This was brought to my attention today. Now you don't even have to have USD (or EUR or JPY or any other fiat currency) for collateral. It will be interesting to see how many CME member firms take advantage of this, and if the idea spreads to other exchanges:I never thought I would see the day this happened. A major exchange is for all practical purposes accepting gold as a currency.
NEW YORK, Oct 19 (Reuters) - CME Group Inc, the world's top derivatives exchange operator, began accepting physical gold as collateral for all trading products, marking the first time an exchange has allowed gold bullion to be used for margin requirements. CME's latest move underscored the rising popularity of gold as an investment asset class.
The new policy represents a more efficient way for clearing member firms to utilize their own gold bullion, said CME Group spokesman Jeremy Hughes.
The CME Group consists of the CME , CBOT, NYMEX and COMEX.
Do you think this could be because JP Morgan is short gold if I understand it correctly they will be the ones holding this gold and with the funny business going on that GATA is talking about? Anything to do with Barrick?
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