What the Volcker Rule might mean for gold
26th March 2014
http://www.usagold.com/cpmforu…goes-into-effect-april-1/
Presumably, hedging activities offered by the banks as brokers are still allowable under the Volcker Rule, and it will be up to regulators to determine whether or not a trade is speculative or a hedge placed in behalf of a client. That might be easier to do than some think in that regulators might look closely at the net position of banks by the end of any given trading day. The position of the bank should be flat — and provably so.
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16. Dec 2013
http://www.valuewalk.com/2013/12/volcker-rule-gold-silver/
The Volcker Rule, forbidding the largest U.S. banks from trading with their proprietary accounts, has just been approved and will take effect on April 1st, 2014. What impact will it have on the gold and silver markets?
According to Jeffrey Nichols of http://www.Nicholsongold.com in his most recent bulletin, the rule will have important implications because it forbids U.S. banks with federally- guaranteed deposits to do trading operations for their proprietary accounts. This means that U.S. banks, including Goldman Sachs (GS) and JP Morgan (JPM), will be forbidden from trading gold and silver for short-term speculative gains in their own accounts (futures and options). From now on, they will only be permitted to do so on behalf of their clients.
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http://www.kereport.com/2013/1…d-silver-precious-metals/
http://www.ibtimes.com/volcker…ading-major-banks-1507536
Volcker Rule Impacts: Gold, Silver & Precious Metals Proprietary Trading By Major Banks
By Nat Rudarakanchana
on December 12 2013 3:44 PM
Carter estimated that for every physical ounce of gold traded, there are 42 “paper” ounces traded. He believes that distorts underlying physical demand for gold, and consequent price trends.
The Volcker rule could bring more transparency to gold markets, said Carter. But he added: “I’m skeptical. If the new rule had any teeth to it, the banks wouldn’t have agreed to the change.”
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