Do Position Limits Matter?

This article was interesting. After many rumors of commodity price manipulation, the CFTC set a position limit.

A "position limit of 20,000" means that no single entity can have a total single entity of more than 20,000 contracts long or short.

There's an obvious loophole.

If the position limit is 20k, and someone wants a 100k position, then they form 5 separate corporations, each of which takes a 20k position. This new regulation means nothing.

I never understood why people get upset about gold and silver price manipulation. If you believe that someone is manipulating the price down, then you should buy and take physical delivery. Appreciate that you're getting a discount. There might be short-term manipulation, but the long-term price should reflect true inflation.