DislikedDuring end of this April before the big fall of silver price, I heard that within 5 days US government raised 8 times the margin level to trade silver.
This is one of the reason causing silver price 'crash'.
Now US is changing regulations again, after 15th July US residents are prohibited to trade spot gold & silver.
Will this have an effect on gold & silver price..?Ignored
Who will be the buyers when people will be forced to sell their silver/gold positions at July 15th? Is the usual buyer side expected to take the load? If yes, that would certainly lead to a sell-off.
If one is to try to make a trade based on this recent info, I see the following possibilities:
1). Take a short position at a favorable point with a wise sell stop some day before July 15th and let the profits run if there is a sell-off.
2). Wait and see if a sell-off leads to a test of the ultimate support at $21 and eventually buy and hold long term at this point with a clever SL.
After googling around I'm not quite sure what this prohibition of trading paper silver and gold really means to the price. Some say the price could spike in both directions. And also, if the FED at some point announce QE3 (probably some time after July 15th) the price of silver and gold should rise due to the inflationary effect?
The conservative part of me says that I should go with 2). if trying to do a trade at all.
