ted butler still thinks the cftc is going to do something meaningful about position limits in the silver market. I hope he's right...

This is an excerpt from an article for subscribers on Oct. 4, 2009. I am publishing it here because I think it will add to the public debate on legitimate position limits. For the full article and access to all articles, please go to www.butlerresearch.com

…I was careful to say that the coming announcement of the actual number of contracts for hard position limits in most commodities would be anti-climatic. That’s because the current accountability limits do not appear to be excessive. There is one market, however, in which the announcement will be of high drama, no matter what the proposed number. I speak of COMEX silver futures. Of course, I have no knowledge of what the CFTC will propose for the all-months-combined hard position limit in silver. I only know what the number should be – no more than 1500 contracts (7.5 million ounces). I know that the number must be much less than the current 6,000 contract limit, as this limit makes no sense. I have demonstrated in the past why the current accountability limit in silver was out of line with every other traded commodity, in terms of annual world production and compared to above ground inventories, in the case of gold. As a result of this past article, in July, many hundreds of readers wrote to the CFTC asking that the position limits in COMEX silver be reduced to no more than 1500 contracts or to please explain why not.

http://news.silverseek.com/TedButler/1247586939.php

In August, hundreds of readers again wrote to the Commission about the issue of position limits and concentration, this time in response to the CFTC’s request for public comment at the conclusion of the three-day hearings on the matter. Fully 90% of the comments had to do with the short concentration in COMEX silver and gold futures. http://news.silverseek.com/TedButler/1251206905.php This is an issue that must, and will be addressed.

http://news.silverseek.com/SilverSeek/1255368577.php