Investment Rarities: CFTC’s Position Limit Hearings Could Spell the End of Silver Price Manipulation

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When the Commodities Futures Trading Commission (CFTC) this week announced its March 25th public hearing on precious metals position limits, Chairman Gary Gensler may have signaled the end to an “unprecedented concentration of silver on the short side,” according to noted silver analyst, Ted Butler.

When the Commodities Futures Trading Commission (CFTC) last week announced its March 25th public hearing on precious metals position limits, Chairman Gary Gensler may have signaled the end to an “unprecedented concentration of silver on the short side,” according to noted silver analyst, Ted Butler.

In a posting on http://www.silverandgoldcoinblog.com, Butler wrote: “This public meeting is another step towards the possible resolution of silver manipulation. Hopefully, it will garner enough attention that it will encourage others to consider the issues at hand objectively.”

Butler said he has long contended that a number of concentrated short positions in silver in COMEX have artificially depressed the price of the precious metal. His data indicates the largest silver short contract owner is New York investment bank, J.P. Morgan, which holds approximately 40% of silver’s short position on the COMEX exchange, or 200 million ounces. Butler contends this short position is contributing to silver’s below market price.

“(Next) month’s meeting will be part of our ongoing look into how the Commission regulates futures and options markets on commodities of finite supply,” Chairman Gensler said in a statement. “Our July and August hearings on energy futures and options markets were very informative. We look forward to again hearing from interested members of the public on the important metals markets.”

Adds Butler, “Let’s openly discuss the price impact that a short position equal to 25% or 30% of annual mine production (has) on the price of any commodity. That’s the promise that the upcoming hearing holds – clarification.”

The CFTC hearing takes place at 9:00 a.m. on Thursday, March 25 and will be open to the public and webcast via the Internet. An audio of the meeting will be available via a listen-only conference call.

For the complete text of Butler’s remarks, visit the Investment Rarities’ “Pedal to the Metals” silver and gold blog at http://www.silverandgoldcoinblog.com

ABOUT INVESTMENT RARITIES, INC.: Investment Rarities Incorporated (IRI) has been helping clients preserve wealth with gold and silver for over 35 years. The company has delivered over two billion dollars in coins and bullion to their customers. For more information visit Investment Rarities, Inc. at http://www.investmentrarities.com. Call toll-free at 1-800-328-1860. Follow IRI on Twitter at http://twitter.com/IRIMetals. Subscribe to IRI’s YouTube Channel at http://www.youtube.com/user/InvestmentRarities. Visit the Investment Rarities’ “Pedal to the Metals” silver and gold blog at http://www.silverandgoldcoinblog.com

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Carey Bohn

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