on retail trading in forex itself. I have included a few forex related documents below. I have relatives visiting this weekend to celebrate my wife's recovery from her recent illness.
This is my reading of the situation, subject to additional information. I am trying to obtain the contracts detail to understand customer rights, if any, in obtaining delivery of spot commodities from fellows like Forex.com.
There *could* be something to this if there is in fact a means to obtain delivery in some reasonable way. But otherwise it looks like a crackdown on speculation on non-currency products and push to move them to exchanges for all but the 'exempt few' who manipulate markets.
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 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.
Forex.com reportedly sent out this notice to customers on Friday.
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxx
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
Here is one of the relevant products offered by Forex.com:
How Leverage for Spot Gold Works
Leverage for spot gold trading is set at 100:1. This means that for every $1 you have in your account balance, you have $100 in buying and selling power for gold trading. As a result, leverage increase a client's buying and selling power and enables clients to participate in a market that may otherwise be cost prohibitive. Keep in mind that increasing leverage increases risk.
This is the long and short of it. If you want to trade paper, there are still plenty of ways to do it. But you might not be able to do it in the US unless you are using an exchange with structured counter party risk and contracts, and regulated leverage.
Here are some related documents, that interestingly enough deal with the Forex aspects of this ruling.
CFTC: Final Retail Foreign Exchange Rules
Hedge Funds Trading FX May Be Caught Out By Dodd-Frank
Dodd-Frank Dispatch: Retail Forex Transactions Rule for National Banks
Time Running Out On Retail Currency Business
On Sat, Jun 18, 2011 at 12:48 PM, B wrote:
Anyone have any comment on potential effect of this:
seekingalpha.com
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.
More commentary here:
forums.silverstackers.com
More commentary:
Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and 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.
The act itself can be found here:
gpo.gov |
