Comment Text:
Dear Chairman Gensler and fellow Commissioners:
I am pleased that you have taken it upon yourselves to perform a thorough investigation of silver trading. However, I was disappointed regarding your proposal of a 5,000 contract position limit in such a relatively small market. In my studies of economics I learned that an unfettered free market in real product is the best method to determine its actual price which then can lead the producers to either slow or increase production. Giving non-producers a 5,000 contract limit (representing 25 million ounces of silver) means speculators can move the price of silver in any direction they choose. I understand this to not only be illegal as it is a manipulation but also dangerous in the case of silver which is a vital commodity to our national defense as well as a multitude of industries.
I am sure you are aware that a contracting ability representing 25 million ounces of silver (i.e. 5,000 contracts) is greater than what 99% of the world's silver producers or consumers make or use in a year.
So I ask you, our commissioners, to institute a 1500 contract position limit in silver instead of lending pricing power to speculators that a 5000 contract limit would clearly accomplish.
