January 31, 2009
Dear Ms. Shapiro:
I understand that the SEC is not particularly interested, and in fact, has in the past been supportive of the institutions' massive short positions in gold and silver on the Comex.
That said, what has gone on in the metals sector over the past year in support of this action to suppress the prices of gold and silver has been nothing short of criminal. Naked short selling has run rampant >> destroying companies, leaving investors, and leaving mining towns devastated. It has also left our country facing desperate shortages in strategic and base metals in the years ahead.
And I understand that that has not been a major concern at the SEC.
All that said, you could now reinstate the uptick rule to allow what mining companies left in existence the possibility of rebuilding. This would not impact efforts to control the prices of gold and silver on the Comex as it will take years to repair the damage done over the past year and put mines back into production.
The lack of an uptick rule, the absence of any regulatory action regarding hedge funds, and the negligence in enforcing trading rules at the Comex in the sector has left our ccuntry vulnerable for years to come. You have a chance to make a small change that might help us all survive.
The metals industry is now waiting to see if you'll take it.