Dodd-Frank Claims Niche Gold Trading Form

Source: MarketWatch, Claudia Assis (6/22/11)

"Dodd-Frank act restricts all trading to exchanges, eliminating over-the-counter retail currency investing."

MarketWatch, Claudia Assis

A little -known form of gold investing used by some retail currency traders is disappearing, ahead of tighter regulations scheduled to go into effect next month.

Forex.com, a large retail foreign-exchange operation, on Friday told clients it will discontinue its gold and silver over-the-counter products marketed to retail investors who are U.S. residents. It asked investors to close their positions by July 15.

"It is our interpretation that we just can't offer it legally" in response to regulatory provisions in the 2010 Dodd-Frank Act that kicks in after July 15, said Alicia Brown, a spokeswoman for Gain Capital, the parent company of Forex.com.

The allure of gold as an alternative to paper currencies has helped propel the precious metal to record highs, alongside a surge in retail currency trading.

Trading gold and silver over the counter—bypassing a futures exchange—offered investors a chance to enter a highly speculative, leveraged market that also left many investors at risk of fraud, according to one trade group.

"In order to trade, it needs to be done in an exchange, or it can't be done at all," said Dan Driscoll, a vice president with the National Futures Association.

The industry group asked Congress for such changes, due to numerous cases of fraud in such contracts. Doing business with a futures exchange offers retail investors more protections and transparency, he said.

Firms that "continue to offer these run the risk of government action," Driscoll said.

After July 15, commodities transactions between retail investors that are leveraged and not delivered in 28 days, must be conducted in a "designated contract market," a board of trade or exchange designated by the CFTC, according to the new rules.

Gold Explorer Highlights 2020 Achievements and Outlook
Source: Streetwise Reports (01/29/2021)

Magna Gold Corp.'s CEO Arturo Bonillas issued a letter to shareholders outlining the firm's business and financial accomplishments in 2020 and its strategy and outlook for 2021.

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Source: Streetwise Reports (01/28/2021)

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Silver Firm Reports Q4/20 Processing, Production Numbers from Mexico Project
Source: Streetwise Reports (01/28/2021)

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Source: Streetwise Reports (01/27/2021)

Scottie Resources Corp. advises that the target remains open in most directions.

Golden Arrow Resources Out Exploring Again After COVID-19; Hits High-Grade Gold at Tierra Dorada in Paraguay
Source: The Critical Investor for Streetwise Reports (01/27/2021)

The Critical Investor explains why he believes "investors have an interesting opportunity to invest in a pretty derisked, undervalued and experienced explorer with three chances for success."

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Source: Streetwise Reports (01/27/2021)

The StreetSmart Live! Broadcast on Jan. 26, 2021, focused on metals and why now is a good time for investors to be looking at them and the mining space. John Newell, independent analyst and portfolio manager, and John Feneck, mining sector expert and president of Feneck Consulting, addressed the status of the current metals market. CEOs of the three metals-focused companies comprising the Metallic Group of Companies—Group Ten Metals, Metallic Minerals and Granite Creek Copper—discussed their projects.

Shenanigans Abound: Gold, Silver and Cryptocurrency
Source: Michael Ballanger for Streetwise Reports (01/26/2021)

Sector expert Michael Ballanger explores the generational trends currently shaping investment markets, including the precious metals.

MMT Survey Helps Explorer Identify New Large Target at Ecuador Property
Source: Streetwise Reports (01/26/2021)

Aurania Resources reported that data from an ongoing Mobile MT Survey identified an extensive target at Tsenken at its Lost Cities - Cutucu Project in southeastern Ecuador.