Ted Butler: Hedge fund's collapse proves concentration in commodity markets

11:37p ET Tuesday, September 26, 2006

Dear Friend of GATA and Gold:

Silver market analyst Ted Butler argues persuasively in his latest essay, "Concentration," that the collapse of the Amaranth Advisers hedge fund is proof of excessive concentration in the commodities markets. Amaranth's position in natural gas, Butler writes, "was so large and made up such a big chunk of the market that when it was liquidated it wasn’t even truly liquidated. It had to be assumed by other entities in arranged transactions." But the market regulators missed this concentration, just as they have studiously missed the concentration of the short positions in the silver market.

You can find Butler's commentary at Gold Seek's companion site, Silver Seek, here:

http://news.silverseek.com/TedButler/1159293869.php

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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