Somchai, I think the end of Forex trading in gold and silver is good news because it will stop the use of pm derivatives on the Forex which is a good thing.

Bill H. writing in MIDAS tonight thinks it could be fantastic for pm shares.

Bill H:

"To all; the recent notification from FOREX that Gold and Silver OTC trading for individuals will become illegal after July 15 is a real shocker. Tyler Durden at Zerohedge commented on this yesterday http://www.zerohedge.com/article/trading-over-counter-gold-and-silver-be-illegal-beginning-july-15 . I have a couple of brief observations, first off this is a real shocker to me but maybe the real reason behind it is to prevent investors from making a "cash call" because the vaults are just about empty. Secondly, as others have observed this may backfire because this demand may simply shift to cash and carry and actually create more of a physical drain.

But here is where the real rub may end up, buyers of futures contracts do so for the leverage, they want bang for their buck and as much as they can for as little capital up front. So where do these traders turn to?...maybe they step up and buy Gold and Silver mining shares on margin? They get operating leverage from the mining entities and financial leverage through the use of margin. Of course they can use options on these stocks but that's just a kicker and a story for another day. The point is this, if FOREX is diverting demand because the physical cannot be delivered I think they have now inadvertently kicked off the phase we all have been anticipating, namely the 'mania phase"!

Let's see what happens here but all I can say is "WOW what a setup!". The hedge funds have set up shop by shorting mining stocks until the cows came home and now the "authorities" have possibly inadvertently diverted demand that will roll over these shorts like a freight train! This by no means is a "lock trade" and I would like to watch for signs that this in fact has been set in motion but I certainly can see the possibilities here. After all these years of making money in the miners but always feeling like THE move got aborted and the rug pulled out from under us, THIS really has the potential to be that "little extra wind" behind our sails that could create havoc. Can you imagine a physical market where sellers are scarce and a share market where shorts (both legal and illegal) must compete with entities trying to enter because they cannot get leverage elsewhere? Sounds like rocket fuel that's too good to be true? Maybe it is, maybe it isn't! Regards, Bill H."