Comment Text:
Dear Chairman Gensler and fellow Commissioners:
As a private investor I feel I have NOT been dealt with fairly in what I consider a manipulated market. A level playing field is essential for investors to feel confident in making investments based on fundamentals of supply and demand. That is simply not possible when the markets are manipulated by bullion banks with access to billions of dollars to send the prices up or down by in effect rigging the markets with their bids or withdrawal of same that are in no way related to actual hedging or supply needs.
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,
Myron Martin
