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posted ago by Sgt-Pepper1 ago by Sgt-Pepper1 +168 / -0

The Hunt brothers in the late 79-80, made a huge play against silver, both physical and futures. As the price rose from $10 to $50, the COMEX changed the rules, limited futures buying and ordered a silver sell only decree. CFTC promptly backed the decree. Of course the price of silver fell off a cliff. The Hunts, who did nothing illegal, accused members of holding short positions on silver, which later was proven true. Their brokerage, Bache (now Prudential Bache) was part of an emergency bail out plan approved by Paul Volker (Fed chair at the time) as he "feared a financial disaster". COMEX, CFTC, Fed Chair, multi-billion $ bailout, Hunt brothers forced in bankruptcy... same shit, different decade.

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jackneefus 2 points ago +2 / -0

The Hunt Brothers were trying to corner the market, which would have allowed them to control the price of silver and drive it through the roof. This is not technically illegal in itself, but there are complex laws involving deceptive practices around price manipulation.

I never realized banning buys but not sells had been done before. Although you do have to wonder -- who were the sellers selling to?