This page has been archived and commenting is disabled.

Another Broker Halts Trading In Gold And Silver Products

Tyler Durden's picture


CMC Markets, a broker out of Australia which offers Contracts For Difference (CFDs), has just formally joined the increasingly larger group headed by (discussed on Saturday) which is now advising customers that gold and silver trading will be prohibited in a month. Specifically, CMC has said that beginning July 29, it will no longer offer nor roll any of its existing gold and silver CFDs. What is curious is that unlike, which advised clients it is halting comparable trading on July 25 as pertains to spot OTC products (XAU and XAG), CMC's halt is impacting gold and silver futures. While we still are not confident we understand precisely what span of products is prohibited by Dodd-Frank, it appears that ever more brokers are interpreting the law loosely enough to where practically all gold and silver products will soon be removed from retail participation. Readers, however, can rest assured that the CFTC, which is urgently delaying any of the Frankendodd provisions that impair Wall Street bottom lines, will not move a finger to address or resolve this issue which will suddenly affect millions of retail investors in the US, and around the world.

From CMC Markets:

h/t Steve


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 06/19/2011 - 23:41 | 1383775 Rahm
Rahm's picture

Gold is money, and nothing else.  (and silver)

Mon, 06/20/2011 - 00:04 | 1383801 Ahmeexnal
Ahmeexnal's picture

A pathetic attempt by JPig to try to get off the hook.

This will backfire on them. Instead of a price dump, we shall witness a parabolic wall of voodoo.

While the sheeple may not even hear about this -and if they do they will just stare blankly and proceed to Mickey D's as usual- the smart money knows what's in store, and will buy with both hands.  So will central banks the world over.

And remember, it's gold AND SILVER!


And yes, rumors are correct. Silver will shortly circulate as currency in several countries.

When it does, it will be valued severalfold what the CRIMEX says it's worth today.

That means the next world reserve currency will be...SILVER!!!

Mon, 06/20/2011 - 00:20 | 1383895 Thomas
Thomas's picture

I have always wanted to see the Parabolic Wall of Voodoo.

As an aside, I have always suspected that many of these vehicles were designed to sop up gold demand into the paper market so that the physical would stay tame. If my theory is correct, that PWV you speak of might just appear now that people are forced into physical.

Mon, 06/20/2011 - 02:23 | 1384173 French Frog
French Frog's picture

I have to say this is one of those where ZH has got it completely WRONG and it has nothing to do with any Gold-related-possible-whatever.....

As part of moving to their new trading platform, CMC are stopping any monthly and quarterly rolling instruments (futures) and only offering the equivalent cash markets, like a lot of SB UK-based brokers.

This has been known for 6 months and all these instruments have been withdrawn when their current contract had expired (or is about to expire).

No more, no less

Mon, 06/20/2011 - 07:17 | 1384376 AUD
AUD's picture

CFD's are not really futures at all, there is no delivery of any commodity.

Mon, 06/20/2011 - 08:41 | 1384474 French Frog
French Frog's picture

I know; i don't trade CFD with CMC just the cash markets with their SB (Spread Bet) platform;

The point that i was trying to make is that whether it's their CFD or SB platform, they started discontinuing their rolling monthly & quaterly contracts & futures;

This is nothing to do with Gold (as ZH suggested), it's only to do with the rolling out of their new platform and they have been cancelling these instruments for a while now.

So there lol

Tue, 06/21/2011 - 02:10 | 1388047 ViewfromUnderth...
ViewfromUndertheBridge's picture

Not only is this this ZH post completely false but so is the first one extrapolating from the letter. XAU & XAG will NOT be illegal to trade for US residents come July 15.

This is the CFTC Final Rule Regarding Retail Foreign Exchange Transactions.

In short, to offer forex OTC trading platforms to US resident retail customers a company must register with the CFTC as a Retail Forex Exchange Dealer (RFED). This is a new category and requires strict reporting to increase transparency for retail clients. Information such as the number of participants who made a profit in the last quarter, any pending lawsuits and a warning if the company's remaining capital is approaching the new minimum limit, which is $20 million.

Leverage is limited to 50:1 (2% margin) for major currency pairs and 20:1 (5% margin) for others.

It looks to me as if XAU and XAG are included in the majors (50:1) on the basis that these are Oanda's margins for XAU and XAG and they are listed to be a compliant RFED. The National Futures Association can set refinements within these limits. If you do not know much about OTC forex trading and want to learn the basics the NFA offers a condescending 24 page booklet here:

To see if your OTC forex provider is a compliant RFED you can check here:

These companies would appear not to be compliant, because the CFTC is already suing them under the new rules:

Conclusion...Tyler, love your work but please lift your game.

Mon, 06/20/2011 - 07:37 | 1384393 doesmybuttlookf...
doesmybuttlookfatinthis's picture

I love Wall of Voodoo!


I feel a hot wind on my shoulder
And the touch of a world that is older
I turn the switch and check the number
I leave it on when in bed I slumber
I hear the rhythms of the music
I buy the product and never use it
I hear the talking of the DJ
Can't understand just what does he say?

I'm on a mexican radio. I'm on a Mexican - whoah - radio

I dial it in and tune the station
They talk about the U.S. inflation
I understand just a little
No comprende, it's a riddle

I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio
I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio

I wish I was in Tijuana
Eating barbequed iguana
I'd take requests on the telephone
I'm on a wavelength far from home
I feel a hot wind on my shoulder
I dial it in from south of the border
I hear the talking of the DJ
Can't understand just what does he say?

I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio
I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio

Radio radio... Radio radio... Radio radio...
I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio
I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio
Radio radio... What does he say ?

Mon, 06/20/2011 - 01:06 | 1384034 beanieville
beanieville's picture

Silver is done for.  Going to 20.

Mon, 06/20/2011 - 01:04 | 1384037 beanieville
beanieville's picture

Now that precious metals are finished, there's always bitcoins:

Mon, 06/20/2011 - 05:23 | 1384300 fiftybagger
fiftybagger's picture

Bitcoin Report Volume 8 - FLASHCRASH!


Mon, 06/20/2011 - 23:10 | 1387694 FlyPaper
FlyPaper's picture

I don't know how you came up with $20 for silver, but that could happen.  Hope it does, in fact - would be the last great buying opportunity before the inflationary spiral takes off.

ZHer's that Junked this comment - why?  If the Fed allows the economy to soften Silver will be hammered more than Gold.   I'm assuming it will also turn around when QEx starts up.

Dan Norcini has a warning out as of late last week to silver traders that silver will not hold up as well in a depressed economy due to supply-demand issues, which makes sense because of Silver's industrial use.  

This does not change the fundamental "print your way out" for the globe's central banks and governments; it just assumes that the process is not a straight line because of the constant market manipulation and intervention.

Thu, 06/23/2011 - 00:34 | 1393865 556nato
556nato's picture

Silver to 20 would be a God-send.

Mon, 06/20/2011 - 04:14 | 1384265 f16hoser
f16hoser's picture

I like the way you think mister! Buying more physical this week!

Mon, 06/20/2011 - 06:51 | 1384356 Yen Cross
Yen Cross's picture

Nice avatar Hoser!

