Comment Text:
10-005
COMMENT
CL-00764
From:
Sent:
To:
Subject:
Jon Nimtz
Monday, April 12, 2010 2:08 PM
Metals Hearing
My brief comments on the hearing
Dear Sir;
I watched the entire CFTC hearing on the metals with great interest and developed even more
cause for concern than I already had on this topic, which was already quite substantial. Iwishto
thank you for providing the investing public with the chance to watch the hearings, and to make
their comment on the issue of position limits for precious metals.
It certainly appears there are many legitimate areas for concern and additional aggressive
oversight and enforcement action by the CFTC, and I found the testimony regarding a
whistleblower in the silver market to be stunning in the level of detail and honesty about what JP
Morgan Chase is doing to the investing public, and how they are fleecing the public for millions of
dollars. I have wondered why it took this long for someone in the business to come forward and
testify to something that my circle of dozens of investing friends has seen occurring for years. This
potential fraud is on a scale so massive, it dwarfs the Bernie Madoff Ponzi Scheme, and the CFTC
needs to vigorously address these concentration and manipulation issues before a failure to deliver
sets off a massive worldwide eruption in the price of precious metals that appear to be manipulated
in every sense of the word.
The price of precious metals should be allowed to be freely discovered in the open market by
thousands of buyers and sellers, not 1-2 concentrated short sellers, who are allegedly hedging their
shorts with paper longs in another market, that testimony by Mr. Christian and Mr. Douglas made
quite clear is a paper Ponzi Scheme trading paper metal at 100 times the underlying physical metal
being held. This isa recipe for disaster on the COMEX.
Iwould like to see two things done. Please establish a speculative position limit in COMEX silver of
no more than 1500 contracts. Please restrict any hedging exemptions from those limits to
legitimate hedgers. Please stop the levels of concentration in COMEX silver futures that have been
experienced over the past few years on the short side of the market.
Secondly, any short seller of precious metals should be required to put up large, verified physical
deposits of the precious metal to assure they can deliver. Cash settlement is nota legitimate way
to close outa contract in a physical delivery market. I would suggest 50% of a short position
would be an appropriate level.
Thank you so very much for your openness and willingness to provide free trading markets and
eliminate concentration and manipulation.
Sincerely,
Jon
Nimtz
7468 E. Raintree Ct.
Scottsdale, AZ, 85258
CONFIDENTIALITY NOTICE:10-005
COMMENT
CL-00764
This e-mail contains confidential information and is intended only for the
individual named. If you are not the named addressee, you should not
disseminate, distribute or copy this e-mail. Please notify the sender
immediately if you have received this e-mail by mistake and delete this
e-mail from your system. E-mail cannot be guaranteed to be secure or
error-free as information could be intercepted, corrupted, lost,
destroyed, arrive late or incomplete, or contain viruses. Neither the
sender nor CoBiz Financial and its subsidiaries accept liability for any
errors or omissions in the contents of this message which arise as a
result of e-mail transmission.
