Remember the last time silver went skyward?

fcloud

We were discussing, at our club meeting, on Thursday what happened last time silver went through the roof. In one day it went from the high $30's to over $50 the next day and dropped back to $20 after the government went after that pair of brothers for trying to corner the market. It kind of make you wonder if we will see a similar move this time.

cladking

<< <i>We were discussing, at our club meeting, on Thursday what happened last time silver went through the roof. In one day it went from the high $30's to over $50 the next day and dropped back to $20 after the government went after that pair of brothers for trying to corner the market. It kind of make you wonder if we will see a similar move this time. >>




Most things are opposite this time.

A sudden change in the status quo would likely send the price much faster to much higher levels.

Someday there will be a buying panic in silver and we might be very close to that point.

RGJohn

<< <i>We were discussing, at our club meeting, on Thursday what happened last time silver went through the roof. In one day it went from the high $30's to over $50 the next day and dropped back to $20 after the government went after that pair of brothers for trying to corner the market. It kind of make you wonder if we will see a similar move this time. >>



Yes, it certainly does make one wonder.
Translated into buying/selling that wonder transforms into 'speculate'.
Did anyone at the meeting offer to sell?
Did anyone at the meeting offer to buy?
Just wondering.

PCcoins

<< <i>

<< <i>We were discussing, at our club meeting, on Thursday what happened last time silver went through the roof. In one day it went from the high $30's to over $50 the next day and dropped back to $20 after the government went after that pair of brothers for trying to corner the market. It kind of make you wonder if we will see a similar move this time. >>




Most things are opposite this time.

A sudden change in the status quo would likely send the price much faster to much higher levels.

Someday there will be a buying panic in silver and we might be very close to that point. >>



Ditto. Before the Hunt brothers had a huge inheritance to spend and silver was their choice (wonder how the investment would have turned out if they choose to buy gold instead?)... they basically drove the price into the ground. Now its been slowly heading upward for sometime now.

I could see it going up some more, but I don't see silver dropping half it's value overnight this time around.

fcloud

<< <i>

<< <i>We were discussing, at our club meeting, on Thursday what happened last time silver went through the roof. In one day it went from the high $30's to over $50 the next day and dropped back to $20 after the government went after that pair of brothers for trying to corner the market. It kind of make you wonder if we will see a similar move this time. >>



Yes, it certainly does make one wonder.
Translated into buying/selling that wonder transforms into 'speculate'.
Did anyone at the meeting offer to sell?
Did anyone at the meeting offer to buy?
Just wondering. >>



We have several dealer with brick and morter and serveral dealer who only do shows. There is always the melt value question; however, most would go to the two dealers with brick and morter stores for sales or purchases.

19Lyds

<< <i>We were discussing, at our club meeting, on Thursday what happened last time silver went through the roof. In one day it went from the high $30's to over $50 the next day and dropped back to $20 after the government went after that pair of brothers for trying to corner the market. It kind of make you wonder if we will see a similar move this time. >>

IIRC, at the time the Hunt Bros were doing there magic, the US Government wasn't selling 34,000,000+ ounces of silver a year.

19Lyds

<< <i>

<< <i>

<< <i>We were discussing, at our club meeting, on Thursday what happened last time silver went through the roof. In one day it went from the high $30's to over $50 the next day and dropped back to $20 after the government went after that pair of brothers for trying to corner the market. It kind of make you wonder if we will see a similar move this time. >>




Most things are opposite this time.

A sudden change in the status quo would likely send the price much faster to much higher levels.

Someday there will be a buying panic in silver and we might be very close to that point. >>



Ditto. Before the Hunt brothers had a huge inheritance to spend and silver was their choice (wonder how the investment would have turned out if they choose to buy gold instead?)... >>

Hadn't gold jumped to $850 an ounce during the Hunt Bros Silver run up?

AnkurJ

The last time it happened was due to individuals cornering the market. This time its more due to economic reasons and instability of the dollar.

WoodenJefferson

I'm onlly concerned that if I sell all my melt silver now while @$43, will I have sellers remorse if it does go to $50 or beyond?

ianrussell

<< <i>I'm onlly concerned that if I sell all my melt silver now while @$43, will I have sellers remorse if it does go to $50 or beyond? >>



You'll never be able to pick the absolute top of the market, unless you get very lucky.

USMoneylover

<< <i>I'm onlly concerned that if I sell all my melt silver now while @$43, will I have sellers remorse if it does go to $50 or beyond? >>



Of course you would, just like you would be sick if you woke up one morning and it was 16$ an ounce . In either situation there is gonna be remorse...its a gamble.

ricko

Totally different circumstances this time. Unlikely to drop precipitously. Especially with the economic situation here and in Europe. Cheers, RickO

robkool

I can't see a drop in silver any time soon... The weak US dollar against foreign currency, and the instability in the middle east.

Justacommeman

<< <i>We were discussing, at our club meeting, on Thursday what happened last time silver went through the roof. In one day it went from the high $30's to over $50 the next day and dropped back to $20 after the government went after that pair of brothers for trying to corner the market. It kind of make you wonder if we will see a similar move this time. >>



And the opposite could happen this time. You could go to bed with $43 an ounce silver and wake up with $75 an ounce silver. MJ

Teva

There are some who would argue that silver
has been a correction as much as a gain?

SaorAlba

The withering economy and not political shocks overseas are driving more of the price now. Back in 1980 the USSR had invaded Afghanistan the previous December, the Shah of Iran had been overthrown and then the American Embassy in Teheran had been taken over and the employees held hostage until early 1981.

questor54

The price of PMs has not risen. The value of fiat currencies has fallen.

duck620

Wish the Goverment would go after Oil Companies like they did the two brothers in the silver case.
ken.

Bayard1908

<< <i>The last time it happened was due to individuals cornering the market. This time its more due to economic reasons and instability of the dollar. >>



The Hunts sought to corner the silver market for exactly those reasons.

ambro51

Yes. I went wild in the ol U pick auto junkyards, pulling every rear seat out of every old wreck I could squeeze into. Amazing how much old crusty ugly silver coins are in those old cars....... End of the day....$450 in my pocket at the local B&M.

roadrunner

Ditto. Before the Hunt brothers had a huge inheritance to spend and silver was their choice (wonder how the investment would have turned out if they choose to buy gold instead?)... they basically drove the price into the ground. Now its been slowly heading upward for sometime now.

The Hunts didn't drive the price into the ground, the govt and regulators did by changing margin rules and forcing the Hunts to only to be able to sell silver, not buy it. That was 1979.
In fact the Hunts' efforts from 1973 when they first entered, to early 1979 only moved silver up to $6/oz. Hardly a massive change for 6 yrs of work. The Hunts were uncomfortable that the govt and banksters could nail them to the wall on paper contracts so they systematically begain converting to physical. Unfortunately they didn't beat the rule changes and got nailed. They did nothing illegal except beat the banks and regulators at their own game. That got them mad and resulted in the "nuclear" option. When Warren Buffet 120 MILL ounces of silver from 1996-2004 he didn't get any grief from regulators. His position was probably a larger % of the existing physical market than the Hunts had in the 1970's.

roadrunner

jmski52

What the CFTC did to the Hunts could almost be considered "entrapment" because they were allowed to buy on margin under one set of rules, but they were forced to liquidate when the exchange implemented a "sell order only" stance for several days, raised the margin requirements beyond what the Hunts could continue to finance readily and at the same time, Paul Volker was raising interest rates sharply to interrupt the inflation expectations - "taking away the punchbowl", as it were.

The leverage and fractional reserve accounting used by the Fed makes the Hunt's use of margin look like a children's toy.