Bjerknes

"Top Economist"
Mar 16, 2004
116,509
is it then not just an obligation or a future with the gold as Collateral :shifty:
damn is hard for me to understand and explain in english :(
A futures contract is traded on exchanges. They have gold and silver futures contracts on the COMEX that are standard contracts of certain specifications and require you to fork over margin requirements (basically you have to give them your money first so they are sure you can cover losses). This bill targets over-the-counter gold and silver contracts which are not located on an exchange and do not have margin requirements.

A forward contract is a non-standardized contract that is not traded on an exchange. If I go to you and ask you for a certain amount of gold to be delivered to me on a certain date, that is a forward contract, not a futures contract.


It has nothing to do with import/export and actual trading of goods between nations.

It deals with the US stock market, in particular the trading of gold and silver as a commodity.
Not stocks, commodities; the difference between over the counter and exchange-based trading.

The nice thing about OTC is that you can buy a single silver coin from whatever broker you want. It's just like going to the store. You have freedom of choice.

Of course, the real danger is OTC derivative contracts in MBS and other securities worth quadrillions, but the government doesn't care about that, of course.
 

Dostoevsky

Tzu
Administrator
May 27, 2007
89,118
those are so scary :scared:
Yea, but I still love them :p

You never responded to my post in the financial thread!
I visit it regularly bro. I was going to, but then I saw some article you posted and decided not to because I wanted to read it first, and I didn't much time. I had to study and I don't have much time now either. I'm into banking now, so it's nice. I'll reply eventually, no worries, I love talking about it.

Humans are worse than animals. :D
 

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