Mon, 06/20/2011 - 07:03 | 1384361 markmotive
markmotive's picture

History repeats. We always go back to sound money. You can try to fight it, but all you do is drive the market underground.

France went through the same episode of mega-debt and currency devaluation 200 years ago:

Mon, 06/20/2011 - 02:29 | 1384175 ViewfromUnderth...
ViewfromUndertheBridge's picture save you all time & effort:

This post is completely wrong. Read the image provided...

"Please note that XAUUSD and XAGUSD (Spot Gold and Spot Silver) will still be available to trade"

This CMC decision has nothing to do with Dodd/Frank 742(a) just click-baiting by this particular Tyler.

Mon, 06/20/2011 - 04:18 | 1384268 French Frog
French Frog's picture

see my post above ... it's easier to just follow the headlines rather than do your own research, even on ZH (who occasionaly will get it wrong but that happens even to the best)

Sun, 06/19/2011 - 23:41 | 1383782 ZeroPower
ZeroPower's picture

Wow. If other brokers join this bandwagon, expect silver and gold to dump really fucking hard in preparation for the July limitations.

Sun, 06/19/2011 - 23:55 | 1383818 JW n FL
JW n FL's picture

I am sooooooooooo hoping that the price falls! I will back up the truck.. I buy on down days.. but I really am having day dreams that the scary, pussy types get out and that I can pick up some cheap metal! BRING IT!!!


P.S. I doubt that I am the only one hoping that the price goes down in front of QE - 3 / Infintity!

Sun, 06/19/2011 - 23:56 | 1383824 mcguire
mcguire's picture

i agree, this is good news for physical buyers... 

Mon, 06/20/2011 - 00:04 | 1383838 Quixotic_Not
Quixotic_Not's picture

There is -0- doubt that the print & mint funny money politeers will heed the insane dictate of the banksters and continue The Trend...

How much will an ounce of Ag be when minimum wage is $15 an hour? 25?

Mon, 06/20/2011 - 01:04 | 1384036 AgShaman
AgShaman's picture

Good question...but I'm glad i never had to care about it.

I think minimum wage has jumped 50% in the last 14 years.

That would be one tool to teach the serfs how they are being plugged in the 6 'o' clock without any lube....should they choose to compare the minimum wage to how the prices of PM's have moved over the same period...or what the expansion of M3 has looked like....oh wait, they don't put out those numbers anymore...I wonder why?

Mon, 06/20/2011 - 01:18 | 1384057 HungrySeagull
HungrySeagull's picture

The fuking minimum wage only jumped shit in 30 damn years.

40 years ago A hershey bar was .15 cents AFTER they quit trying to make the ever shrinking .05 choclate bar. Now we fugging pay like 1.20 for said hershey bar.


3.35 to 5.25 then agonizing to 7.25 like a obese sub shop owner trying to maintain his standard of living behind the emaciated staff trying to live on crumbs while working.


Proper wages should be about 30.00 an hour. Or else reset it all.

Oh wait. it's been 30.00 for decades under Union Power.

That was before Union saw car factory go bye bye overseas or south of the border.

Oh wait. Commodies provide a base price, and start figuring out what it takes to chop wood to build a house.

Mon, 06/20/2011 - 01:28 | 1384072 AgShaman
AgShaman's picture

So I guess I had it wrong....since 1997 it's been less than 50% increase?

Minimum wage slaves are the same fools at the "Gas 'N' Grub"....purchasing a 2 dollar energy drink and a 3oz. bag of chips/air for 99 cents...wait, $1.09....transaction made via plastic of course.

They will not require directions to the's been programmed within a homing device in a pidgeon.

Mon, 06/20/2011 - 02:16 | 1384156 HungrySeagull
HungrySeagull's picture

Oh, before I forget.... when I even learned about the Gold and Silver way back when it was 200 ounce Gold and about.. eh.. 6.00 silver. I think London had set the price each day. One had to actually wait (Not much of any or no internet back then) to get spot price in the paper.

Shoulda coulda woulda. UGH! No.

I am catching up quickly.

Mon, 06/20/2011 - 12:38 | 1385114 NCFREEDOM
NCFREEDOM's picture

Of course 40 years ago .15 was a silver dime and a nickel. Todays equivelent is $2.63, which would be about right since a candy bar 40 years ago was roughly twice as big. So in the right privately owed convenience store I should be able to buy the same amount of candy.....with a silver dime and nickel.......hmmmmm

Mon, 06/20/2011 - 00:08 | 1383862 DoChenRollingBearing
DoChenRollingBearing's picture

See you in line over at the coin shop JW!

Mon, 06/20/2011 - 00:09 | 1383882 HungrySeagull
HungrySeagull's picture

Ya know, there is quite a few of us lined up in front of you and the ATM machine at night very close to touching trying to impatiently wait thier turn at the silver or gold metals dealer...

Mon, 06/20/2011 - 00:06 | 1383866 Captain Benny
Captain Benny's picture

Thats what we're hoping for.  I've sidelined a few paychecks to be allocated towards the shiny stuff next month!

Sun, 06/19/2011 - 23:49 | 1383784 Debt Rolling
Debt Rolling's picture

The CBOT will lose clients. The HKMEX will gain them.

Pretty bad move from the US at a time where tax revenue is falling, imo. 

That aside, this is big. It simply means the end of precious metals retail trading. 

Sun, 06/19/2011 - 23:51 | 1383800 Orly
Orly's picture

They'll just make it illegal for US citizens to have foreign accounts with foreign brokers.  That's what they did with 4X after they changed the leverage, so the only leverage the home-gamer 4X trader can get in the US is 50:1.

It'll prolly be the same way here, only illegal for the US day-trader anywhere in the world to trade paper gold and silver.  Wouldn't surprise me if they limited access to oil, copper, etc. in the future.

The markets can be affected by too much money in the system, so this would remove a lot of the incoming liquidity, while also stabilising the price.  I just hope they don't get that idea for retail 4X traders.

Mon, 06/20/2011 - 00:01 | 1383825 Ahmeexnal
Ahmeexnal's picture

Your illegal alien gardener/busboy/cook/maid/nanny/plumber/construction worker/carpenter/fruitpicker is your friend. If you've treated him/her well, you have an elligible PM trader who will help you transition safely to the other side.

Mon, 06/20/2011 - 03:01 | 1384208 Oracle of Kypseli
Oracle of Kypseli's picture

You can get an offshore address with forwarding service and a foreign looking email account and here you go opening a broker account.

They want a foreign address, a copy of your passport and money. Bingo. Nothing gets mailed anyway. everything done online. 

If you can't swing this, take a trip somewhere. If you can't afford the trip, why are you even in the market?


Sun, 06/19/2011 - 23:53 | 1383805 JustACitizen
JustACitizen's picture

Why - does trading in precious and semi precious metal produce tax payments? I have to admit - I am curious as I have never heard of that.

Sun, 06/19/2011 - 23:46 | 1383790 HungrySeagull
HungrySeagull's picture

Fuck it. Buy Silver and Gold now. That's Physical.

We have just crossed an event horizon here. And a month ago I thought mere margin hikes were fantastically "Alice in the Wonderland" now here we are staring upon Stephen King's "The Stand" at the start of a epic 9 hours of hell of movie watching.

