Government aims to regulate large commodity investments
Proposed federal regulations would limit large-scale commodity investments.
- Bruce Sands
The federal government is reportedly taking steps that could benefit silver and gold dealers by working to maintain stable market conditions.
A report in Business Week notes that the Commodities Futures Trading Commission is expected to propose caps regulating how much a single investor can hold in a given commodity future, largely in response to the price swings that characterized the oil market in 2008.
The magazine quoted Bart Chilton, a CFTC commissioner, as saying that the proposal would aim to prevent any individual or company from “controlling too much of a given market,” while discouraging these markets from becoming “a private jungle gym for speculators.”
More…The article noted that there will be a public comment period before the proposal is implemented, although it could be in place as early as springtime.
While the new year is still in its earliest days, there have been growing signs of investor interest so far in commodities like gold and silver, as well as other precious metals. This is due to factors like a shaky dollar and concern about the prospects for an economic recovery in the long term.
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