Anyone have any ideas on what's going on to force the spot
price of silver to rise? Any wild guesses on where it top out??
In 1973, the Hunt family of Texas, possibly the richest family in
America at the time, decided to buy precious metals as a hedge
against inflation. Gold could not be held by private citizens at that
time, so the Hunts began to buy silver in enormous quantity.
In 1979 the sons of patriarch H.L. Hunt, Nelson Bunker and William
Herbert, together with some wealthy Arabs, formed a silver pool. In
a short period of time they had amassed more than 200 million ounces
of silver, equivalent to half the world’s deliverable supply.
When the Hunt’s had begun accumulating silver back in 1973 the price
was in the $1.95 / ounce range. Early in '79, the price was about $5.
Late '79 / early '80 the price was in the $50’s, peaking at $54.
Once the silver market was cornered, outsiders joined the chase but
a combination of changed trading rules on the New York Metals Market
(COMEX) and the intervention of the Federal Reserve put an end to
the game. The price began to slide, culminating in a 50% one-day
decline on March 27, 1980 as the price plummeted from $21.62 to
$10.80. (the above is a reprint of the Wall Street Journal article
from several years ago) I know people that lost millions of dollars
when the market plummeted and one gold dealer that committed suicide
less than an hour after I had seen him and sold him $23,000.00 worth
of gold, which could be held by citizens sometime after 1976.
This is a short version of the 1980s debacle brought on by among
other things the invasion of Afghanistan by the Russians. Which
caused every one to invest in metals, and our involvement in Iran, do
these conditions sound familiar?
I also found sources that speculate silver at 36.00 by July and
another that speculated Silver at 60.00 per troy OZ by Sept. with
gold topping out at 1063.00 but also keep in mind that the market
can collapse as fast as it rises, For now I just buy what I need for
immediate use, fortunately I had just bought 80 oz of sheet 75 oz of
wire and 200 oz casting grain while the market was at 6.03. just wish
I had bought more anti fire scale grain because that’s what I need
the most. But I suppose I could sell my sheet and wire in small lots
on eBay and clean up
As far as reasons, we are currently fighting two non winnable
confrontations which has caused our dollar to drop in value against
other currencies, we are loosing an economic struggle to maintain
jobs in our own country, and it’s all because we all want cheaper
goods, and we have a complete Idiot for a President. Now for the first
time in recent history Chinese residents are free to invest in Gold
and precious metals, and for the past several months the XAU gold
index has been slowly closing up on the American Dollar, if you don’t
like 8.00 silver your going to hate 4000.00 Platinum but bakers will
enjoy selling 5 dollar loaves of bread