Any of you old enough to remember the Stand cheers.

To the young ones, don't try to download it in full, it will break your internet.

Mon, 06/20/2011 - 00:20 | 1383904 slewie the pi-rat
slewie the pi-rat's picture

i am celebrating the event horizon called "fatherhood"----happy fathers' day, BiCheZ!

Mon, 06/20/2011 - 02:24 | 1384168 Yen Cross
Yen Cross's picture

 +1 Slewie. Yen.

Mon, 06/20/2011 - 06:30 | 1384344 BigDuke6
BigDuke6's picture

Good on ya slewie - it will keep getting better and better.

a friend told me that about fatherhood many years ago and its true.

as far as the gold debate goes....

just dont be rushing into anything just now.

the big thing is going to be the (temporary) end of QE3, this will make the headlines and cause the buying opportunity more than the vague shit in the above article.

CMC markets? never heard of them and never will again.


Sun, 06/19/2011 - 23:50 | 1383798 traknologist
traknologist's picture

Smells like a SHTF scenario is around the corner.

Mon, 06/20/2011 - 00:37 | 1383967 TwoShortPlanks
TwoShortPlanks's picture's like putting a condom over the USD after already having 14.4 Trillion children.

Sun, 06/19/2011 - 23:47 | 1383799 tmosley
tmosley's picture

This makes me harder.

Less participation-->more volatility-->higher ratio of users demanding delivery to speculators-->less money for the COMEX to buy up physical to cover their contracts.

This is getting more and more interesting.  I'm tempted to up my likelihood of a collapse during July delivery.

Mon, 06/20/2011 - 00:17 | 1383892 DoChenRollingBearing
DoChenRollingBearing's picture

The Bearing has a terrible prediction record, at least for short term movement.  A July collapse of the paper markets is OK with me (though non-expert DCRB does not make a prediction here).  I front-ran the b******s...

The longer the time frame however, the more often I am right.

Physical gold and physical silver.  Add physical platinum, and we have diversity!

Yes, tmosley, each day this gets more interesting.  And each day, my esteem for FOFOA grows.

Mon, 06/20/2011 - 00:18 | 1383898 Libertarians fo...
Libertarians for Prosperity's picture

Nearly every day, you tell everyone that silver volatility is increasing.  

Can you explain what you mean by this?

Thanks in advance....

Mon, 06/20/2011 - 00:38 | 1383970 tmosley
tmosley's picture

Sure thing, RNR.  It means the price goes up, and the price goes down.  Sharply, and quickly, on no news.

Sadly there is no real measurement for silver volatility, so one is forced to rely on their own memory.  However, those who have traded silver for a long time see it.

But then, being the disingenuous person that you are, I doubt that you actually wanted that answer.  I'm sure you were hoping for something you could use as a segue into some non-sequitur to try to discredit me, something you have tried to do repeatedly, but have failed miserably.  So miserably, in fact, that you have had to open multiple accounts to try, try again.

And I didn't say that it IS increasing, I said it HAS increased, and that it WILL increase further in the future.  Volatility is holding steady at somewhat elevated levels just now.

Mon, 06/20/2011 - 02:03 | 1384124 Libertarians fo...
Libertarians for Prosperity's picture

Sadly there is no real measurement for silver volatility, so one is forced to rely on their own memory.  However, those who have traded silver for a long time see it....Volatility is holding steady at somewhat elevated levels just now.

LOL !!

So here we have - yet again - tmosley driving the "Silver Lemming and Doomer Bus" straight toward the cliff. 

chitty chitty bang bang, chitty chitty bang bang....


Wanna try again?  I'll give you a free mulligan.

Be careful, mosley: this is the all-to-familiar part of the conversation where I've got you over coals, strapped to a rotisserie with match in hand. 

Before you respond, please familiarize yourself with VXSLV. You might find it useful.  Here's a hint: silver volatility has nothing to do with the "hunch" of a goofy, doomer goon.

Price goes up.  Price goes down....





Mon, 06/20/2011 - 04:22 | 1384267 EscapeKey
EscapeKey's picture

Be careful, mosley: this is the all-to-familiar part of the conversation where I've got you over coals, strapped to a rotisserie with match in hand. 

Considering your account has only been registered for 3 weeks, and you consequently couldn't have been around when Silver tanked, aren't you supposed to log in under your alter ego before claiming this?

Mon, 06/20/2011 - 06:13 | 1384331 Yen Cross
Yen Cross's picture

Alter Igo's (sp} ?

Mon, 06/20/2011 - 08:06 | 1384423 tmosley
tmosley's picture

Alter Igor.

"Wasn't that hump on the other side?"

"What hump?"

Mon, 06/20/2011 - 08:05 | 1384420 tmosley
tmosley's picture

He's a lying coward, and a true sack of shit.  When it suits him, he calls me crazy for telling him and everyone else that he is the latest in this string of alter egos, yet at other times like this, he claims to have had significant interactions with me in the past.

Not only that, but this guy is using some sort of pro-tools developed SPECIFICALLY for this site, which catches edits.  I edited something literally five seconds after I posted it, due to it being an exaggeration, and he "jumped" all over it--an hour later!

Pretty sure it's not paranoia when they really are after you.  In this case, this moron is all too transparent.

Mon, 06/20/2011 - 08:41 | 1384475 EscapeKey
EscapeKey's picture

I personally liked Texas Gunslinger's "transition" from n00b to silver expert in 3 weeks.

Mon, 06/20/2011 - 07:57 | 1384413 tmosley
tmosley's picture

SLV!=$silver, and implied volatility!=volatility.


Mon, 07/04/2011 - 14:14 | 1424765 Himins
Himins's picture

Sadly these trolls offer no meaningful insults yet. It may indicate a corruption in the gene pool. It may be years perhaps centuries before this gene pool can evolve into someone who can offer a meaningful dialog worthy of repeating.  When the insult does not bear repeating, in today’s world, with a population of over 6 billion people, this tactic may not have much effectiveness and may require some minor adjustments in the future.

Sun, 06/19/2011 - 23:53 | 1383807 Zerohedgefunder
Zerohedgefunder's picture

What is happening here? Can someone shed light on what's going on? What can I do now that I won't be able to do in late July? Thank you.

Mon, 06/20/2011 - 00:03 | 1383835 HungrySeagull
HungrySeagull's picture

Take a coin out of your pocket.

Pretend is made of 99.9% Gold or Silver in ounce or whatever.

To buy this coin will cost you about 40.00 (Spot 36 plus 4 as of earlier tonight) online or by phone more or less. Silver, or about $1550 Gold mailed to your hot little hands at home.



There are people who write the words gold or silver in crayon onto glossy paper and sell it to a sheep herd who THINK they own Gold or Silver.

All of that Paper is about to be cremated at the close of business day one fine afternoon in July. All the actual real money you blew buying pretend color paper of gold and silver while dreaming an illusion of a carefree future.... POOF.

There is going to be a day of reckoning the next morning. And be afraid.

Those who hold physical, actual metal in gold or silver bullion, coin or bar form will have now the power to buy and sell as they wish. As long as Uncle Sam does not do what they did under... FDR in the 30's Made it illegal for a US Citizen to OWN or POSSESS or have access to via Bank safe deposit etc a Gold coin, bullion or bar.


