With this summer being a summer like no other, precious metals are looking more and more attractive every day. With the new Frank Dodd financial reform bill passed, and ready to hit Obama’s desk sometime next week, institutions will have to start preparing for the requirments this new law will enforce.
Be sure to look up what this law is going to give the ability of the CFTC to do. And if you do not have time, be sure your metal broker knows what’s going on. If the wording has not changed “The CFTC SHALL set limits on all futures contracts.” The word “shall” means determination or obligation, and in this case it seems like the purpose of using “shall” is obligation by law to make sure these limits are governed.
Have you been wondering why silver has not been able to surpass that elusive $20 yet? It’s due to the massive short postions that big players have on this metal. Now that this activity will be regulated, it’s only a matter of time before the metals are free to act naturally. The pull backs that you have seen over the last week or two are not a result of sellers unloading. It has been a result of of these big players anticipating the reform bill and pulling out their short bids, causing a small downturn, and a ripe time to buy. We do promise you, they will be buying on every down day.
If you are reading this, you are not part of the masses. So don’t be affected by the media paranoia of “the sky is falling” and scare yourself out of an opportunity to profit from this new reforms effects on the precious metal market.
Physical ownership is the only way to take advantage of precious metals, from what we have been hearing from all the “little birdies” certificates and ETf’s are not the way to go. Having physical metal is the best insurance policy one can have if we do end up in a global meltdown of fiat currencies. In this case, whoever posseses the strongest currency at the end will have no qualm in buying your metal from you for top dollar,yen,euro,yuan… you get the picture!