Comment Text:
I am a precious metals/commodities investor. I am writing to urge you to set position limits in all commodities markets, but more importantly, to set the limits in silver at far less than the suggested 5,000 contracts. In my view, 25 million ounces of silver (5000 contracts) is not a realistic "limit" at all, given that only three companies on earth produce that much silver in an entire year. There cannot possibly be any legitimate need for hedging at this level of position concentration; anyone demanding higher limits is simply attempting to influence the market illegally.
Please, it's time for real regulation and real reform. The silver market manipulation has gone on for years now, while the CFTC has stood by and found excuses to do nothing. Please consider a realistic maximum number of contracts (perhaps 1500 to 2000), with exceptions for LEGITIMATE HEDGERS. But don't continue to protect the concentrated short positions of a few banking institutions who are manipulating the market while they only pretend to be hedging. Otherwise, you're just setting the freeway speed limit to 200 MPH, while congratulating yourselves that you're "protecting the public."
