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Silver

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A quick view on silver prices in 1980s and the worlds view on U.S dollar.

A quick view on silver prices in 1980s and the worlds view on U.S dollar.

Published in: Economy & Finance, Business
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  • 1. Silver market in 1980's and “NOW”
    • In 1980 Silver rose to $49.95 per Ounce
    • Reports, show this rose
    • was due to massive
    • inflation that was
    • created by U.S govt.
    • during 1970s.
    Silver market in 1980's and “NOW” Silver market in 1980's and “NOW” Silver market in 1980's and “NOW” Silver market in 1980's and “NOW” Silver market in 1980's and “NOW” Silver market in 1980's and “NOW”
  • 2. Silver market in 1980's and “NOW”
    • “ Hunt Brothers” were mainly accused by the U.S govt. of “cornering “ the silver market and trying to manipulate silver prices .
    • In fact the “ Hunt Brothers” accumulating silver in order to protect themselves from raising U.S dollar .
  • 3. Silver market in 1980's and “NOW”
    • Hunt brother strategy has caused a big mess , their silver positions were too large for them to ever sell with out causing crash in silver prices .
  • 4. Silver market in 1980's and “NOW”
    • With silver reaching $49.45 per ounce in early 1980s.
    • The world on the other hand, was about to lose confidence in the U.S dollar.
  • 5. Strategic move by CBOT & COMEX
    • To prevent hyper inflation and save U.S dollar ,CBOT raised margin requirements and limited traders positions (Approx: 3 million ounces of silver futures)
    • COMEX limited traders positions to 10 million ounces of silver futures
  • 6. Federal Reserve, in to the action
    • Federal Reserve rapidly raised interest rates which resulted a sharp decline in silver prices and “Hunt Brothers” were severely hit by margin calls.
  • 7. Largest ever decline in silver prices…..
    • On a single day in march 1980, when hunt brothers were forced to liquidate a larger chunk of their position, Silver has seen a decline of 78% from its earlier 2-month high.
    • Approx: $5 to $10.80 per ounce was the decline.
  • 8. Thanks a lot for watching

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