Ted Butler Urges Everyone To Submit A Response To The CFTC On Silver Manipulation Schemes

Tyler Durden's picture

By Ted Butler of Silver Seek

Speak Up and Be Heard

On several occasions over the past couple of years, thousands of you have taken the time to write to The Commodity Futures Trading Commission (CFTC) concerning the issue of position limits in COMEX silver.  Now the CFTC has solicited your opinion again for what will be the last time.  The current open comment period, through March 28, is the culmination of all the public hearings and commentary over the past two years.  Your comments on silver position limits make a difference.  Private legal counsel and even sources within the Commission have assured me that there can be serious consequences for the CFTC should they ignore the will of the public, when that public opinion is reasonable.

The silver market has been manipulated by a concentrated short position.  You can’t have a manipulation without a concentrated position.  The only effective way to prevent concentration is by enacting legitimate speculative position limits.  The key is to set the speculative position limits at the right level; not too high, so that speculators control the market, not too low as to restrict trading liquidity.

The proposed position limit for silver comes out way too high, over 5,000 contracts.  It’s too high because it gives speculators too much dominance over real world producers and consumers.  5,000 contracts is the equivalent of 25 million ounces of silver.  There are only three mining companies in the world who produce more than 25 million ounces of silver a year.  In addition, there are only a handful of silver consumers in the world who consume more than 25 million ounces a year.  There are hundreds of important miners and consumers who produce or consume less than 25 million ounces of silver a year.  Therefore, it makes no sense to empower any speculator who comes along with the ability to hold, long or short, more than the amounts most of the important world producers and consumers make or use in a year.

The proper level for position limits in silver is about 1500 contracts or 7.5 million ounces.  That amount is still larger than what the vast majority of the world’s silver producers and consumers make or use in a year.  If you agree, please make your opinion known to the Commission.  It’s crucial that you do.

Here’s my letter.  Use any part of it or just the last sentence on a copy/paste basis if you wish.

Dear Chairman Gensler and fellow Commissioners:

I urge you to approve the staff’s proposal on position limits, including limiting exemptions to bona fide hedgers.   I would ask you, however, to readjust the proposed formula in silver.  The current formula would result in a position limit of over 5,000 contracts for any single speculator, on an all-months-combined basis.  5,000 contracts is the equivalent of 25 million ounces of silver.  This is too high of a threshold in light of the realities of the world silver market.

There are only three mining companies in the world who produce more than 25 million ounces of silver per year and only a similar number of industrial consumers using more than that amount.  Any speculator holding an amount of silver derivatives greater than what 99% of the world’s silver producers and consumers make or use in a year would have inordinate pricing power.  The purpose of speculative position limits is to prevent such a circumstance.

Please institute a 1500 contract (7.5 million ounce) position limit for silver.

Respectfully submitted,

Ted Butler

The instructions for submitting a comment can be found here http://comments.cftc.gov/PublicComments/CommentForm.aspx?id=965  All that is required is your first and last name and email address (repeated) and to use the validation code before submitting your comment. Your email address will not be published, but you will receive a confirmation that your comment was recorded. If you have difficulty entering your comment electronically, you can mail it in, but I just did it and I’m not a computer maven.

Please remember that your comments and name will be published for the record. Accordingly, please be professional and limit your comments to position limits, the issue at hand. Also, please comment only once, but be sure to comment. It is important that the Commission knows your opinion on this matter. You can view the public comments on position limits here http://comments.cftc.gov/PublicComments/CommentList.aspx?id=965

Ted Butler

February 23, 2011


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
quasimodo's picture

My front side is already yellow

Michael's picture

It's hilarious how they refuse to even mention the S-word on the business channels just as how they would not mention the source of the Charlie Sheen interview and the FOX Ron Paul deception.

Send them the silver bears power point presentations.

SilverIsKing's picture

Letters should also be sent to the Attorney General of New York, Eric Schneiderman, as well as the Attorney General of the state in which you reside.  What JPM is doing is pure unadulterated fraud & theft so perhaps at least one of the AGs is not bought and paid for and would take this issue seriously.

For NY, you can contact the AG's office here:


bankrupt JPM buy silver's picture

do you need any copies burned for th PP pres?  I want to unload part 5 right now, But I'll wait till next week.



Bearster's picture

What if the opinion of the public is not reasonable?  The very idea of using coercion to somehow force markets to be free is not reasonable.

The very idea that the banks are naked short, as opposed to profiting from the carry trade (buy physical, sell a future simultaneously, pocket the contango spread), is not reasonable.

 Hell, position limits would prohibit banks from putting this trade on past a certain size.  Do you really want the spread between physical and to widen??

velobabe's picture

letter writing time, bitchez†

Mr Lennon Hendrix's picture

Shall we use the feathers in our caps?

asdasmos's picture

Letter Sent. & for your audio pleasure we have....


Marc Faber McAlvany Interview 23 February 2011.