Mon, 06/20/2011 - 00:23 | 1383928 goldfish1
goldfish1's picture


Did you order the code red?

Mon, 06/20/2011 - 00:34 | 1383944 HungrySeagull
HungrySeagull's picture

Few Good Men....


What a film that was.



Mon, 06/20/2011 - 05:29 | 1384302 francis_sawyer
francis_sawyer's picture

- "I object"

- "Overruled"

- "I strenuously object"

- "Oh, I strenuously object" (is that how it goes)?

Mon, 06/20/2011 - 08:51 | 1384516 oddjob
oddjob's picture

Nothing good has ever come out of the cespool known as Hollywood.

Mon, 06/20/2011 - 00:47 | 1383984 TwoShortPlanks
TwoShortPlanks's picture

And eBay will become the Black Market of choice!

Mon, 06/20/2011 - 00:50 | 1383993 HungrySeagull
HungrySeagull's picture

Ebay will be like forcing your manhood through a iron maiden into the lotus.

No thanks, if Ebay wises up and fees the metals to death.... ugh.

Sun, 06/19/2011 - 23:54 | 1383813 oldmanagain
oldmanagain's picture

""While we still are not confident we understand precisely what span of products is prohibited by Dodd-Frank, it appears that ever more brokers are interpreting the law loosely enough to where practically all gold and silver products will soon be removed from retail participation."

Translation.  Tyler is short.

Sun, 06/19/2011 - 23:54 | 1383814 Hoody Who
Hoody Who's picture

I just started purchasing SAE's about a month ago and a tiny bit of GAE's.  Now it looks like we are entering a no mans land. 

Some think it will cause the price to go up and some think it will go down.  At this point I simply do not know.  I guess we will all find out soon, entering this unknown.

Wow, what a crazy world we live in.  I highly recommend to just keep prepping!

Mon, 06/20/2011 - 00:02 | 1383847 JW n FL
JW n FL's picture

I am betting that people will load up for delivery...




Holy Shit Batman!

Greece just defaulted so that dumbass Americans could see what happens when a Nation defaults! WOW! Learning Curve! and this Default will be televised!

Mon, 06/20/2011 - 00:07 | 1383857 HungrySeagull
HungrySeagull's picture

Not crazy. Only a cold simple decision to make. I was going to buy some silver or gold next month and take delivery as usual.

Because of these developments, I look about my budget to see if I have the balls, horsepower and the guts to either buy it NOW and add a few more onto the pile.

Or keep what I already have and hold onto the paper US dollars in case July explodes after the cremation of paper.

I already know from the ass reaming we got when Margins were hiked until all cockroaches fled the light.... we are probably going to lose access to buying gold and silver to a wave of panic buying that will hit the coin dealers come sunrise east to west across the land and online as the people wake up to coffee and these news.

Mon, 06/20/2011 - 00:26 | 1383924 DoChenRollingBearing
DoChenRollingBearing's picture

"ass reaming we got..."

No worries mate!  Those of us with physical gold (and silver and platinum) will be just fine.  Those of us with LARGE physical holdings will prosper...

If you have no gold or too little, then go out and buy some!  Before the PMs become scarce and REAL expensive...

So, the answer is YES to both:

-- Buy some NOW!

-- And keep some cash to buy in case the price goes down.

Do both, and you become a BIG winner!

Sun, 06/19/2011 - 23:57 | 1383822 Hearst
Hearst's picture

Do we interpret these Frankendodd rules as intended to force traders out of paper Gold and Silver positions to protect the Comex and like exchanges?  Or from a different albeit opitmistic angle, perhaps these laws are intended to steer the herd into physical metal thereby conquering the enemy manipulating precious metals.  This might be Bart Chilton's hidden flanking maneuvers...?

Mon, 06/20/2011 - 00:07 | 1383871 HungrySeagull
HungrySeagull's picture

It might just save Comex from failing to make delivery on silver or gold they know they cannot have. They can scour the world over and still not meet a Paper sell order come July 15th or much earlier. I say it starts this week.


The margin hikes shook the weak last month. Some still bought while leaning into the shitstoorm.

Now maybe, just maybe the Paper Bulls will wake up, get illuminated, dump paper and become flush with Physical before Joe 6 Pack decides to buy the whole coin shop in a panic.

Mon, 06/20/2011 - 01:12 | 1384049 Hearst
Hearst's picture

At best it would be buying the Comex much needed time.  Even if they really own the 27 million Silver oz they claim to have, moves like this can only be understood as desperate.  I think the blood in the water just became a bit thicker and the sharks are about to move in.

Sun, 06/19/2011 - 23:58 | 1383828 Sizzurp
Sizzurp's picture

Physical gold and silver will soon go into hiding as real open price discovery is squelched.  It's a case of kill the messenger, nevermind the message.  We must be very close to the endgame of irredeemable currency. 

Mon, 06/20/2011 - 00:13 | 1383881 farfel
farfel's picture

Are you a follower of Fekete?  It would good to get the Professor's take on this news.

Mon, 06/20/2011 - 00:21 | 1383906 Sizzurp
Sizzurp's picture

I love reading his stuff.  Not sure what he thinks of this, but I imagine it is just what I said.

Mon, 06/20/2011 - 00:01 | 1383845 williambanzai7
williambanzai7's picture

Bilderberg anyone?

Mon, 06/20/2011 - 02:00 | 1384132 MagicHandPuppet
MagicHandPuppet's picture

Good point.  I didn't even consider the coincidence.

Mon, 06/20/2011 - 02:58 | 1384204 ThoughtCriminal
ThoughtCriminal's picture

City of London

Mon, 06/20/2011 - 00:06 | 1383848 Zero Govt
Zero Govt's picture


i'm picturing a 2 headed monster, both ugly and both sock puppets for the far larger body of Wall Street crooks behind this law (fascism) ...another free (!) market suffocated in the 'Land of the Free'

Mon, 06/20/2011 - 00:13 | 1383879 Superslam
Superslam's picture

These moves seems a bit premature to me. As noted, the CFTC will likely not be in a hurry to clarify Dodd-Frank's FX/metals/commodities restrictions for traders--retail or otherwise. The brokers who are halting XAU and XAG trading are acting preemptively, perhaps hoping to appease US regulators who may or may not have the authority to shut down down retail FX entirely. (This seems to be the legal position which several brokers have already taken.)

One question I have--in addition to whether my broker is going to halt metals trading--is whether the exemptions written into the FX portions of Dodd-Frank are even legal. How can a law say that people who have a net worth of X or more, may in engage in commercial activity Y, while those worth less than X, may not?

Any financial lawyers out there want to chime in?


Mon, 06/20/2011 - 01:10 | 1384050 JohnG
Mon, 06/20/2011 - 00:12 | 1383888 ArkOmen1
ArkOmen1's picture

Akzeptieren fiat, oder sonst!

Mon, 06/20/2011 - 00:20 | 1383915 ArkOmen1
ArkOmen1's picture

This is an omen, for sure. I believe this means that the controllers are anticipating the biggest rush into precious metals ever in the history of fiat. They are just locking down some of the ways to speculate. However, methinks holding any form of paper metals just got somewhat more precarious.

