Larry Williams Warns Benzinga Users on FOREX (GOOG, GLD, IAU)

In an interview on the Benzinga podcast, famed commodities trader Larry Williams warned of trouble in the foreign exchange market. When discussing how he would handle financial regulation, he said, "I would go to the people that I really respect in the industry and ask, 'Who are the bad guys?' They know who they are. I know who the bad guys in the commodities business are. You don’t have to write all these regulations you just find out who the bad guys are and go after them. But that’s not how government works. It’s all a bandage after everything happens. I can see right now where some things are going to happen. I use to work for some of those people but maybe now they’ll get their financial education and get burned." When asked where those "bad things were going to happen," Larry responded definitively, "Well, I think the Forex market is an opportunity for disaster. People have been told that it’s free commission and it’s not. I trade the same thing on the globex for a few bucks and they’re paying 30-40 dollars for the same trade. It just strikes me as unfair to the public." Larry also discussed why he preferred to trade in actual commodities rather than ETFs that track or are backed by them, such as GLD GLD and IAU IAU. He said that he wanted to deal "with the principal, not the agent." He noted the inherent benefit of owning commodities as something people need, frankly explaining that while you can go your whole life without a share of Google, Inc. GOOG, people have a need for corn, soybean, oil, gold, etc. Check out the rest of Benzinga's exclusive interview with Larry Williams here. Watch experts project the week ahead, analyze new strategies, and take your questions LIVE: Market Toolbox TV