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Silverfinger - The True Story Of Nelson Bunker Hunt

Tyler Durden's picture




 

Over 30 years ago, a man by the name of Nelson Bunker Hunt hatched the perfect plan: protect his inherited wealth (which then was one of the largest legacy fortunes in the world) from the inflationary destruction of "paper" assets by converting his assets into silver, and in the process cover the silver market, and send the price of silver to an inflation adjusted price of over $140 (nearly three times higher than the nearly record nominal silver price hit last week). Understandably, Hunt's name has appeared very often in the popular media in recent months, since after all it was the "Hunt" price that the May 1 silver smackdown (which will most certainly never be investigated) that sent silver from $48 to $42 in seconds that was being protected by the paper cartel. Yet just who is Nelson Bunker Hunt? And how did he cover the silver market when did? What exactly did he do, and is someone doing a comparable silver cornering right now? And, most importantly, why? The answers, all of which are provided in this September 1980 Playboy article reprint, will surprise and astound many, primarily due to the myriad parallels between the world of the 1970s and our own. What follows is one man's attempt to escape from the "system."

From "Silverfinger"

IN THE SUMMER of 1979, an invisible hand reached out from an island in the Atlantic and quietly began tightening its grip on the world’s supply of silver. The fingers of that hand extended to London, New York, Dallas, Zurich and Jidda. But the only visible clue to its existence was a newly formed Bermuda shell corporation called International Metals Investment Company Ltd. That dull sounding little trading company was not just another offshore tax scam but the operating front for a secret partnership seemingly capable of controlling the world price and supply of silver.

Full article (pdf)

Silver Finger by Harry Hurt III - September Issue 1980 - Playboy

h/t Whit

 

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Thu, 05/05/2011 - 20:40 | 1245949 EscapeKey
EscapeKey's picture

This is an exceptional book, and I recommend everyone read it.

Monetary Regimes and Inflation: Peter Bernholz.

http://www.goldonomic.com/Monetary_regimes_and_inflation.pdf

 

5.2 HYPERINFLATIONS ARE CAUSED BY GOVERNMENT BUDGET DEFICITS

In this section it will be demonstrated by looking at 12 hyperinflations that they have all been caused by the financing of huge public budget deficits through money creation. To demonstrate this we present the evidence for twelve of the twenty-nine cases of hyperinflation (Table 2.1) in Figures 5.5 and 5.6.

 

Thu, 05/05/2011 - 20:49 | 1245988 Almost Solvent
Almost Solvent's picture

Don't forget to stop at your local coin shop on your way to the local bookstore. 

 

Or, don't forget to visit your favorite PM site on your way to Amazon.

Fri, 05/06/2011 - 00:25 | 1246395 asdasmos
Thu, 05/05/2011 - 20:52 | 1245990 Matto
Matto's picture

Absolutely paramount for all ZH's to understand where the silver market is at right now. Key developments have come through and action is required immediately!!!

 

Must watch:

http://www.youtube.com/watch?v=O0e1Y5FXNWs

Thu, 05/05/2011 - 21:07 | 1246033 Awakened Sheeple
Awakened Sheeple's picture

The YouTube vid is unavailable for people in the US. Can you give us a breakdown?

Thu, 05/05/2011 - 21:23 | 1246071 TeMpTeK
TeMpTeK's picture

I think he did give us the "breakdown"

Fri, 05/06/2011 - 07:20 | 1246695 tonyw
tonyw's picture

It's Olivia Newton-John - let's get physical

Thu, 05/05/2011 - 21:17 | 1246060 JustPrintMoreDuh
JustPrintMoreDuh's picture

This video contains content from UMG. It is not available in your country.

Thu, 05/05/2011 - 21:40 | 1246117 Matto
Fri, 05/06/2011 - 01:47 | 1246502 CD
CD's picture

Dude, rickrolling? I appreciate the attempt at humor, but that was too much.

Fri, 05/06/2011 - 02:14 | 1246525 Global Hunter
Global Hunter's picture

Physical physical...I wana get physical physical.  It was actually quite clever.

