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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (26747)	12/10/2025 9:55:19 AM
From: Kirk ©	2 Recommendations Recommended By Da Rookie sixty2nds Respond to of 26770

SLV: Silver Thursday From en.wikipedia.org Silver Thursday was an event that occurred in the United States silver commodity markets on Thursday, March 27, 1980, following the attempt by brothers Nelson Bunker Hunt, William Herbert Hunt and Lamar Hunt (collectively known as the Hunt Brothers) to corner the silver market. A subsequent steep fall in silver prices led to panic on commodity and futures exchanges. ... Aftermath The Hunts lost over a billion dollars through this incident, but the family fortunes survived. They pledged most of their assets, including their stake in Placid Oil, as collateral for the rescue loan package they obtained. However, the value of their assets (mainly holdings in oil, sugar, and real estate) declined steadily during the 1980s, and their estimated net wealth declined from $5 billion in 1980 to less than $1 billion in 1988.[7] By 1982, the London Silver Fix had collapsed by 90% to $4.90 per troy ounce.[8] In 1988, the brothers were found responsible for civil cases of conspiracy to corner the market in silver. They were ordered to pay $134 million in compensation to a Peruvian mineral company that had lost money as a result of their actions. This forced the brothers to declare bankruptcy, in one of the biggest such filings in Texas history.[9]

To: Kirk © who wrote (26747)	12/10/2025 10:18:13 AM
From: #Breeze	3 Recommendations Recommended By Anchan Kirk © sixty2nds Read Replies (1) \| Respond to of 26770

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. "

To: Kirk © who wrote (26747)	12/10/2025 10:29:50 AM
From: #Breeze	2 Recommendations Recommended By sixty2nds toccodolce Respond to of 26770

Ya don't think the Silver market is manipulated. Learn how the Boyz led to the Hunt Silver Collapse. The Boyz couldn't deliver or cover on their short contracts. So COMEX changed the rules in favor of the shorts. The Hunt brothers' silver squeeze in 1980 worked by buying massive amounts of physical and paper silver with borrowed money, creating a short squeeze as prices soared, but COMEXcounteracted them by introducing Silver Rule 7, restricting margin buying and forcing massive margin calls, which led to a price collapse and the famous " Silver Thursday," ultimately ending their corner attempt as they couldn't meet obligations. How the Hunt Brothers Created the Squeeze: Leveraged Buying: The Hunts used significant borrowed funds (leverage) to buy vast quantities of silver futures and physical bullion throughout the late 1970s. Price Surge: This massive demand drove silver prices dramatically higher, from around $6 to nearly $50 an ounce. Short Squeeze: Investors who had bet against silver (short sellers) were forced to buy silver to cover their positions, adding even more buying pressure and fueling the price rise. How COMEX Intervened (The "Circumnet"): Silver Rule 7 (Jan 1980): In response to the escalating situation, COMEXimplemented this rule, which placed heavy restrictions on buying commodities on margin (using borrowed money). Stricter Margin Requirements: Other exchanges followed, making it much harder and more expensive for the Hunts to continue borrowing and buying. Liquidity Drying Up: As interest rates rose and banks became wary, the ability to finance these huge leveraged positions dwindled. The Collapse: Silver Thursday (March 27, 1980): The Hunts couldn't meet enormous margin calls, triggering panic selling and a price crash (dropping 50% in one day). Market Rescue: Banks provided the Hunts with a massive loan to prevent total financial collapse, but the scheme ultimately failed, leading to huge losses for the brothers.