Comment Text:
Dear Chairman Gensler and fellow Commissioners:
Whereas I agree on proposed limits on speculative contracts in silver, including exemptions to bona fide hedgers, I am urgin you to further limit the proposed formula in silver to about 1,000 contracts. It seems every frequently when the market is just overwhelmed with huge speculator contracts which cause the price drastically. Unfortunately this is timed exactly when there are few participants in the market and so places unfair advantage to such speculators who are thus able to "manipulate" the price. 6
There are only three mining companies in the world who produce more than 25 million ounces of silver per year and only a similar number of industrial consumers using more than that amount. Any speculator holding an amount of silver derivatives greater than what 99% of the world’s silver producers and consumers make or use in a year would have inordinate pricing power. The purpose of speculative position limits is to prevent such a circumstance.
Please institute a 1000 contract position limit for silver.
Respectfully submitted,
Gene Jurado
