Comment Text:
The issue of fair price discovery and and a market free from manipulation is one in which any public regulator must take a keen and pro-active stance. The eyes - not just of America - but of the world are once again on the CFTC, as the issue of position limits in silver is before it. Having failed in the past to regulate OTC derivatives when given the opportunity, it would be shameful and entirely unacceptable if now, given this opportunity, it failed to limit positions on silver contracts to a fair and appropriate number. This number should be no more than 1500 or 7.5M ounces. For over two years, I and many others have argued that limits on positions at the COMEX should be no more than 1,500 contracts. To its shameful discredit, the CFTC elicts public opinion but takes no action and the obvious manipulation of silver by a handful of banks has continued. The current proposed limit of over 5,000 contracts will not solve this problem of manipulation and concentration of interest in the hands of the few which - by definition - amounts to a fraudulent rigging of the price discovery mechanism in a publicly regulated yet privately owned exchange. This is the antithesis of a free market and the world watches with interest. We hope the CFTC understands the situation it now finds itself in and that its Commisoners at last understand their public duty without any further procrastination. The 1,500 contract limit is a fair an appropriate amount.
