Will The CFTC Actually Regulate Gold and Silver Futures Positions?

Short answer:  "No."

If you read thru the following analysis from the Financial Times and assume that the CFTC might adopt similar rules for gold/silver trading, then the conclusion is that the CFTC will do nothing more than spray Godzilla with some bug spray.  This would be 100% consistent with everything else the Obama Administration has done with regard to reform which, "appears" to protect the public against predatory big financial firms and corporations, but does nothing to actually Change the corrupt reality.  Here are some key points:

"Thursday’s CFTC proposals on position limits in the energy markets were largely seen as a ‘light touch’ by industry voices. This is because, quantifiably speaking, they set loose limits that hardly went beyond those already enforced by exchanges in the form of accountability limits"

"First, they appear to have ruled that passive long-only funds (along with funds generally) would never be eligible for exemptions.

Second, they initiated a “limited risk management exemption” for swap-dealers who were previously eligible for bona fide hedger exemptions;

Third, they appear to classify the speculative operations of bona fide hedgers and swap-dealers completely separately;

Meanwhile, it could also have a bearing on the prop desks of banking institutions — although it’s not clear to what extent a physical presence on the prop side could offset the restrictions."

Here's the link:        The CFTC: Nothing Is But What Is Not

My conclusion is that the CFTC, in a manner consistent with all Government actions w/regard to big banks, will put in some kind of enhanced regulation that will be nothing more than form with very little substance. In fact, if the above analysis is accurate, it would appear that regulation would be headed in the direction of making it even more difficult for a big speculative fund to take on a big concentrated long position as a way to speculate against the big bank shorts. It also looks like there will be loopholes large enough to drive an army of tanks thru. I stand by my call that the CFTC will do nothing to stop the large concentrated short positions in gold and silver - nothwistanding some form of regulation that does nothing more than patronize the public but does nothing of substance.

In fact, my new expectation is that any CFTC regulation in the metals will make it more difficult for speculators to trade and make it even easier for the big banks to rape and pillage the gold and silver paper markets.  Sorry Ted. (Everyone should read the 1st comment posted below)