Home Forums Hunting & Shooting Hunter's Campfire Gold and Silver Predictions

Yeah, that's why they did it?

Knew a guy even then that bought into the economic collapse stories and went heavily into physical silver near the peak. He was a real jerk so nobody felt too sorry for him.

That orchestrated 1980 attack on metals bought some extra life for the phony fiat currency system that came into existence in 1971 (a mere nine years previously) with Nixon's abandonment of Bretton Woods. That's what it was about.

Do a little Googling.

"The brothers were estimated to hold one third of the entire world supply of silver (other than that held by governments). The situation for other prospective purchasers of silver was so dire that the jeweller Tiffany's took out a full page ad in The New York Times, condemning the Hunt Brothers and stating "We think it is unconscionable for anyone to hoard several billion, yes billion, dollars' worth of silver and thus drive the price up so high that others must pay artificially high prices for articles made of silver"."

Some say the Hunts in consortium controlled half the silver supply. OBVIOUSLY the price of silver increase was artificial.

It was all in the leveraging. Raising the margin requirements and limits on contracts cratered the price back toward a real fair market value.

I think Mike Maloney's take is the more accurate one: See Here

TRH is right. The information is out there you just have to let it in.

I listen to what Mike Maloney has to say regarding gold and silver. Is he a salesman? Yes, but he is also a monetary historian that connects the dots as to what is going on today with the past. Maloney says that the price of gold 'accounts' or adjusts to the fiat money supply like it did in 1934 and 1980. I am expecting history to repeat its self.

I agree. He lays it out pretty convincingly.

Read the link, not buying it. Plus the author has a financial interest in stirring up trades in physical precious metals. (Hint: Why did the Hunts pick silver and futures?)

The public was hardly involved other than selling whatever silver they had for way more than it was worth. The whole mess was driven by investor greed and then panic. The trigger for the collapse of the silver price was COMEX fearing they would default due to the artificial shortage of silver. The government wasn't protecting the dollar they were protecting COMEX.

Mike Maloney's theory "that Bunker and his brother were used by the Federal Reserve, in collusion with COMEX and the Chicago Board of Trade (CBOT), to cap the price of gold�YES, GOLD�and save the U.S. dollar" requires a lot more faith in the ability of the government to carry out a complex plan than I have. My theory is that any benefit to the Dollar was bumbled into, not orchestrated by the government.

The takeaway is that the price of silver and gold has collapsed in recent history and can do so again, and that the Federal Reserve with the help of market regulators can control the price of silver and gold, at least at the limits where the larger economy is at risk

Just as in FDR's day, the government can ban private ownership of most forms of gold and set the price private owners must sell it to the government for. You see fiat money is not back by nothing, as some like to claim, its back by the full force and power of the government. The dollar is inflated on purpose, but it can also be deflated on purpose.

Dead on! If I was young today with a lot of time to go I would be buying silver and maybe some gold for the long haul. The USS Titanic is sinking and will go under at some very near future date. In the next 40 years it will take a $1,000 to buy a loaf of bread. They are already predicting that in ten years you will need to be a trillionaire to buy what a billionaire can buy today.

That's precisely what they were saying in 1979 - the end is near. Everything except walking the streets in sack cloth carrying a sign.

The major distinction between 1979 and now is the debt. In 1979 the US was the number one creditor country in the world. Now we are a huge debtor. The government has unfunded liabilities of close to $100 trillion.

And the power to tax the public at large in order to pay it, whether directly or via the method of inflation.

The US would have to stop all spending for a decade and still collect the same amount of taxes it did last year in order to pay off our debt of $17 trillion. I don't think this will happen, so yes, they will inflate the debt away. When the world realizes what is going on and they decide enough is enough PM will skyrocket.

Agreed.

Inflation of 2%, which is the Fed's stated goal means the 17 trillion debt is reduced in value by 340 billion per year. Back in the late 70's and early 80's we had inflation of over 10%. Being much of the debt that's not held by the Fed itself is in 10 year T bills (fixed interest for 10 years), the Fed can monetize any amount of debt in a decade of 10% inflation. That amount of inflation didn't collapse the economy in the late 70's and early 80's, in fact the economy did at least as well as it's doing now.

Fiat money is not a storage of value, it's the current medium of exchange. If you want to store value buy assets that are not near bubble high values and hold them. It's called investing.

But, will the dollar continue to remain the worlds dominant currency?

From what I can glean it's being chipped away at currently

Who knows what the future holds but it's a trend I see as likely to continue

Probably not, but that would be true even if the U.S. had little or no debt. Eventually China will surpass the U.S. as the world's largest economy and perhaps India taking the number two spot. It might take 25 or 50 years, but with free world trade and the nearly free flow of technology the most populous nations will eventually have the largest economies. Another world war or worldwide natural disaster (pandemic, asteroid impact, super volcano eruption, etc.) could change all that.