Help! I have Silver Fever. Need advice. I saw this amazing post searching here in the group archives. (detail in comments)
(greatawakening.win)
🗣️ DISCUSSION 💬
You're viewing a single comment thread. View all comments, or full comment thread.
Comments (23)
sorted by:
Be careful, silver has been known to crash hard. Back in the 80s there was this silver fever. Lots of people lost a lot of money investing in silver. What I have been told about investing. It is like gambling, only put in what you can afford to lose and play different games. SO invest wisely and in different products.
Not that I disagree with being careful with your money and whatnot, but what happened in the 80s is much different from now. Look up the hunt brothers silver scheme. Basically a bunch of oil baron brothers tried to buy up the majority of the worlds silver and horde it all to force the price upwards. If I remember right they ended up getting like 40-50% of the worlds supply at the time under their name before someone caught on and regulators stepped in and changed the rules for things. They were leveraged to the tits trying to do this so they ended up being forced into liquidation by the banks they borrowed the modern equivalent of billions of dollars from to finance their scheme.
Which of course, resulted in 40-50% of the worlds silver supply being dumped onto the market all at once, resulting in the crash you're describing. MUCH different from what's currently happening with millions of individual people and hundreds/thousands of institutions (companies, funds, governments, etc.) buying it up and taking it off the market individually. The odds of EVERYONE dumping all of there stuff back on the market at once are much lower, I won't say impossible because nothing is impossible, but it's very slim based on existing behavioral patterns and considering the fact that a lot of "big buyers" are buying it up for institutional purposes like strategic manufacturing reserves, strategic government held reserves, etc. The type of thing that is NEVER gonna be put back on the market EVER because it'll either be used in manufacturing or held in a vault by the government.
Again, people SHOULD only invest what they can afford and not go crazy, but the situation now is MUCH different than what happened in the 80s. Its not another hunt brothers situation, this is systemic failure of the current monetary system and a flee to safe assets (with some investment ape like behavior as well like what happens with crypto and meme stocks, not much yet, but it'll grow over time as the prospects for stupid high returns become bigger)
iirc, the Hunt brothers didn't serve jail time, but huge financial penalties and lawsuits came out of their attempted coup of the silver market...not a financial wizard here, but things today are much different for the silver demand/supply...best of luck to all who are in or are considering getting in, pray about your circumstances, imo...
Pretty much, what they did wasn't like illegal to do for the MOST part (trying to buy up the world's silver supply), but if I remember right what DID land them in trouble was lying to lenders about how leveraged they were so they could go around to different banks and lenders and get basically the same leverage without telling any of them they ALSO had near identical loans with dozens of other lenders.
So that's why they got away without jail time, but it basically bankrupted all of them with the fines, debts they incurred, etc.
But yeah that was my main point, that today's silver market is MUCH different and the "hard crash" of the 80s was artificially engineered and in no way natural, but rather the result of greedy incompetence of literally 3 or 4 people (I can't remember if there were three or four brothers involved). INFINITELY harder to do that today with all the regulations in place, as well as the supply being diversified over millions of holders AND institutional players permanently taking it off the market for good for manufacturing usage and strategic reserves.