| | | Kirk, it is not widely know about Buffett's role in the Silver Market after the Hunt fiasco:
"Key Points:
- The Hunt Brothers' Legacy: Nelson Bunker Hunt and his brothers tried to corner the silver market in 1979, causing a price spike, followed by a crash, making silver seem risky.
- Buffett's Intervention (1997): In 1997, Berkshire Hathaway bought a huge amount (around 111 million ounces) of physical silver, betting on a supply/demand imbalance and restoring faith in silver as a valuable asset.
- Market Impact: Buffett's large position helped restore silver's reputation, making it seem legitimate after years of volatility.
- The SLV Connection (2006): When Buffett sold his massive silver stash in 2006, this physical metal helped form the underlying bullion for the newly launched SLV, an exchange-traded fund, solidifying its role in the market.
- Result: Buffett's trades generated significant profit for Berkshire Hathaway and proved that silver could be a sound investment, paving the way for ETFs like SLV to succeed. "
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