Mon, 06/20/2011 - 00:30 | 1383936 Silver Bug
Silver Bug's picture

This is why you need physical, physical is real, this is just more nonsense. The games are only going to get worse from here.

Mon, 06/20/2011 - 00:30 | 1383945 TwoShortPlanks
TwoShortPlanks's picture

Just another way to protect the US Dollar...or at least, try to protect it....FAIL.

Mon, 06/20/2011 - 00:36 | 1383949 Bansters-in-my-...
Bansters-in-my- feces's picture

Bilderberg's...with a side of CFR....

Mon, 06/20/2011 - 00:35 | 1383962 macholatte
macholatte's picture

Did the law specify PM's or did it include ALL commodities?

IMHO, it ain't just PM's. The genesis for this might be those eveil doers who speculate in black gold. PM's might just be an innocent bystander.

from yesterday (emphasis mine): 

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).

 the reference to metals above is by example and not the specific target of the law. This cancer is going to spread.


Or did I miss something?


When we hang the capitalists they will sell us the rope we use.
Joseph Stalin
Mon, 06/20/2011 - 00:45 | 1383979 HungrySeagull
HungrySeagull's picture



The fugging VLCC cannot make 28 days crossing godamn it!

Oh shit.

That means Texas and Cushing goes dry waiting on a fleet that just got diverted to another nation closer to the VLCC.

Tue, 06/21/2011 - 00:01 | 1387809 FlyPaper
FlyPaper's picture

Great observation

Mon, 06/20/2011 - 00:40 | 1383968 ebworthen
ebworthen's picture


Fuck The People, feed the banksters and politicians; the show goes on...


Mon, 06/20/2011 - 00:43 | 1383974 honestann
honestann's picture

Okay, call me dummy, but I don't understand the niche and significance of this.  What I understand is buying physical PMs, buying futures contracts to buy or sell PMs, and options on those futures contracts.  So what is this, exactly?  And where does it supposedly lead?

Mon, 06/20/2011 - 00:52 | 1383982 ebworthen
ebworthen's picture

The first step in removing PM's as a source of currency.

Squelch the commodities markets to allow the banks, financiers, central bankers, and governments time to exit before confiscating, forbidding, and/or draconian taxation of ANY Precious Metal transactions.

Mon, 06/20/2011 - 02:23 | 1384167 honestann
honestann's picture

Yeah, yeah, yeah.  But how, exactly?

First, it doesn't have anything to do with us getting physical PM from our friendly neighborhood or equivalent, right?

Second, it appears to actually FORCE every individual to collect the physical at the end of the contract, rather than just play PMs with fiat, fake, fraud, fiction, fantasy, fractional-reserve toilet-paper... which is good, because that might tend to increase taking physical possession.

The rest of your assertions don't make sense.  But they might make sense to me if you explain how this leads to that, which was my question afterall.

Thu, 06/23/2011 - 21:33 | 1397238 ebworthen
ebworthen's picture

Push speculators in the trades and paper and ETF's, top down.

Pushing individual buyers to physical PM's?  Fine, that is part of the plan.  Those who move to physical and are denied sale of said physical by confiscation or taxation schemes (requiring dealers to report any sale of any amount and spending pocket change on undercover IRS agents posing as sellers) would quickly shut down anything but the black market.

Those who don't want to enter the black market will be screwed, and it will be just those "tin-foil hat" types (me included) that don't believe in fiat who will be crushed and forced to liquidate other assets and/or tow the line with the equities markets and treasuries.


Fri, 06/24/2011 - 00:50 | 1397610 honestann
honestann's picture

Oh, no way will they ever get my gold or silver, no matter what they say or do, and no matter how hard they try.  Screw them.  That is way, way, way, way, way over the line in the sand.  They'll have to settle for lead if it comes to that, but it won't, because they won't find me or my goodies in the USSA.

I'm sure I'll find plenty of people willing to accept my physical silver and gold for goods outside the neo-nazi united slave states of amerika.

Yes, I do expect them to try all sorts of things to mess with people who buy gold.  These cretins are pure, unadulterated predators.  They have zero ethics, zero scruples, zero concern for anyone or anything but enslaving and bleeding everyone on earth.  They deserve to be treated as predators, which hopefully someday they will be.

All I can say about tin foil hats is this.  I still haven't figured out how a metaphorical tin hat can prevent brain damage, but it sure appears to work that way.

PS:  On the current topic I was just trying to figure out how significant the effect of this one change is.  I have no doubt it is part of a long term plan to enslave and destroy everyone.

Mon, 06/20/2011 - 00:48 | 1383988 The Aviator
The Aviator's picture

These guys are getting DESPARATE!! Not much time left.
I, for one, am beyond pissed off at the cartel.

Join the Silver Viral Project and lets take down some banksters!

Mon, 06/20/2011 - 00:46 | 1383994 New Survivalist
New Survivalist's picture

Just bought one 100 Trillion uncirculated Zim Dollar to keep in my wallet as a reminder of what's coming. Funny, it's actually worth three US dollars now as a collectible.

Mon, 06/20/2011 - 02:18 | 1384164 Prometheus418
Prometheus418's picture

Just wait until it's worth face value....

Mon, 06/20/2011 - 00:54 | 1384010 beanieville
beanieville's picture

Gold buggers now abandoning precious metals in favor of bitcoins.  Has the world gone CRAZY?

Mon, 06/20/2011 - 04:28 | 1384271 EscapeKey
EscapeKey's picture


A key point with regards to trolling is to stay believable.


Mon, 06/20/2011 - 01:22 | 1384060 ONEPurpose
ONEPurpose's picture

@Beanieville : ha^ more silver for us, i guess. Bitcoin is too new to be reliable. People are getting their bits stolen, and tracking who stole it is a nightmare.

Everyone seems to be in agreement, physical is where it's at.

If you haven't heard peeps, started a Viral Marketing Campaign for physical silver. They introduce it with a guidebook that structures the campaign through a breakdown of the Hacktivists Anonymous' success, Soviet propaganda techniques, and 3 Phases of Operation.

Phase 1, paper destruction, is a success already!


Let's get Physical.

Silver Virality: Project Awareness.

Be an Agent:

Mon, 06/20/2011 - 01:22 | 1384070 ViewfromUnderth...
ViewfromUndertheBridge's picture

Well...I wasted part of my life reading these comments just to confirm that NOT ONE OF YOU read the post properly...not even this particular Tyler who, imao, is a click-baiting moron.

If you could bother to read the attached image you would see:

"Please note that XAUUSD and XAUUSD (Spot Gold and Spot Silver) will still be available to trade"

So, the information supplied by CMC means the opposite of what this Tyler's headline represents and is unrelated to the Dodd/Frank 742(a).

I think this move relates to the lack of interest in CMC futures for gold and silver compared to their rolling spot platform.

There is one Tyler who is an absolute stand out for shithouse journalism, I implore the other Tylers to withdraw this one's posting privileges.

Mon, 06/20/2011 - 01:53 | 1384122 Poor Grogman
Poor Grogman's picture

Yep that article nearly gave me a heart attack.

Good thing it was mostly b/s

Mon, 06/20/2011 - 01:57 | 1384128 HungrySeagull
HungrySeagull's picture

Go ahead laugh it off as you sleep on your paper gold and silver bedded catbox.

