letter to avoca re comex failings

I suggest shareholders use the following draft (from HotCopper member CHUCKEY) to write a letter to Avoca management requesting they ask the Minerals Council of Australia to make a submission to the US Commodities and Futures Trading Commission (CFTC) regarding the totally unacceptable manner in which COMEX operates its precious metals exchange...

(INSERT YOUR ADRESS)

Rohan Williams
Managing Director
Avoca Resources Limited
Level 1, 31 Ventnor Ave
West Perth WA 6005


Dear Mr Williams,

The US Commodities and Futures Trading Commission public hearing last month in Washington received alarming testimony of market irregularities on the COMEX precious metals exchange. Evidence was submitted of one or two large banks dominating trading on the exchange to the extent of disabling the price discovery mechanism that enables gold producers to receive a fair price for their product. Furthermore it was revealed that a whistleblower who worked as a precious metals trader in London, has submitted detailed evidence to the CFTC regarding fraudulent activity on the COMEX silver exchange.

The CFTC is deciding whether position limits for very large gold and silver traders should be enacted and enforced. To date there have been no such position limits for traders in the precious metals markets in the USA, thus allowing excessive concentrations by very few traders, even though strict position limits are in place for certain agricultural commodities and proposals are confirmed to limit positions in energy markets.

The Minerals Council of Australia of which our company is a member is currently considering a response to the CFTC pending feedback from members. As a shareholder, I request Avoca ask the MCA to submit to the CFTC that proper position limits for gold and silver markets be enacted and enforced. To be considered for the hearing, the Minerals Council of Australia needs to respond to the CFTC by April 30th. Accordingly, I believe it would be to our benefit that Avoca contacts the MCA Deputy Chief Executive, Brendan Pearson, as soon as possible to request this submission.

His email; [email protected]
Ph: 02 6233 0600

Your urgent consideration is greatly appreciated.

Sincerely,
XXXX XXXX