a lawyer writes to the CFTC - FINALLY

[Spartacus]

something i've been looking forward to for a long time

I've written before that one valid refutation of Butler could be on his claim that shorts must have good reason to believe they could cover (deliver against) their shorts.

Having no knowledge of US law I did not know how to quote the law myself, or even find it.

http://news.silverseek.com/SilverSeek/1212764222.php

"...(a)(1) Each leverage transaction merchant must at all times maintain cover of at least 90 percent of the amount of physical commodities subject to open long leverage contracts entered into with leverage customers, and must at all times also maintain cover of at least 90 percent of the amount of physical commodities subject to open short leverage contracts entered into with leverage customers..."

Time will tell if this guy's analysis of law is correct, but at least he's actually quoting the law/regulation

I searched for posts with lawyer and cftc & found nothing so I hope this is not a duplicate

[metalman]

Re: a lawyer writes to the CFTC - FINALLY

something i've been looking forward to for a long time

I've written before that one valid refutation of Butler could be on his claim that shorts must have good reason to believe they could cover (deliver against) their shorts.

Having no knowledge of US law I did not know how to quote the law myself, or even find it.

http://news.silverseek.com/SilverSeek/1212764222.php

"...(a)(1) Each leverage transaction merchant must at all times maintain cover of at least 90 percent of the amount of physical commodities subject to open long leverage contracts entered into with leverage customers, and must at all times also maintain cover of at least 90 percent of the amount of physical commodities subject to open short leverage contracts entered into with leverage customers..."

Time will tell if this guy's analysis of law is correct, but at least he's actually quoting the law/regulation

I searched for posts with lawyer and cftc & found nothing so I hope this is not a duplicate

such attention to minutia... you must own a lotta silver.

[Spartacus]

Re: a lawyer writes to the CFTC - FINALLY

lots

I've mentioned the fact many times

such attention to minutia... you must own a lotta silver.

[j4f2h0]

Re: a lawyer writes to the CFTC - FINALLY

i have been putting off buying everything that is not a necessity to buy silver during this price crash! To compare the silver trade to poker, it is like having a complete donkey at the table who is just doing his best to give money away and people berate him for playing bad poker! If someone wants to give their money away shut up and let them!
If these crazies wanna give us ie (educated people) the best chance to accumulate real wealth at a discount, i say let them! I dont see where the rush is to see silver and gold at 50 and 2000 dollars. When that time comes, no matter what i will be thinking back to right now and questioning if i did everything i could to buy as much as i could!
From a mining perspective who will even bring silver out of the ground at its current price?? Not many people like working hard to loose money on your product, i know i wouldn't! Then again the longer they fabricate the more smart people will benefit as long as they are patient!
Cheers!

[Guest]

Re: a lawyer writes to the CFTC - FINALLY

such attention to minutia... you must own a lotta silver.

Metalman - I understand your point, but do you suppose such comments advance the inquiry much at all? Seems more like idle sniping than anything substantive. In fact there are some very real mysteries swirling around this particular segment of the bullion markets at the moment - with trails of questions that run all the way up to the COMEX and the global bullion exchanges which are supposedly "overflowing with unclaimed stores" for refining into retail products.

I've posted several "conundrums" to do with that, but have not noted much of any engaged comments about those paradoxes from you. Why the official US government stores of bullion remain *unchanged* down the the very last declared ounce, since the spring of 2006, or why the US Mint has momentarily exhausted coin production due to "overwhelming demand" while demand in 1999-2000 was twice what it is now and the US Mint handled that demand without a hitch, or even any public declaration about "high demand" at that time.

Meanwhile, your idle snipes offer little insight to what might be worth looking at there. Plus you've already used this line a couple of times before. It's getting a little threadbare at the elbows?

Personally I think the legal bustle and noise is going nowhere fast. That's not the place where we are likely to see startling things develop. Retail shortages have been logged worldwide in this segment since late 2007. Anyone suggesting the nonexistence of retail product is a "production bottleneck" which has mysteriously stymied resolution for 8-10 months is engaging in arguments which require true believers to start bending over backwards in obeisance to their "skepticism theology". Are you a "skepticism theologist"?