It will be dumped and thrown out pernamently in July leaving you on the cold stone floor.

The music is stopped now and the ones who see are already moving for that last chair.

The rest of the ... investors.. ahem the sheep... sit fixtated on the cries of the heartbroekn champion who just lost his love on stage; they are not yet aware that the light that illuminates the stage is the oncoming firestorm and they can never leave thier theater.

Mon, 06/20/2011 - 02:02 | 1384139 Poor Grogman
Poor Grogman's picture

Yeagh Whatever...

Mon, 06/20/2011 - 01:29 | 1384078 ONEPurpose
ONEPurpose's picture

Either way, people are going to start losing faith in paper silver markets, its going to become exposed as a market that is built on paper backing paper backing paper backing paper backing paper backing paper




Revolution loves silver.

Mon, 06/20/2011 - 01:36 | 1384092 Coldfire
Coldfire's picture

Frankendodd is one hella raft of poo.

Mon, 06/20/2011 - 01:37 | 1384098 Ecoman11
Ecoman11's picture

This is bearish in the short term and bullish for the long. They (whoever it is) know that there is not enough physical to fullfill invesment demand so they figure that it's better to pull plug on paper trading and let the 1% of physical holders get rich rather then the entire market.

These events always come in threes, expect another halt somewhere soon. Better get some good ol bullion before it's all gone...


Mon, 06/20/2011 - 01:47 | 1384108 Yen Cross
Yen Cross's picture

 it's all really simple. Thor! has played out the Samari card. The yen is overbought and has no export quality bump/premium in it "Right now". So who is the next risk poster child? Aka reserve currency.  Not gold or silver.  It comes from Asia or South America. Lets flip a coin.

Mon, 06/20/2011 - 01:54 | 1384127 HungrySeagull
HungrySeagull's picture

South America is looking damn good right now despite thier issues.

Hate to say it, but it might be worth fighting for.

Mon, 06/20/2011 - 15:25 | 1385885 jomama
jomama's picture

south america has always been my plan for a final destination, with its large amount of untamed land and plentiful natural resources.  namely the chilean coastline.

Mon, 06/20/2011 - 01:57 | 1384126 MagicHandPuppet
MagicHandPuppet's picture

This should be a good gladiator event.  It won't change my core position or long-term plans but it certainly makes for some exciting entertainment.  At least the evil empire is going to put up a good fight to find the absolute limits of "protecting" it's currency and explore the absolute limits of deficit spending before it has to completely turn in and start the massive predatory feeding on it's citizen-slaves (for their own good, of course).  I just want to avoid being a tasty snack in that phase of the games.  Once the implosion is complete it should be fun times in the zombie killing fields!  Let the games begin!

Mon, 06/20/2011 - 02:01 | 1384133 Ecoman11
Ecoman11's picture

The sad part is even if you save your wealth or make it through the collapse, things will be so bad that you won't enjoy it.

Mon, 06/20/2011 - 02:21 | 1384162 HungrySeagull
HungrySeagull's picture

No Sir, we are enjoying it now while there is Peace and QUIET.

There will be fighting soon enough to deal with.

But until that dark day comes, I see each week as a chance to prepare. Maybe, just maybe this fucked over nation will wake up and get back to basics and remember what it once was to be a strong country providing for all who wants to work and a chance to live well.

By that I mean, no debt, no chinese crap that wears out in a year, no leveraged shite and no need for anyone to bail anyone out.

Life is but a dream.

Mon, 06/20/2011 - 03:19 | 1384220 Yen Cross
Yen Cross's picture

  The enemy of my enemy "IS MY FRIEND"!

Mon, 06/20/2011 - 07:07 | 1384366 Long-John-Silver
Long-John-Silver's picture

and when the friends enemy is destroyed the "friend" is stronger and becomes an enemy you can't defeat. You put a knife in the back of your "friend" as he shoots your enemy.

Mon, 06/20/2011 - 03:26 | 1384228 goldenrule
goldenrule's picture

Any broker that does this insane crap... Pull your money from them. Period.

Mon, 06/20/2011 - 03:47 | 1384236 Yen Cross
Yen Cross's picture

 Be your own broker. I wouldn't trust one of those so called brokers EVER!  Hell it looks like the exporters are fighting Kampo and BoJ right now.  I like a nice monday battle!


    Anyone have any ideas on those ust-10 & 5 yield changes?

Mon, 06/20/2011 - 03:41 | 1384234 bluedvl
bluedvl's picture

So go short slv? 

Mon, 06/20/2011 - 03:42 | 1384238 Yen Cross
Yen Cross's picture

WAIT for XAG to bottom then add!  34.34 On that old trend line, if you feel RISKY!


    ME NO!

Mon, 06/20/2011 - 05:13 | 1384292 Jambo Mambo Bill
Jambo Mambo Bill's picture

They going to do anything they can to inflate the greenback.

Mon, 06/20/2011 - 06:05 | 1384328 pazmaker
pazmaker's picture

I have not heard anything from OANDA yet.

Mon, 06/20/2011 - 06:35 | 1384345 TwoShortPlanks
TwoShortPlanks's picture

This maybe Clap-Trap, but I wrote an email to some mates who are interested in Silver.

I may be totally wrong and my numbers may be incorrect, but just have a think about the overall picture.

All my Hyperlinks to articles are missing, but you guys know the history anyway.



Email Reads:

Hi All,

Looks like very interesting times ahead. Of late, I’ve been adhering, strictly, to a single motto: Listen to what they say but more-so, watch what they do.

Okay. The Gold and Silver world just got a huge shake-up today, with and CMC releasing information that it will be discontinuing its Contracts For Difference (CFDs) accounts as of end of July.

What does this mean? Well it seems that both, CMC and other trading houses are convinced that Congress’s Dodd-Frank Bill will put an end to any US Citizen (not company or bank mind-you) from trading Gold & Silver contracts. This does not affect investors of physical Gold & Silver (or any other PMs). So these entities have taken the precaution of shutting down their trading and thus exposure.

So, have they been Tipped-Off, or did they come up with this all by themselves? I don’t know!

What does this mean for Gold and Silver investors? Well if you own physical Gold & Silver, you’re laughing…unless the US confiscates physical G&S like they did back in the 1930’s. This doesn’t apply to citizens outside of the US however, back in the 1930’s the US Treasury paid $30/oz for Gold, once it secured as much as possible, they them pegged the price to $700/oz…what a scam! For those who own Gold or Silver contracts, I think those paper certificates will go up in smoke come settlement day in July.

If the Dodd-Frank Bill really does mean there’s an end to Gold & Silver trading for the US Citizen, what does it all mean? Well, this is a simple way of forcing the US public to own US Dollars or US based assets (eg real estate) instead of Precious Metals…but this would only make sense if the US Dollar undergoes a…collapse!!! This protocol is only something you would do as a last ditch effort to save a currency, it is not something you would do in times of prosperity.

Is this a sign that then US Dollar’s days are numbered? Well, when you consider the Dodd-Frank Bill applies not only to Precious Metals but all Commodities, such as Oil, and that and CMC’s appreciation of the Bill is correct, then, YES, the Dollar will die and the US Government knows it. This applies to Congress, the Fed, and of course the US Treasury.

