Discussion in 'Stock Market' started by BoycottTheday, Aug 13, 2011.
New Rule Adds Uncertainty to Volatile Picture for Gold - Barrons.com
It might be more interesting if they bothered to tell us what the new rule is, don't you agree?
As long as gold and other commodities are traded at value of the US dollar they will continue to go up for quite some time.
It has to do with the margins traders are allowed...
Oops sorry, i was reading the long version and dint realiZe they dint include the meat in the link.
This "new rule" was already applied to silver traders back in May. The result was an approximately 35% drop in silver spot prices in a short period of time, but silver has rebounded nicely and is less volatile than it was when the carpetbagging margin speculators ruled the day.
For COMEX to change the margin requirements for gold is a GOOD thing. It will chase away the speculators who don't have the cash to pay the higher margin down payments.
Silver is the much better long term (and short term) buy. Silver is vastly undervalued in comparison to gold, and gold is always vulnerable to government "intervention". It only takes an act of Congress to force everybody to trade in their gold for "equal" amounts of U.S. paper and ink promises.
"Gold fever" is fine if you are a millionaire, but the "average Joe" should be buying as much silver as they can afford, since their 401Ks and mutual funds and all other stock market holdings are going to nosedive in the next several months.
I was thinking the same thing.
Soooooo... they're trying to eliminate the small investor? Am I reading this properly? They only want bigger orders?
Read my previous posting on this topic. You'll find your answer. This has NOTHING to do with the "small" investor. It has to do with the LARGE investors who want to take minimal risk.
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