[jtabeb]

Re: a lawyer writes to the CFTC - FINALLY

i have been putting off buying everything that is not a necessity to buy silver during this price crash! To compare the silver trade to poker, it is like having a complete donkey at the table who is just doing his best to give money away and people berate him for playing bad poker! If someone wants to give their money away shut up and let them!
If these crazies wanna give us ie (educated people) the best chance to accumulate real wealth at a discount, i say let them! I dont see where the rush is to see silver and gold at 50 and 2000 dollars. When that time comes, no matter what i will be thinking back to right now and questioning if i did everything i could to buy as much as i could!
From a mining perspective who will even bring silver out of the ground at its current price?? Not many people like working hard to loose money on your product, i know i wouldn't! Then again the longer they fabricate the more smart people will benefit as long as they are patient!
Cheers!

Ditto

[pwcmba]

Re: a lawyer writes to the CFTC - FINALLY

My first silver purchase (with the exception of a 1 oz bar at a coin show in the early 80's for around $12) was a 1,000 oz bar in 2001. I only paid $4.50 per oz but I must say, that thing was a big pain in the butt. It is BIG and HEAVY!

More recently I came to realize the many benefits of small 1 oz coins. When I bought the large bar it was in thinking "well this price cant go any lower and the FRB will soon have negative interest rates". While buying coins recently it was in thinking if I need money to go buy something when the paper stuff is worthless I can just take a coin(s)/bar(s) or if the paper stuff still has some value to exchange those at a dealer and then buy something (its worth the premium for convenience). There is no simple way to do that with the 1,000 oz bar. While all of this is obvious, I still wanted to share the thought process.

I really don't know what to think about the conspiracy theories and so forth as it relates to this metal. I will say the following in terms of my experiences: When I bought the 1,000 bar in '01 the dealer said "that is the only one we have in stock" probably means nothing because they can just get more from COMEX.

Recently, when I was buying monster boxes of silver maples there have been no problems until the last order a few weeks back - it is "delayed waiting on the mint." Perhaps it is just a bottleneck of the minting process and not a shortage of the metal - I don't know.

Why did the US mint stop production of both silver and gold coins for a time instead of increasing production? I don't know; they have since said production resumed.

From my experiences as a local and metals market maker at CBOT: I never had a major problem with gold deliveries (2002 - 2004). The only glitch was kilo bars versus 100oz bars but that story is too long and serves no purpose to tell. As for silver, I never took delivery so I can't say one way or the other.

Last comment, I did just get notice (as I am still on the e-mail list) that the COMEX Delaware vault effective 12/1 has raised its withdrawal fee for silver to $125 per bar and storage to $30 per month. I've posted the e-mail below.

Has anyone taken delivery (and withdrawal) on COMEX silver recently and would like to share the story if there is one?

(08-453) Storage and Withdrawal Rates - Delaware Depository
From:	Exchange Information (ExchangeInformation@cmegroup.com)
	You may not know this sender.Mark as safe|Mark as unsafe
Sent:	Tue 9/02/08 3:49 PM
To:	Exchange Information (ExchangeInformation@cmegroup.com)

Notice No. 08-453
September 2, 2008


TO: ALL COMEX DIVISION MEMBERS and MEMBER FIRMS
ALL NYMEX DIVISION MEMBERS and MEMBER FIRMS


SUBJECT: Storage and Withdrawal Rates – Delaware Depository



Delaware Depository Service Company has notified the Exchange of the following changes in its rates and charges for the storage and withdrawal of silver. These charges will be effective on December 1, 2008.

RATES AND CHARGES FOR SILVER

Delaware Depository Effective: December 1, 2008

Storage New Rate: $30.00 per month

Out Charge/Break Fee New Rate: $125.00 per receipt



Should you have any questions or require any additional information, please contact James Zeng at 212-299-2612 James.Zeng@cmegroup.com or Joann Arena at 212-299-2356 Joann.Arena@cmegroup.com.

[D-Mack]

Re: a lawyer writes to the CFTC - FINALLY

i have been putting off buying everything that is not a necessity to buy silver during this price crash! To compare the silver trade to poker, it is like having a complete donkey at the table who is just doing his best to give money away and people berate him for playing bad poker! If someone wants to give their money away shut up and let them!

Sometimes you loose with quad aces

http://www.youtube.com/watch?v=Cdurs0C8mTM