I’ll hit you with what I believe…and it seems to be all quite logical now.

1. After 5 Margin Hikes by the CME in just 8 days, immediately prior to a deliberate Flash Crash, Silver went from US$48.21/oz to US$34.39/oz…and by coincidence (LOL), over a long weekend!

2. For the past 6 months Silver allocations in the COMEX group of vaults have been moving from ‘Registered’ to ‘Eligible’ (Undefined). There has been a series of these anomalies.

3. Once Silver hit AUD$32.38/oz, the Perth Mint went into Silver shortage even though it shipped dozens of pallets of Silver Blanks to the USA. These blanks are in Monster Boxes, so 16,000 x 1oz Blanks per pallet (I cannot tell you how I know this information) and there is a good chance these may end up being up to 250,000 Silver Eagles within a few months time, just from Silver from the Perth Mint. If the US Mint had bought from 3-4 other Mints around the world, they may have bagged about 1 Million Blanks destined to become Silver Eagles.

4. COMEX changes ‘Fine Print’, settlement can now be offered in Cash/EFT, not Physical Delivery.

5. Gold and Silver, if Minted within the USA, is now legal tender in Utah. 13 other states, including Washington, are moving to legalize the same.

6. Even though the Perth Mint declared 7 weeks ago that Silver shortage would end when their ‘”New Machines became operational” in 2-3 months time, they quoted me the same story and time-frame just last Friday while I was there.

Now, go to my FaceBook Wall and have a look at the 16 graphs which represent 16 Stocks and Share Markets around the world. Except for maybe Germany, India and a few others, every single one is in trouble. Combined, this represents massive stress on markets are liquidity exits markets and as such takes a ‘Hair Cut’ in order to find a Clearing Price to some sucker who thinks it may repatriate some time later.

If and CMC have got it right, the Dodd-Frank Bill before Congress represents a bottleneck to US Citizens, forcing them to go through the largest of trading banks on Wall Street. And since the average citizen wouldn’t be able to get an account, it’s pretty clear that the average Joe must settle for physical Gold and Silver instead. This may well be Constitutional.

Now here’s the biggy….what if the US Treasury were thinking about moving to a Gold and Silver Standard even though they are adamantly opposing the idea through the media (which is what they normally do anyway)? First of all, we know that less than 0.01% of the US population own any meaningful amount of Gold and/or Silver Bullion. Implementing the Dodd-Frank Bill would corral the average citizen into buying physical Gold & Silver…but the prices are too low at the moment!

*Light-Bulb Moment*, but what if the US Government liquidated all Silver (SLV) Short & Long positions via the CME and paid out at Spot Price (about US$34/oz)? The COMEX has already stipulated this cash settlement remember. This would mean that the suppressed price of Silver would rise rapidly and Gold too! You may se Gold hit US$5000/oz and Silver may recover to it’s historical value of 15:1 against Gold (The Gold to Silver Ratio). So Silver would hit US$333/oz. If the US Mint could convert all it’s Silver stocks on the COMEX and associated Vaults to Silver Eagles, they could easily Mint up to 30 Million Ounces, or 30 Million Silver Eagles, which represents……US$9,990,000,000 (That’s 10 Trillion Dollars).

So, what if the US Treasury/Mint are planning on converting their entire Silver stocks and a large portion of their Gold stocks to Minted Coins? The answer, simple, they go from the world’s worst currency straight to the world’s number 1 currency overnight, but only if US Federal Notes are reprinted back to their previous wording of, “Redeemable in gold [or Silver] on demand at the United States Treasury, or in gold [or Silver] or lawful money at any Federal Reserve Bank”

This would kill the IMF’s SDR and the Chinese Yuan as the other contenders for Global Reserve Currency and may well revive the US Dollar at the same time.

Mon, 06/20/2011 - 10:10 | 1384699 ZeroPower
ZeroPower's picture

After 5 Margin Hikes by the CME in just 8 days, immediately prior to a deliberate Flash Crash, Silver went from US$48.21/oz to US$34.39/oz…and by coincidence (LOL), over a long weekend!

And did miss the 'Flash Smash" high to $49? I assume you think that was real price discovery because it confirmed your bias of wanting higher silver prices?
Of course not, its only a scam if silver is lower right...

Tue, 06/21/2011 - 00:56 | 1387913 TwoShortPlanks
TwoShortPlanks's picture

I throw a (self-acknowledged) wild hypothetical into the ring and you get all emotional...this is hilarious, because dozens of self-proclaimed experts on ZeroHedge have been touting for months now that the Messiah will come down from the mountains with QE3 in arms and that this is a done-deal, but that huge boast has gone silent, why I wonder let's get this one straight braniac; I've been saying QE3 will not happen over 3 months ago, before the Fed uttered a word, before PIMCO broke ranks, when nobody else did, and guess what, I've been right on that call all along! I also called a Credit Crunch too, which you can still hold me to.

Study your stats and graphs all you like ZeroHedge experts, they won't help you. This game's being played on a rigged field; nobody here is an expert now, nobody, not even you ZeroPower.

Tue, 06/21/2011 - 19:09 | 1390689 ZeroPower
ZeroPower's picture

Well you were right about the lack of immediate QE3; i cant say ive followed your posts though, too many users here to keep track of.

As for silver, i was calling the price action as i saw it.

Wed, 06/29/2011 - 22:31 | 1414354 TwoShortPlanks
TwoShortPlanks's picture

For me, the big picture is real simple; there is a three-pronged power struggle going-on. The players are, the US Dollar, The IMF's SDR, and BRICS Yuan.

The last option open to the US Dollar is to allow a PM Bubble to inflate Gold and Silver, then let it crash, taking down Asian and European currencies. This may reinstate the US Dollar as a Safe Haven. It's a scorched earth policy, but America is that type of player so it's not beyond them.

There are only two more possible bubbles, Tech-Stock (Dotcom 2.0), or, PMs. My money is on PMs because of what I've written above. The reason I say only two options is because of market saturation. The US has a sizable PM stock (Institutional and Public) and therefore influence on global markets. Tighten deregulation, and you have a pressure vessel without cracks, ergo, local PM inflation control. Tech stocks will be a case of finding the greater fool immediately...a stock flipping exercise right from the go...and it will fail immediately.
I'm so confident that this will happen that I'm about to sell-up my Gold and Silver and buy Silver Eagles and becasue of Canada's bond  and trade obligations to the US, I'll be adding to my collection of Maples also. Why? Because if a PM bubble inflates, I own Silver Maples and Eagles, and if it backfires, I own Silver Maples and Eagles to sell to hyperinflates US markets. Win-Win!

Mon, 06/20/2011 - 10:39 | 1384766 HungrySeagull
HungrySeagull's picture


That is good. Really good. Almost too good.

What about the extra few trillion debt that Congress is now testing to vote raising the limit this summer?

A birdie told me that there is a Mint or two somewhere in the USA that is being spooled up to increase output to satisfy demand. I was wondering where in hell the raw material will comne from to feed em.

Nice read over coffee! Thank you!




