Comment Text:
Dear Chairman Gensler and fellow Commissioners:
The proposed position limits of 5000 contracts, equivalent to 25 million ounces of silver, are so excessively high (compared to the world production of physical silver) that they would be totally ineffective toward accomplishing the Commission's charter to prevent gross and illegal manipulation of the silver markets. Protection of free market trading requires much lower position limits in the silver market.
Please institute position limits of no more than 1500 contracts for silver as soon as possible.
Also, please immediately investigate the sudden and dramatic increase of JPMorgan Bank's apparently illegal (manipulative) concentrated short position in silver from 19,000 contracts last month to 25,000 contracts this month (March 2011). How could this concentrated short position, representing over 25% of world production of physical silver, and controlled by just one bank, be viewed as anything less than "smoking gun" evidence of illegal market manipulation?
Also, please immediately investigate the outrageous COMEX approval of JPMorgan Bank as an official COMEX silver fulfillment vault this month (March 2011). This is like placing a wolf to guard the sheepfold, and places in the hands of JPMorgan bank yet another powerful tool to artificially manipulate the price of silver for their private profit. This maneuver smacks of illegal collusion between a regulating agency and the very entity that agency is chartered to regulate.
Now JPMorgan Bank can delay fulfillment of silver contracts to produce the appearance of a silver shortage to entice speculators into long positions, and then release to the market more than enough silver to fulfill those contracts at the last minute, causing a selling panic which drives silver prices down artificially so that JPMorgan can profit from their enormous short position. The timing of JPMorgan's sudden huge increase in their silver short position and their gaining approval to be a COMEX silver vault (which hardly appears to be random coincidence) demands swift and thorough investigation.
Sincerely;
