Comment Text:
10-005
COMMENT
CL-02432
From:
Sent:
To:
Subject:
Logan, Randal
Monday, April 5, 2010 5:52 PM
Metals Hearing
metals position limits
I write to provide recommendations for ending the silver and gold price manipulations currently ongoing on the
COMEX. Firstly, they simply must end. No person or entity has a right to fraudulently sell what they do not, and
can never, own. It is simply not possible for JPMorgan chase, for example, to come up with 150,000,000 ounces
of silver to deliver to COMEX longs, at anywhere near current prices. You know this. I know this. And, since the
revelations of the March 25, 2010 hearings, thousands and thousands more citizens of the U.S. and the world
know this. To continue this mockery of the financial system is very similar to the Madoff debacle, which can only
end badly.
How to end it? That is a tough one, because someone will get badly mauled. But, here is my solution:
Require JPM (or whoever is the highly concentrated-short (C-S)), to immediately buy back all its short positions.
Some longs may actually accept dollars instead of metal, but to the extent that longs want delivery of actual
metal, force the C-S to deliver actual metal, at the agreed-upon price (as evidenced by the futures price of each of
those contracts). This may takes months or years, but they must go into the market and buy real silver to deliver.
The reason it must be 100% of its short positions, and not to some new "limit" is because there will be no silver in
the marketplace by the time the limits are reached, and there will be many innocent "bagholders" still left with
nothing. If the long agrees to accept some other commodity (gold, etc.), or some other financial entity, such as
shares in a silver or gold mining stock, the values used would be that other commodity, or stock price as of the
day the futures contract went to delivery. The C-S may be forced to pay a much higher price for that commodity
or stock, but that is the price of fraudulence.
The C-S would not be allowed to short the commodity it is trying to buy back until its positions are 100% even. At
that point, proper limits, as deemed by the CFTC would be instituted henceforth, with no exclusions to those
limits, even if that entity wants to claim, dubiously, that it is a "bonafide hedger." Bonafide hedgers should only be
entities that actually mine the product, and have proven reserves, or actual owners of a quantity of the metal that
can be proven.
Randal J. Logan
citizen
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