333 silver is a bit rich even for me. At that kind of sale with what I have on hand (Which isnt all that much trust me...) it will essentially gaurantee I will never need Credit or Loans/Banks ever again in this Life. Or even to worry about retail. Just a click gets whatever shipped right here quick. 18 wheeler, Railcar (I am hoping railroads still provide common service to a trackside in a town correct?), container or brown little truck.

Tue, 06/21/2011 - 01:26 | 1387979 TwoShortPlanks
TwoShortPlanks's picture

$333 isn't too rich...I thought millionaires were rare, now everyone in my street is living in multi million dollar houses...they're not worth that much, it was merely the real estate hysteria. Don't think for one second that Gold and Silver cannot increase 10 fold in a panic, to do so might be at your own demise.

The biggest mistake you'll ever make is to listen to Stock Market/Economic know-it-alls, on sites just like this, who are talking their book in one way or another. If you went back in time just 10 years and tried to convince people of the current reality, you'd be locked-up. All you need to do is gleen your information from as many avenues as you can, and make up your own mind.

Common sense can tell you want a dead USA economy will do to PMs.

Mon, 06/20/2011 - 12:10 | 1385042 Sgt.Sausage
Sgt.Sausage's picture

==> Mint up to 30 Million Ounces, or 30 Million Silver Eagles, which represents……US$9,990,000,000 (That’s 10 Trillion Dollars).



It's not.

It's 10 Billion. Not even a drop in the bucket.

BTW - the rest is pure crap too.

Tue, 06/21/2011 - 00:09 | 1387819 TwoShortPlanks
TwoShortPlanks's picture was just a thought!

Mon, 06/20/2011 - 06:45 | 1384348 mogul rider
mogul rider's picture

Boy the stretch of imagination runs wild. It's called the Internet, A large black market will appear.

The hysteria is truly sad. The newbies are going bananas over this non event.

Futures has nothing to do with the physical anymore. You know that. It's is fucking dreamland for idiots.

People walk into your coin shop or Scotia Moccata or one of the thousand other sites on the Internet and hit the buy button.

IMHO the hedgies are the target here for invading the futures markets. Not retail. To risk civil war would be assinine on Oscama's part. He and the black suits know this.


Mon, 06/20/2011 - 06:53 | 1384358 TwoShortPlanks
TwoShortPlanks's picture

"The hysteria is truly sad. The newbies are going bananas over this non event."

LOL, you are probably right, but I know one thing for sure; 3 months ago I was saying that the Fed would not be conducting QE3, not untill there was a Flash Fire through the markets, and I was almost entirely alone on that position....with the exception of the fence sitters, all the non-newbies were going banannas over QE3....the hysteria [was] truly sad.

Kind regards


Mon, 06/20/2011 - 06:36 | 1384349 PaperBear
PaperBear's picture

Has anyone read kitco Jon Nadler's June 17th piece 'Vanishing Silver? Not a Chance.' ?

"we think it could decline all the way back to the $20 area before this correction ends.”

`You may now close ‘the book’ on allegations that we are nearly “plum out” of the white metal`

I am buying physical silver whatever the fiat paper price is because the CRIMEX is MOST DEFINITELY running out of registered silver.

Mon, 06/20/2011 - 06:39 | 1384350 centurain
centurain's picture

Ahh the American dream.  Here is a clip from one of the original voices of reason.

Mon, 06/20/2011 - 06:36 | 1384351 centurain
centurain's picture

Ahh the American dream.  Here is a clip from one of the original voices of reason.

Mon, 06/20/2011 - 06:51 | 1384355 PaperBear
PaperBear's picture

The US dollar used to be made up of gold coin and silver coin between 1790c-1860c so the US should just go back to gold coin and silver coin, the state of Utah has done so and 10 or so other states are planning to do so.

Mon, 06/20/2011 - 06:50 | 1384357 Yen Cross
Yen Cross's picture

usd /jpy is at war right now! I love this trade but it just so compressed. It SUCKS.

Mon, 06/20/2011 - 07:22 | 1384378 tradewithdave
tradewithdave's picture

Who needs QE3... they have QEP.


Dave Harrison

Mon, 06/20/2011 - 07:24 | 1384380 johngaltfla
johngaltfla's picture

The 'Boomerang Effect' is about to hit Dodd-Frank squarely where it hurts.

Mon, 06/20/2011 - 10:45 | 1384792 HungrySeagull
HungrySeagull's picture

The Copyright claims are flooding this particular type of video, but TMZ should have it solid.


All for you:


Mon, 06/20/2011 - 08:14 | 1384434 Mr Kurtz
Mr Kurtz's picture

If the SHTF comsic event were to ever actually occur, it would be tampons, toilet paper and ammo that would become the most viable mediums of exchange and not gold and silver. And for the non-believers out there, just try wiping your arse with a Kruggerand.

Mon, 06/20/2011 - 09:08 | 1384558 janus
janus's picture

I'm selling kits for home-made bidets.  Go long bidets.

Mon, 06/20/2011 - 13:10 | 1385192 NCFREEDOM
NCFREEDOM's picture

I am good on the toliet paper, ammo (multiple calibers for trade), medical and food stores thank you. Always looking for more. Since taking care of the beans and bullets aspect its time to complete the tri-fecta bullion!


Silver is freedom!


And would one of you paper whores sell so the price will drop, I need a SALE on Silver day!

Mon, 06/20/2011 - 08:27 | 1384454 DarkAgeAhead
DarkAgeAhead's picture

As a person with only cursory knowledge of this area, this seems like the quiet before the TBTF and powers behind the powers do something even more evil?  Like last time, in creating the Fed, right?

So what's that bigger shit they've now flushed, that's heading our way?  Anyone?  Bueler?

Tue, 06/21/2011 - 03:03 | 1388011 TwoShortPlanks
TwoShortPlanks's picture

How about Predator Drones with clusters of Hellfire missiles under-wing in case you sheeple get out of hand. You'll need to keep your head down and mouth shut as you walk between home and your Sweat-Shop job, which was exported to the USA from China as part of a 'Free Trade' agreement. Of course it brings little consolation to know that those drones are being piloted by some 18 yo boys working for a security contract company in India by day, one such boy, Raj enjoys flying R/C helicopters (assembled in some US Sweat-Shop) after work and on weekends (Weekends and wealth were 2 of many things which the USA exported to China in return for Sweat-Shops). You won't know it, but you made that helicopter, and thousands a day just like it...well, let's just say you at least screwed a few components into a frame and then passed it along the production-line to the next monkey in a long Daisy Chain of events eventually leading to a 100Yaun end product destined for some Asian kid in some Asian country. This toy of course gets paid for by some Chinese kid's father who himself worked on a production line in the Old-China, but now is retired as he saved 50% of his US$8,000 a year job and invested in Gold and Silver as stipulated by the Chinese Government 20 years ago.
How's that Turd going down so far????
Oh, and Sweat-Shops don't have day-offs Ferris, Oh Yeah!

Mon, 06/20/2011 - 09:07 | 1384538 swissaustrian
swissaustrian's picture

It´s about consumer protection. Come on, that´s good for you! You small retail investors don´t have the knowledge to trade highly volatile (manipulated) markets. Let the Cleptocrats take care of you.

Do NOT follow this link or you will be banned from the site!