Comment Text:
Feb 25, 2011
Dear Chairman Gensler and fellow CFTCommissioners:
Please strongly consider approving 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 way 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. I am aware that free markets are of value and strongly encourage that we do everything possible to have a free silver market. Thank You.
Please institute a 1500 contract (7.5 million ounce) position limit for silver as suggested by Mr. Ted Butler.
Respectfully yours,
___________________________
William B Bickers
1512 NW Canyon Dr
Redmond, OR 97756
(541) 548-7523
[email protected]
PS:
Note that I am sending CC’s of this letter to my elected representatives in the House/Senate and consider their actions and any potential voting record on this and similar issues of great importance to our countries financial future.
