If memory serves me correctly (and I will accept being corrected) back in 1980 when silver broke from 50 it was the threat of default that caused it. - I know the Hunt brothers were manipulating it, but I seem to remember it being the actual rumor of potential default rather than the Hunts that killed the market back then.
What killed the market back then was that first COMEX officials placed limits on the open long positions, then forbid all buying, only permitting selling. Of course the price plummeted. The Hunts were bankrupted and criminally prosecuted for "manipulation" (hah! yeah right) while the real criminals (the officials) who shorted the markets in advance made a bundle and were never caught. May they rot in Hell
The Hunt's were leveraged, so the "officials" (bastards) changed the rules on how much one could have on margin. Hunt's were forced to sell huge amounts, driving the price downward quickly.
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The last official act of any government is the looting of the nation.
Comex CAN Default on Silver?
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Posted - 08/05/2010 : 07:53:10
