In February, 1985 the Hunt brothers were charged “with manipulating and
attempting to manipulate the prices of silver futures contracts and
silver bullion during 1979 and 1980” by the United States Commodity
Futures Trading Commission (CFTC) (the US government raised deposit
rates and trading restrictions) and fined $ 134 million in compensation
for a Peruvian mineral company. The Hunt brothers then declared
bankruptcy. And there is also a legendary investor who has also entered
this market however people only know him mostly through the stock market
– no one rather than Warren Buffett.
Warren Buffett also invested in Silver during 1997 - 1998, he bought
130 million oz. silver, which is equivalent to 4,043 tons. It generated a
pre-tax profit of more than $ 97 million for their Berkshire Hathaway
Group, Buffett revealed in a letter to shareholders in 1997. Berkshire
CEO described the purchase of more than 4,000 tons of silver as “back in
the past” because he had also invested in the metal in the 1960s. In
1997, Buffett once again bet on silver when he predicted the shrinking
reserves and the process of “issuing more money” that the central banks
was proceeding will push this metals price up.
Subsequently in the 2008 the historic event of financial crisis with
the Fed's QE bailout packages pushed silver to $49.5/oz, the highest
level since 1980. And then silver had a long slide in the price until
today.
Silver has had a 3,300-day decline chain until the time the author
wrote this analysis. And silver's chances are being strengthened as the
primary metal – gold has achieved an 80% recovery from its peak in 2011
,while silver is still down 65% from its own.
