Comment Text:
Dear Chairman Gensler and fellow Commissioners:
I am completely in favor of the proposed position limits on silver with the exception of the proposed formula for figuring that limit. That formula would currently allow a single speculator to hold 5000 contracts--or 25,000,000 ounces of silver--which is way too high considering fact that there are three producers and few consumers of silver who deal in such quantities.
A pure speculator that holds silver derivatives in quantities that exceed the vast majority of producer or consumer capacities has a tremendous ability to control market prices--exactly the issue that the imposition of position limits is intended to mitigate. I believe that a more responsible position limit for silver would be 1500 contracts.
Respectfully,
Bradley Davis
