On Friday, November 27, 2009 the following letter written by a London-based silver trader to CFTC Commissioner Bart Chilton appeared in Friday's Midas report. The Golden Truth posted this account for those who do not subscribe to the Midas Report.
Anyone who follows the gold and silver markets knows about the severe imbalance which has occurred for several years between the size of the short interest in gold and silver futures vs. the amount of physical gold and silver sitting in Comex warehouses. As an example, JP Morgan and HSBC combined (and it's mostly JPM's short) have a short position which represents 199 million ounces. This is nearly 4 times the amount of silver currently listed as "registered," or available for delivery.
In any other instance,with any other commodity, the CFTC (Commidity Futures Trading Commission), which is the Governmental body which regulates commodities trading, has always enforced "market concentration" regulations and restricted the size of the long or short position which can be held by any firm in that specific commodity. There is usually a standard applied which measures the amount of short/long interest in a given commodity vs. its available supply on the exchange.
To read the whole article go to:
The Golden Truth: A London Silver Trader Challenges The CFTC
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