Comment Text:
Dear Sirs, I am justifiably concerned, having at times been financially traumatized by the actions of unidentified persons or institutions manipulating the price of silver. That the present CFTC fails on enforcemnt of rules on position limits is very obvious.
There is no point in my reinventing the wheel when my feelings regarding this situation can best be expressed by reproducing Mr. Ted Butler's thoughts on the matter. I reproduce them here:
"Dear Chairman Gensler and fellow Commissioners:
I urge you to approve the staff’s proposal on position limits, including limiting exemptions to bona fide hedgers. I would ask you, however, to readjust the proposed formula in silver. The current formula would result in a position limit of over 5,000 contracts for any single speculator, on an all-months-combined basis. 5,000 contracts is the equivalent of 25 million ounces of silver. This is too high of a threshold in light of the realities of the world silver market.
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 1500 contract (7.5 million ounce) position limit for silver.
Respectfully submitted,
Ted Butler"
I subscribe to all of the above and repectfully request your reform. respectfully, Dan E. Antenen
