JP Morgan now accepting gold as collateral http://www.reuters.com/article/2011/02/07/jpmorgan-gold-idUSLDE7161IO20110207 So physical gold only - not ETF! :lol:
Actually have a think about the implications of this - JP Morgan just invented a reason for gold NOT to go down in price - they'll be holding it as collateral against obligations owing!
Or they could be trying to get the suckers in, then crash the gold price and force the liquidation of these metals to themselves (at the lower price), in the mean time making the debtor pay up the difference. Slam
So since they are able to decide what their assets are worth regardless of market value what does this mean actually? Would this be the US version of China's suggestion its people should hoard gold?
Let's be honest here. ALL the major market players will talk the talk on Gold and Silver and sure as hell behind the scenes, they're using the depressed price to stack their little hearts out. I don't doubt for a second that behind many of the major Gold bears lies a stacker, hoping the sheeple will keep believing as long as possible before the game is up.
True, the smartest way to play the BULL on metals is to be openly a BEAR and to keep buying stuff up secretly.
Well i always thought that gold was useless compared to stocks. Before you sell any though just give me a quick look... for the aesthetic qualities only of course.
It is a good deal. I for one, will pledge every ounce next time I need a loan from JPM. Very decent of them.
The JPM website says they will accept ETFs as collateral and doesn't explicitly say they won't take GLD. I have an email question in to clarify this.
The quote is a gaming quote, but goes way further back than this. [youtube]http://www.youtube.com/watch?v=qItugh-fFgg[/youtube] It's basically internet pop culture and I think Blizzard had an affinity for it when they employed the cheat for WC3. Sorry, that was waaaaaay off topic - just clarifying
Confirmed that JPM will take GLD as collateral. I don't see any implication, it just locks those shares with JPM until you repay/meet your other obligations.
Now what would have implications is if in future they did drop GLD as acceptable collateral. Thanks for clarifying the position on ETFs - I'd seen this news reported in a few places and a number had jumped to the conclusion (as I did) that the use of the word physical meant ETFs were excluded. Quite possible they've accepted GLD all along and the addition of physical is the only new thing.
Of course they'll take GLD as collateral, even if the gold is not there but there is still dollar value in GLD shares.
