Comment Text:
February 25, 2011
Dear Chairman Gensler & Commissioners:
This communication is to request passage of the staff recommendation on position limits.
I would also emphatically recommend approval limiting exemptions for legitimate hedgers, especially in the silver market. If the commissioners would review the size of each market in relation to position limits over all months in that market, the silver market would stand out as a significant example of inordinate pricing power belonging to a few speculators. One would only have to review the major price movements over the month of February 2011 for confirmation of significant profit for the few at the expense of the many. The timing of these price movements, their regularity and frequency, is astoundingly manipulative, and apparent with only a cursory inspection.
With a position limit of 5000 contracts, a speculator controls 25 million ounces of silver. Presently there are less than a dozen producers and consumers using that amount or more. The pricing power of a single exempt hedger has, even at this moment, a debilitating effect on the silver market.
I urge the commission to consider the will of all investors and institute a 1500 contract position limit, and specifically in the case of silver, without exemptions.
Respectfully,
Gary Miller/Private Investor
