Comment Text:
Setting a position limit for silver shorting at 5000 contracts (25 million oz.) can only be a done as a favor to JP Morgan. Few miners or silver users are dealing with silver at those quantities, and few if any would be interested in hedging at those levels. Only JP Morgan and other money centered banks deal in those kinds of numbers with unbacked contracts for the purposes of market manipulation.
This may also serve as a source of corruption. Allowing money center banks nearly unlimited access to futures contracts could serve as a form of bribery. All that would be necessary is for the bank to signal their intent to drive down the price to “interested parties”, who could then piggy back on the manipulation, thus pocketing substantial sums for a few minutes effort for an investment of just a few contracts.
Unless you’re proposing to support market manipulation and corruption, please set the limits at 1500 contracts or 7.5 million oz. Thank you.
