With just a couple of new laws it can all dissapear.

S

spets1

New Member
I have read a little on Hunt brothers. From what I understand the reason that the silver/gold crashed is because the 'government' (whoever it may be cftc, etc) introduced new laws.

Mike Maloney's article on Hunt Brothers.
http://www.watchingtheworld.org/1391/how-the-hunt-brothers-capped-gold…yes-gold-michael-maloney
The CBOT, backed by the CFTC, finally decided to put a stop to the Hunt brothers' buyingby changing its rules.

Margin requirements were suddenly raised, and traders could hold no more than 3 million ounces of silver futures; those holding more were placed in forced liquidation. Bunker Hunt cried foul, accusing exchange board members of having a financial interest in the marketsan accusation that would later be proven true.
...
On January 7, 1980, the other major U.S. exchange, COMEX, changed its rules also. Investors were limited to 10 million ounces in futures contracts, and any amount above that had to be liquidated by Friday, February 18.
...
COMEX, terrified that it would be forced into default, announcedwith the backing of the CFTCthat trading in silver would be limited to liquidation orders only, eliminating any buyers.
...
On Silver Thursday, silver dropped from $15.80 to $10.80 an ounce. The stock market also crashed, fueled by rumors that the Hunt brothers would liquidate stocks in order to cover their silver losses.
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So in one step, the Silver/Gold was squashed. Everyone who invested into gold/silver lost everything. And it was impossible to predict these laws unless you had inside information.
This sounds very dangrous to me. Could this happen again? Can they just somehow tweak the laws and all our investments crash and burn?
Can anyone come up with a law to crush silver? Any lawyers out there want to speculate?
 
A govt could at any point enact law making private ownership of gold and/or silver illegal.

Such a law could be marketed by the govt of the day as "taking to task those financial terrorists who seek to manipulate the price of gold/silver by hoarding it".

Do I think this will happen in Australia? No.
 
the masses don't even have any precious metal, why would they care?

they'll eat whatever bullshit they are fed as long as it has a little sugar on it
 
On Silver Thursday, silver dropped from $15.80 to $10.80 an ounce. The stock market also crashed, fueled by rumors that the Hunt brothers would liquidate stocks in order to cover their silver losses. Because most of their silver bullion had been purchased at under $10 an ounce, the Hunts were still ahead of the game on their physical silver. But in the futures market, where their average purchase price was near $35 an ounce, it was a different story.

Silver Linings: What the Hunt Brothers Can Teach Us Today

The Hunt brothers got into trouble because they exposed themselves to a huge amount of risk through their leveraged investments. Leverage makes a bigger impact when you're losing than it does when you're winning: It can be as blunt as a bowling ball on the way up, but as sharp as a surgical laser on the way down.

In my view, there's simply no substitute for physical ownership of your own gold and silver. This is especially important today, as we see the fiat currency system showing severe signs of instability.

Whether the Hunt brothers were victims of their own greed, the greed of board members on the exchanges, a desperate attempt by the Fed to save the dollar, or some combination of these things, it's clear to me that the fall of silver in 1980 brought gold down with it and bought the dollar some extra time.
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I doubt that it would make a difference to the physical price - Physical gold and Silver are now seen as a safe haven as real money with intrinsic value in a world of paper that is going up in smoke. I doubt that the spot price for PM's will be relevant much longer to the physical price.
 
Wonder if any governments will try price fixing like Zimbabwe did with bread etc. - your gold is worth this much because we say so :P It worked well in Zimbabwe :lol:
 
Silver and Gold are only owned by rich people...I hope the Govt takes it off the buggers and uses it to bail me out.
 
Clawhammer said:
Silver and Gold are only owned by rich people...I hope the Govt takes it off the buggers and uses it to bail me out.
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Me 2 CH - I mean I used to have some....but there was this boating accident see and.......
 
Smoothcriminal said:
Clawhammer said:
Silver and Gold are only owned by rich people...I hope the Govt takes it off the buggers and uses it to bail me out.
Click to expand...

Me 2 CH - I mean I used to have some....but there was this boating accident see and.......
Click to expand...

Dude, Don't you remember, I was right there beside you?..I lost mine too :)
 
Can someone who was stacking back in 1978-9 shed some perspective?
Did everyone just lose their money? Even if you had physical? Could you trade it for big bucks on black market?

Did you think the situation back then was worse than it is now?
 
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