Comment Text:
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. Please institute a 1500 contract (7.5 million ounce) position limit for silver.
Based on the current annual production of the top miners there is simply no need for a hedge greater than this at one time. Anyone needing more than 1500 contracts clearly intends to manipulate the price either up or down. It is time that the dirty secret of the silver manipulation is exposed in greater details. Andrew McGuire started it and by telling your office exactly what the price would do, but it fell on, for the most part, deaf ears. This past week alone, Feb. 20-24, shows that something is not right with the market.
Many people feel that your office is corrupted and have intentionally not done anything about price manipulation in the precious metals market. I do not know if that is true or not, but what I do know is true is that many of my friends no longer trade silver or gold because they feel the deck is stacked against them. In the end as more investors stop trading it will hurt firms that depend on commissions to trade. That should be encouragement enough to add some type of confidence in the market and position limits of 1,500 contracts would do that.
Your office is in charge of this issue and if you cannot manually enforce your own rules then position limits are the only way to do it. This method is cheap and should be effective. Please add real limits of 1,500 contracts.
Respectfully submitted,
Scott DeMonte
