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The Daily Reckoning - A 1980 Copy of Playboy Predicts the Future for Silver

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May 20, 2011 – Comments (8) | RELATED TICKERS: SLV , SIL , SLW

Last night I lay back on my couch and had a couple of glasses of red, while reading an article from 1980 about the Hunt brothers and the events that surrounded the last spike in Silver to $50.

I found the article while surfing the web for financial news so I take no responsibility for the fact the original article was found in Playboy. Everyone reads Playboy for the articles, right?

It was a fascinating article and well worth the read for anyone interested in the markets. You can find the article here.

A short synopsis of the story is that the Hunt brothers, and in particular, Nelson Bunker Hunt, bought so much silver in the mid to late ’70s that they nearly cornered the market.

They bought 55 million ounces in late 1973 and early 1974 at around $3-$4 an ounce and sent 40 million ounces of it by chartered plane to Switzerland because they feared the US government would confiscate silver in the same way it had stolen gold from US citizens in the 1930s.

Full article

8 Comments – Post Your Own

#1) On May 20, 2011 at 6:21 PM, TMFAleph1 (95.77) wrote:

Great find, thanks!

Alex Dumortier

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#2) On May 20, 2011 at 7:19 PM, ChrisGraley (31.73) wrote:

“The boards of both the Chicago and the New York exchanges were composed not only of ‘outside’ directors but also of representatives of the major, usually Eastern-based brokerage houses. Later testimony would reveal that nine of the 23 Comex board members held short contracts on 38,000,000 ounces of silver. With their 1.88 billion dollar collective interest in having the price go down, it is easy to see why Bunker did not view them as objective regulators.”

Wow! The whole story seems to be repeating.

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#3) On May 20, 2011 at 7:30 PM, Valyooo (99.82) wrote:

If the story seems to be repeating, why are you bullish on silver?

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#4) On May 20, 2011 at 11:06 PM, ChrisGraley (31.73) wrote:

Just because the regulators have an incentive to push silver down, it doesn't mean that they will succeed.

That aren't fighting 2 brothers and a couple of sheiks this time. This time they are fighting the market and they showed us a few plays from their playbook last game. 

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#5) On May 20, 2011 at 11:27 PM, catoismymotor (67.75) wrote:

Was this in the April 1980 edition? The playmate of the month was Liz Glozowski. What kind of revealing insight did she have for the readers? ;)

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#6) On May 21, 2011 at 1:10 AM, Valyooo (99.82) wrote:

cato, did you memorize that?

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#7) On May 21, 2011 at 6:12 AM, whereaminow (73.77) wrote:

Alex,

I thought silver manipulation was a conspiracy theory.

David in Qatar

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#8) On May 21, 2011 at 10:00 AM, catoismymotor (67.75) wrote:

#6 - No. I used the power of the internet. I don't know if the April 1980 issue has the article or not. But the model for that year was the most healthy looking in my opinion. :)

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