OTC trading will be banned, and while there are still ways for individuals to bet on gold, it certainly makes things harder. The real question is; why? There's no motivation for the regulation anywhere on the internet, and probably not anywhere else either.
I'm sorry if this makes me sound like a Paulbot, thinking the government is conspiring against me, but isn't it strange that the government is regulating the only way to escape the dollar? It's well-known that when people don't trust the currency in the country they are in, they tend to escape by investing in precious metals such as gold and to a lesser extent silver.
If people - and by people I mean regular American moms and dads - lose trust in the dollar, they will simply keep their savings in gold instead, leaving the dollar weaker. A "run" on the dollar could have a disastrous effect on the US economy and the government's ability to borrow money.
Is the whole regulation all about protecting the US dollar from such a run? I'd definitely say so. The rich (to which Dodd and Frank belong) can still protect their money by buying gold, but it becomes significantly harder for regular americans. This is really about propping up the dollar, keeping its value artificially high.
This shows the desperation of the US government; now it's not about solving the fiscal crisis any more, it's about forcing Americans into holding a currency that is on the brink of collapse.
I'd imagine we'll see more of this kind of regulation soon, as the debt problem becomes more severe.
Some day soon I'll go through what will happen if the dollar does collapse, and which country will stand as the winner when the dust has settled (hint; it's an old enemy in the east).
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