The Hunt Brothers were on the ‘outside’ of the system and basically private individuals maximising what was ‘legal’ at the time. They weren’t a corrupt bank like JPM and they didn’t have the depth of political backing that might have saved them. Their investment at the time was ‘only’ $1billion. Mind you $1Bil in 1980 was worth much more than it is today!
Instead of closing out contracts with cash settlements, a common procedure on the commodities market, the Hunts took delivery on silver. They then stockpiled this silver and used their large cash reserves to buy up even more futures. The billions in demand triggered the rise of silver to more than $50 per ounce in 1980.
Yes, the Comex changed the rules on the Hunt boys by increasing the silver margin, forcing them to liquidate. If the Hunts were up to their knees in silver futures, today's shorting banks are way over their heads and in multiples of what the Hunt bros. accumulated.
Today, the criminality of the banks is now fully exposed. Unlike the Hunt bros., who did nothing illegal, the ‘insider’ banks that are short are soon to be buried in massive debt, thanks to their mis-adventures in Silver.
I am not sure how any change of Comex settlement rules can affect the final outcome. Then again, the criminality within the commodities markets, especially in the silver futures market, runs far and deep.
The implication of banks and regulators being complicit in this ongoing crime, are about to be resolved in a manner that will blow people away.
Well, that is my take on the current situation.
SVL Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
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