SILVER ASSOCIATION SEC LETTER Monday, December 05, 2005 - FreeMarketNews.com
December 5, 2005
Mr. Christopher Cox, Chairman United States Securities and Exchange Commission 450 Fifth Street, NW Washington, DC 20549
Re: Petition to approve the Barclay's silver ETF
Dear Chairman Cox:
As you are aware, there has been some resistance to the creation of the proposed Barclays silver ETF. The primary argument given by third parties for why the ETF should not be approved is that it could stimulate demand and raise silver prices. This argument is an unfounded reason to block the ETF, and is clearly not in the interest of market participants. In the long run this policy may prove to work against silver consumers. If there is indeed a lack of abundance in silver supplies, increased investment will be necessary in order to create a larger capacity for producing silver.
We believe that public policy set by that SEC should not be based upon speculating how market prices will react in the future. Instead, the SEC should commit to its primary mission of working to "protect investors and maintain the integrity of the securities markets." If any SEC Commissioner believes that the SEC should use its power to effect short-term price movements within the market then request that you explain this position.
The Silver Association is a grassroots organization that was created for the purpose of protecting the interests of silver miners, providers and investors. Within the last two weeks, over 1,000 individuals have signed The Silver Association petition in support of a silver ETF. More and more people are signing it everyday, and they will not go unheard. You can see their signatures here: http://www.silverassociation.org/petition1.php
A silver ETF would increase liquidity in the silver market by enabling faster transactions and stimulate investment that is required for free and fair trade. By promoting increased investment in the silver industry, market forces will work to attract mining, refining, and other capital investment. It will also raise the job outlook for so many hardworking people in the industry. Therefore the Silver Association holds the position that the creation of a silver ETF would be equally beneficial for both silver providers and consumers. We urge the SEC to complete the passage of the Barclays silver ETF because by doing so the SEC and its members will demonstrate that they are truly aligned with its purpose and mission statement.
(Disclosure: FMNN and its executives may have professional relationships with some involved in the Silver Assoc. but no interest of any sort, financial or otherwise, directly or indirectly.)
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