Comment Text:
I am retired, and my wife WOULD retire, if we could afford to lose her small income. Until 2008 we had made a small (but important to us) income investing in silver stocks and small-time trading of futures. When J. P. Morgan was allowed to crash the silver market by dumping 180,000,000 ounces of PAPER silver, we lost much of the money we hoped to live on in the future, as I have no pension, and my wife's is so small it would not cover utilities. I believe Morgan made a lot of money doing that, but whether they did or not, I know a LOT of small investors LOST money and Morgan should never have been allowed to dump that paper silver on the market.
The only thing I can think of that would protect small investors, in the future, is position limits that would prevent big financial entities from manipulating the silver market, as many of us believe they have done with impunity for decades.
1500 contracts has been suggested as a limit, but I think that is MUCH TOO HIGH. IMO, that far exceeds what any legitimate miner or user would need for a hedge, but if there were such a need, I am sure an exemption would be made for them.
The point is that Morgan, and other financial institutions, ought not to be allowed to rig a market that is supposed to DISCOVER a proper price, not 'fix' it.
If they are allowed 1500 contracts it would still be too high a limit, but a vast improvement on the current situation.
R. A. Fonda
