Comment Text:
Dear CFTC Chairman Gensler and Commissioners:
Given the realities of the world silver market, which our business depends upon, we applaud the current proposal on position limits, including limiting exemptions to bona fide hedgers.
However, we urge you to tighten the current formula down to 1,500 contracts, because the proposed 5,000 contracts (equivalent to 25,000,000 ounces of silver) would still be large enough to allow a speculator to single-handedly move or manipulate the market.
Please note that the silver market is very small compared to the gold market, and accordingly it does not take much to move it. Considering that there are only 3 miners in the world who produce enough silver to fill 5,000 contracts per year, and only a small number of companies who consume that much, any speculator holding more than 1,500 contracts would have the power to distort the market. The purpose of speculative position limits is to prevent such a circumstance.
Please reduce the proposed formula for silver position limits down to 1500 contracts.
Sincerely,
Old Glory Mint
