Comment Text:
Honorable Chairman and Commissioners of the CFTC:
RE: Position limits on Silver
Please consider adjusting your position limits on silver to 1,500 contracts per organization, total for all delivery months.
The futures market, as you know, was set up to allow legitimate businesses that need or supply the commodity to hedge themselves against price fluctuations, allowing them to run a business and not speculate. We welcome the liquidity that speculators bring to the commodities markets. But 5,000 contracts is too high and enables manipulation by deep-pocketed speculators. Nobody in industry has the need to hedge silver to that extent. It would be best for markets to have a true price discovery mechanism, not too high, not too low, based on real world supply and demand.
I am not in business to speculate, nor am I qualified to compete with speculators and professional intuitional investors. I cannot operate my business in a market where manipulative speculation can have such a profound impact on prices of raw materials. I need market-set prices, driven by supply and demand. The high position limits are impeding our capitalistic marketplace.
Sincerely
Jerome Mahaffey,
Owner: River3 Productions, LLC
