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Dear Mr Chairman and Fellow Commissioners(Full Article):
I would like to bring to your attention a commentary published by Adrian Douglas of G.A.T.A. and the proprietor of MarketForceAnalysis.com entitled: Silver Breaks Its Golden Shackles.
There is no doubt that you have seen the closing prices of silver at the comex and they show that the spot price is higher than all the future months as investors sense that the supply of silver in the near future is cloudy at best or not existent , and that they would rather have the physical metal today. The month of January saw persistent selling by the bankers of un-backed silver future contracts, causing the spot price of the metal to fall and yet the resultant action of this is the silver metal goes into complete backwardation at the beginning of February? This certainly does not make any sense to me especially with the comex stating over and over again that the futures market is a price discovery mechanism! This is the first time ever in recorded history that silver went into backwardation based in USA dollars at the Comex although it has been highlighted by James Turk at GoldMoney.com that the LBMA has been experiencing backwardation in silver in their forward contracts these past few months.
I know that you have asked for another 60 days of public input on the matter of position limits on the precious metals. I believe that you have been bombarded with public input on this subject for the past several years, so I doubt if you could glean any new information on something that you do not already know.
In 2008, the bankers caused massive damage to our financial system. They used public money and massively shorted precious metals like gold and silver to multiyear levels of production. It is now time for the CFTC to answer one very simple question:
How did you allow one or two banks to massively accumulate such a huge short position in silver over several years, and thus manipulate the silver market and then state this is legal under USA law?
During the fall of 2008 there was a disconnect between the paper price of silver and the physical price and it is going to happen again!. If the comex defaults it is under your watch and you cannot blame us for not informing you of why turmoil will pervade the USA financial landscape.
I urge you to solve your dilemma immediately.
Harvey Organ.