 - http://www.youtube.com/watch?v=3uEbhPuoTx0

IQ 145's picture

 Thank you. always glad to pointed to a Marc Faber interview.

Temporalist's picture

This has been shared on a few sites/blogs.  Let the masses awaken!

Amish Hacker's picture

Me, too. I have composed one of the greatest letters in the history of public persuasion. Stand back, everyone, now you're really going to see some action in Washington.

collinar's picture

Please post it here for all to see your genius.

BallsDeepGold's picture

We don't need position limits, we just need to make sure the shorts can deliver what they sold. Much easier than some arbitrary limit.

Abitdodgie's picture

Would it not be easier for the people to ask for "end the C F T C " after all what is the point of paying regulators that do nothing. 

nedwardkelly's picture

Speak up and be heard!?



Does anyone really think anyone will see any sort of reprimand for any 'schemes'. Haha... Next thing you'll tell me Obama will bring change.

The_Euro_Sucks's picture

Sorry but I think its a waste of time. The only way to resolve this issue is to buy the metal and blow up the fucking exchanges.  


ps I have respect for the work Ted does and I leared a lot from him. Just not agreeing about begging them to be fair, its war in case you didnt notice

Temporalist's picture

Just go and submit a fucking comment it takes 1 minute.

The_Euro_Sucks's picture

I dont care if it takes 1 minute or 10 years. Waste of time is waste of time. If you like being on your knees begging, fine. 

DavidPierre's picture

Quit  'LEARING' at Butler!



tmosley's picture

No reason not to write a letter.  You can do both.  I am.

55 men's picture

I sent this, it is from Bix Weir: 

Fair and appropriate position limits in silver should be NO MORE than 1,500 contracts or 7.5M ounces. The current proposed limit of over 5,000 contracts WILL NOT SOLVE THE PROBLEM OF MANIPULATION IN SILVER! The 1,500 contract limit is the correct amount and is STILL greater than any other current concentration in physical commodities traded on the COMEX.

living on the edge's picture

What is sad is Ted believes these assholes at the CFTC are decent, honest people who in the end will stop the manipulation. The CFTC will not regulate an end to the manipulation so the game won't end until it implodes on it's own. Buy Gold, buy Silver.

Be well.

JimboJammer's picture

Ted ,   they  are  all  being  Bribed....

The  system  is  broke...

JimboJammer's picture

The  Irish  People  are  angry...  When  they

get  30  Law  Rockets  they  will  fix  things

in  one  afternoon....

bigdad06's picture

Will someone wake Ted up! Give it up Ted! The system is broke and the only way to make real change is to take possession of real physical gold and silver. Crash JP Morgan buy silver!

lieutenantjohnchard's picture

it's true. the bad guys can create havoc. i'll be sending my thoughts to the cftc.

Shameful's picture

Hell I want bigger speculative short positions!  Crank silver down to $5 guys, show us what you are made of!

The spec limits are a joke.  Let them do what they please, when they have to delivery they will either default or be forced to deliver.  People taking deliver will be far, far more effective then relying on government regulators.  If no one wants delivery then the paper market wins, if delivery is forced then paper market dies.  Anyone hanging their hopes on the skill and integrity of government regulators is either hopelessly naive or ludicrously stupid.

Dr. Porkchop's picture

Dear CFTC,


We know the squid has a tentacle firmly up your ass, so far in fact that it virtually controls your mouths with every twitch of its blood sucking appendage.


Fuck you.





The_Euro_Sucks's picture

My thoughts indeed. Did you know the squid (Mario Draghi) is about to take over the ECB?

Cathartes Aura's picture

his-story would expect no less, groomed for the *cough* position.

fredquimby's picture

I just weighed the 2011 silver eagles I bought in USA.

All of them weigh 1.106oz ??!! That means 2 free oz in 20 coins??!!

Anyone else in the same boat?? This seems to be a major discrepancy, I could understand one coin being a bit different, but really, 1.1 ounce, every one????!!

Dr. Porkchop's picture

American Silver Eagles are not pure silver so I believe that they have to be over in order to be called 1oz bullion silver.

lieutenantjohnchard's picture

the copy cats can either get the right size or the right weight but not both unless i'm mistaken. i'll weigh mine to see what they render. i agree. 10% weight differential seems high.

Burgess Shale's picture

The US nickel is 75% nickel and 25% copper, which makes it worth over 7 cents, at current nickel and copper prices.  Invest in nickels, bitchez!

fijisailor's picture

I bought 220 lbs of them just for fun. 

BrianOFlanagan's picture

I am sure your scale is in ounces, not troy ounces.  1 troy ounce is equal to 1.1 regular ounces. Try switching your scale to grams - should weigh 31.103g.

Sorry, no free silver for you.

Cognitive Dissonance's picture

Not all ounces are created equal. Some are born with a Silver spoon in their mouth. :>)

atlee's picture

It is a TROY oz. A troy oz has 31 grams  as opposed to 28 grams in an oz of well...everything else.

AR15AU's picture

1 troy ounce = 1.09714286 ounces