Forex.com has sent this letter to its clients (Via Lew Rockwell and Zero Hedge):
From: FOREX.comIt is unclear exactly what in Dodd-Frank is triggering this move by Forex.com. I hope to have more on Monday, but these events should not be viewed in isolation. There is a clear bias in the Dodd-Frank legislation to slow and monitor activity in gold. All holders of gold should be alarmed. I expect more developments along these lines. In my view it is an attempt to gain control over how, when and where gold can be used. There would be too much uproar in the country if gold was confiscated in the manner FDR did in 1933, so this time it needs do be done incrementally, but it sure looks like this is going on.
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
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.
The Team at FOREX.com
How long after the Dodd-Frank regulations kick in, before it is discovered that a terrorist cell financed its operations using gold coins and that even more monitoring of gold is going to be required? The stage certainly appears set for further government attacks on gold.