Comment Text:
The CFTC was charged with regulating the commodities industry, and in particular the position limits on silver. The limit set of 5000 contracts is unreasonably large as it represents a considerable fraction of the silver mining output, and the net effect since the imposition of this limit, has not been noticeable, because it is too big. In effect it has allowed major banks (backed by the US Government as too big to fail) to continue to manipulate the silver market causing violent swings in price, and flushing out weak longs from the market, presumably so that they can take up any positions released at an advantageous price. In effect, CFTC has ignord their legal requirement to regulate the market by placing an artifically high limit of 5,000 contracts. It would seem that manipulation by the 4 big banks and the smaller players would be reduced by setting the limits below 1000 contracts in silver.
