Why is it in so many articles and so many blogs I read about silver everyone likes to refer to the POS back in the 70s/80s when the Hunt brothers cornered the market? How is that even remotely relevant to the price of silver now in a massive financial collapse? Is it just permabulls trying to prove their point?
+1 It is stupid to quote the highest something has ever been and say because we are below that it is not normal. Every time I hear this is shudder. More logical would be to quote average
They cornered 1/3 of the market. I think you could use that 1/3 figure and the price change that came from it to figure out the equivalent the paper market is doing in suppressing the price.
Because if it got that high once, it might happen again. That's why I'm stacking tulip bulbs in the shed. A few hundred years ago a single tulip bulb was selling for the same as a house. It's going to get back there again one day I tell ya! I'll be rich! And if you plant them in the ground, they even multiply by themselves - try doing that with silver bars!
I think it was significant event when silver hit $50 back then (inflation adjusted about $140 now supposedly) because it made it to that price despite: - Abundance of silver above ground - No money printing on the scale we have now - No parabolic China and other countries buying - No wide spread acceptance that the economy is at the gates of hell
Gold is double its 1980 high while silver is 40% below its 1980 high. We have a long way to go still.
Historical highs are a bit pointless anyway. Look at the Nikkei With that logic in mind, I should be going long on the Nikkei stock index...but no Or maybe I should long some tulips. Or aluminium.
Judging by MSPaint Charting Skills we can see that silver has been in a downward spiral for the last 700 years. I have imported the last few years data using my paintbrush.
Ha ha! I like your style lol! The important thing to bear in mind is the relative valuation of silver vs availability (basic supply & demand) and opportunity cost (on many levels - not just monetary - but political, social, economic, military etc) over the extended period... and who was in control of it over the years...
i think it is very relative (in this case) and i don't think the Hunt brothers was the main reason silver went up. The same play stands today. all you need is a hand full of people holding large contracts to demand physical and the price will do a massive jump over night. anywho i did a lot of digging around with the hole hunt brothers topic and found things are not entirely what the US government was telling us. (no surprise there i guess) http://forums.silverstackers.com/topic-5774-1980-silver-paradigm-shift.html Quote from 1980 news paper: http://news.google.com/newspapers?i...J&pg=4142,661805&dq=silver+manipulation&hl=en sounds familiar people? but today there will be no massive interest rate rise to stop it.
