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Silver $

pmacpmac Posts: 3,189 ✭✭✭
in Precious Metals
I had to edit to get to my real question. I'm sure it's been discussed many times before, but what was silver's high when the Hunt's were playing around trying to corner the silver marker?
Paul

Comments

  • jmski52jmski52 Posts: 22,825 ✭✭✭✭✭
    I think that trading went as high as $45.00 or so, but it did spike to over $50.00/oz.
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  • fivecentsfivecents Posts: 11,207 ✭✭✭✭✭
    I think for an hour or so it hit 50+.
  • OPAOPA Posts: 17,119 ✭✭✭✭✭
    The historical high for silver was set 531 years ago in 1477, topping at (using the purchasing power of 1998 dollars) a princely $806 an ounce. image

    During the Hunt Brothers fiasco, I believe in 1/80 intra day it hit around $50, but I don't believe it closed at that price.
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  • guitarwesguitarwes Posts: 9,266 ✭✭✭

    so, they were planning on cornering the market buying it all up and driving the price up, but who were they gonna sell it to when the price skyrocketed? Who were they planning on the end user to be?

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  • renman95renman95 Posts: 7,037 ✭✭✭✭✭
    I remember that week. I bought some art bars for $18 ea. on a Friday and early next week sold them for $31. It wasn't much but I remember the kaos at my local b&m in Huntington Beach, SoCal.
  • clouisejewelersclouisejewelers Posts: 329 ✭✭


    << <i>so, they were planning on cornering the market buying it all up and driving the price up, but who were they gonna sell it to when the price skyrocketed? Who were they planning on the end user to be? >>



    They would have had way more buyers than metal if their plan had worked. The Hunts were going to demand physical delivery of their silver at the expiration of their futures contracts. The banks that held the contracts did not have enough silver, nor did that amount of silver even exist in the world. The price of silver would technically become infinite. The U.S. government stepped in and illegally disallowed this by changing the contract rules. They couldn't have the biggest banks go bankrupt and two Texas tycoons becoming the world's first trillionaires.
  • WeissWeiss Posts: 9,941 ✭✭✭✭✭
    I think that would make an awesome movie. I'd love to see it on the big screen.
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  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    Dont forget how they lost over a Billion Dollars when things turned. They went from the Hunt Bros. to the Hunted Bros. fairly quickly.
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  • FrankcasFrankcas Posts: 118
    Silver cooled down a few years later, $5-6 $/oz. In 87 it briefly spiked to $10-11/oz which is roughly $21 in today's money. How you like them apples? image
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    The Hunts only "lost" when the rules were changed to take them down. Had that not occurred they would have taken down the Comex.

    Fwiw the Hunts started their buying in 1973. So they were doing this for over 6 yrs before silver really started to do much of anything in spring 1979. Silver was still only around $5/oz in early 1979. The Hunts had sizeable positions in futures and physical by early 1979 but could already see that the FEDs were going to start squeezing them on paper contracts. So their plan was to convert everything to physical to protect themselves....which was a pretty good idea. But before they got too far along the FEDs did their squeeze play by changing margin rules as well as new limitations on buying and selling. Imagine today if the FEDs told you that you could only sell futures contracts but could not buy any. Considering the Hunts were building a sizeable position for over 6 yrs, it's surprising that it really had a minor effect until the final blowout in later 1979.

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  • FrankcasFrankcas Posts: 118
    It doesn't sound like they manupulated the market.
  • Wolf359Wolf359 Posts: 7,656 ✭✭✭


    << <i>It doesn't sound like they manupulated the market. >>



    They did so, and intentionally. They wanted to rule the market entirely. At one point they had possession of 55 million ounces and sent it to Switzerland under armed guard for storage. Not only was Bunker buying, but his brother was too. And then a third source, which also was the Hunt money was coming in from off-shore fronted by dummy corporations. This was all done to get around limits that the CFTC imposed to avoid concentrated positions. The Hunt Brothers were a prime topic at the weekly CFTC status meetings, but the CFTC back then (as in today) was too timid to take decisive action.
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  • derrybderryb Posts: 36,795 ✭✭✭✭✭


    << <i>The banks that held the contracts did not have enough silver, nor did that amount of silver even exist in the world. >>


    Boy, good thing nothing like that could happen today."

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  • VikingDudeVikingDude Posts: 1,342 ✭✭✭


    << <i>I think that would make an awesome movie. I'd love to see it on the big screen. >>



    I agree. Like they did with Enron.
  • MrSpudMrSpud Posts: 4,499 ✭✭✭
    Didn't the Debeers successfully take over and control the diamond market in a vaguely similar way to what the Hunt's tried with silver?
  • pmacpmac Posts: 3,189 ✭✭✭


    << <i>Didn't the Debeers successfully take over and control the diamond market in a vaguely similar way to what the Hunt's tried with silver? >>


    I think that they have done this for many years. The "blood diamonds" have put a wrinkle in this situation. I think the serial numbers deBeers puts on them now have made selling "blood diamonds" a bit more difficult.
    Paul
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