The enforcement of the Volcker rule within our new financial reform bill has had an interesting string of events.
After many meetings in the CFTC (sunshine act) discussing this very topic with no solution coming about, a date was suddenly set to determine the final ruling. This was after an announcement that the deadline for finalization would be missed.
The sudden focus came on the very day that a former Boeing board member, and JP Morgan executive was named Washingtons new chief of staff. That person would be William Daley, look em up! I believe China just agreed to purchase $19 billion worth of aircraft from Boeing this week as well.
Conincedence? Chance? Rigged? Planned?
Use whichever reasoning that best fits your agenda.
The date was set for Jan. 13th 2011 for the final determination on position limits.
So far in dissecting the verbage, JP Morgan’s current holdings would be “grand fathered” into this new regulated era. If you look at prices for gold and silver it may reflect the truth to this. On Jan. 12th the day before the meeting, silver closed around $29.68/oz. and gold was roughly $1,386/oz. As of this writing silver is sitting at $27.38 and gold at $1,344.
If JPM is really exempt from the new rules, that means HSBC would be as well. The effect on the metals market could be substantial in the short term. Long term we still see metals heading higher, as an economic recovery with no jobs can not last very long.
Zerohedge has a great breakdown of the events that came out of that meeting at the CFTC. You should take the time to read it, find it here.
The zerohedge article encourages physical delivery of your gold and silver investments, and we could not agree with them more. The analogy used, Lucy pulling the football just as Charlie Brown was about to kick it, is a great description of what the CFTC can, and has been able to do.
The PGM’s platinum and palladium have not been effected as much, due to the fact that the retail investors are not as familiar with them. There are many more factors to this, the above listed is just one. More on that later.