The recent shocking collapse of MF Global is beginning to show the value and strategy in gold investing.
Posted by Adam King on November 18, 2011
As MF Global Takes Down Others, Gold Investing Will Win
November 18, 2011 – The recent shocking collapse of MF Global is beginning to show what will become wide-ranging repercussions this morning that prove the value and strategy in gold investing. CME Group, a futures marketplace, has been drawn into the fray via the same CFTC that issued the ruling allowing the bad trade with customer money that ultimately brought MF Global down. And, yes, the same CFTC whose Democatic Commissioner called what has occurred at MF global “nefarious.”
CME was required to communicate immediately with the CFTC following any discovery of a shortfall in segregated client accounts. There is some question as to what CME knew and when based on communications belonging to the company.
This is the first of what will be many big implications of the fall of MF Global. It is rather astonishing news, especially after learning that MF Global can’t find $600 million of its customer’s money, but there is a serious and real potential that this is just the beginning.
MF Global’s customers have learned that lesson already. Finding out your account is with a “trustee” and can’t be liquidated will really wake you up. The banks and businesses that work with MF Global are learning that lesson now. The other owners of junk European sovereign debt, which seems to be ubiquitous throughout the industry, may have to learn that lesson in the future.
This is precisely the kind of economic climate for gold investing. The doubt in the markets screams for a tangible commodity to hold on to. Gold fits the bill for any willing to check it out. And this is a proven track record. Gold is up 22% year to date and those double digit earning are here to stay.
Gold buyers will weather this storm much better than traders. The general rule of thumb is everything in the markets is exposed. As the days roll on and we see more responses to MF Global, the interlocking relationships will become clear. Gold is more than a safe haven in this market—it’s a rocket ship. I strongly suggest you get on board.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
Categories:
US Gold Market
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