Comment Text:
10-005
COMMENT
CL-00331
From:
Sent:
To:
Subject:
Pete
Friday, April 23, 2010 3:49 PM
Metals Hearing
Comment on establishing firm limits on PM futures trading.
I hope this email address reaches your comment section. I found no
reference to Precious Metal Limits on your home page. I prefer going on
record in a more formal setting.
Thank you for providing a forum for comment on the consideration of
establishing firm position limits on PM trading. As a small investor in
mining companies and the raw metals, I have been discouraged by lack of
consistency between what should be rock hard fundamental drivers and the
actual prices seen for gold and silver on your exchange. I believe the
prices are highly impacted by the fact that there exists large
speculators bidding as commercial traders. This concentration of
positions offers the potential for manipulation and leaves a small long
investor at the mercy of powerful interests that have no interest in
supply and demand price setting. I do not think it is in the best
interest of our markets to sacrifice a sense of honesty for the extra
liquidity the current system is said to support.
Please establish position limits for gold and silver that reflect real
world quantities of these metals being bought and sold for beneficial
purpose. Also, I consider it necessary for you to abolish exceptions
for the purpose of hedging against derivatives. Most of all, please
ensure that transparency is provided so as to eliminate speculation that
prices are being manipulated by concentrated trading by unknown entities.
Thank you for the Hearing and an opportunity to comment.
L.N. Peterson
Spokane, WA
