there is limits on Silver longs but not shorts??? how is that fair
this letter admits the existence of fraud and manipulation in the silver futures market!
How so? They admit that no manipulation to the downside could exist as long as investors have "unrestricted access" to buy silver, but they admit that there are position limits that prevent that from taking place!
On p. 5, they write:
"Because there is unrestricted access to the market, many knowledgeable and well-capitalized traders would readily buy any silver offered at artificially low prices. The buying by these traders--buying that the alleged manipulators would have no way of preventing--would quickly cause the price to rise to its appropriate level."
However, on p. 8, they contradict that by stating:
"The Commission's guidance on speculative position limits focuses primarily on the spot month because, in our experience, physical delivery futures markets, such as silver, are most susceptible to threats of manipulation during the spot month."
In other words, they admit on page 8 that limits exist that prevent large investors from buying silver as they suggest they could do on page 5!
In other words, they are so twisted, that they believe it is a manipulation to buy physical silver!