Thu, 05/05/2011 - 21:37 | 1246104 buck4free
buck4free's picture

It can all be reversed in "15 minutes".

Thu, 05/05/2011 - 22:08 | 1246177 Philidor
Philidor's picture

On The Serenity of Numeraire Change

The dollar is very sick, being fatally poisoned by years of debt and deficits stretching into both the past and future. It will probably die sometime before 2020. In the meanwhile, the doctors will throw every conceivable possible treatment at the patient in order to extend the patient's life, if only by a few months. In the Weimar Republic, a variety of bizarre laws were passed to hold off the inevitable passing of the Reichsmark (e.g. laws to make manufacturers fill out reams of paperwork applications to the government in order to secure price increases, thus supposedly slowing the rate of inflation). In the U.S. today, the governmental-financial complex ("bankstas") provides ample resources and vehicles for extreme life-support measures. Today's market action was a good example. The secret clue was given by Trichet's small remark the previous week that inflation expectations must be kept in check. After the demolition orchestrated this week in the commodities complex, on essentially no change in the fundamentals, you will have to admit that your inflation expectations have been substantially modified. It's been a brilliant show of force by the bankstas, replete with outstanding PR and talking heads. And while it doesn't address the core problems, it might well extend the patient's life by several months. It also has the brilliant side effect of discrediting the precious metals as a store of value, acknowledging in effect that there is a coming war of ideas regarding the successor to the throne of the dying dollar: shall it be all-electronic currency (the bankstas' choice) or gold and silver (the people's choice)? A currency dies when essentially everyone loses confidence in it. And as the process proceeds, people will be divided into early adopters, mainstream adopters, and late adopters (just like any other new trend) of confidence loss. Knowing that the dollar is dying, I have become an early adopter. Sure, I know that only my dollars can buy things now, but it no longer represents my unit for denominating my wealth. This is what economists call a "numeraire", or unit of value. But I am still working on my mental acceptance the change of numeraire from dollars to gold, where in the latter the only question is, what is my wealth in ounces? I take solice from the fact the Giovanni de Cosimo became the richest man in Italy around the early 1400's through owning only about 90,000 florins (about 9,000 ounces, worth roughly just $13 million at today's prices). The Zen of numeraire change is difficult to achieve, and it takes great effort for me not to anguish upon my dollar-based losses this week. I admit to not yet mastering this level of serenity. At the point of the dollar's death, however, I am confident my Zen practice will have served me well, regardless of the outcome of the battle for succession.

Thu, 05/05/2011 - 23:56 | 1246351 Tail Dogging The Wag
Tail Dogging The Wag's picture

Would you measure your wealth in ounces of precious metals (real money for over 6,000 years), or would you measure it in Bernank IOU notes (paper ponzi currency in a coma) signed by Mr Geithner?

I thought so. I also love the sound of a flatliner in the morning.

http://www.youtube.com/watch?v=T07ABb0n2rg

Fri, 05/06/2011 - 02:47 | 1246542 i-dog
i-dog's picture

"shall it be all-electronic currency (the bankstas' choice) or gold and silver (the people's choice)? "

This is the crux of the battle. Well said! May the people prevail.

PS. I also like your creative handle ... says it all :)

Thu, 05/05/2011 - 22:55 | 1246245 gorillaonyourback
gorillaonyourback's picture

its was interesting reading about silverfinger and how paul volker played a very key role in the demise of the price of silver.  They r doing the same thing now increasing margin requirements  maybe next allowing only liquidation sales.  the price kept going up it was only when volker raised the interest rate to dry up all the money is when silver came tumbling down.  THIS TIME I DONT THINK THE FED HAS THE BALLS TO RAISE INTEREST RATES.  maybe that guy talkin about a slingshot trade maybe on to something.  I personally believe or have faith the comex is broke and out of silver so im going to wait till monday or maybe tommorrow if i see a rate of silver price increases that i like to buy. 

 BUT then again if been wrong before, they r printing lots of money and its not getting into the publics hands so if they raise rates things cant get much worse or can they any opinions?

Fri, 05/06/2011 - 01:39 | 1246487 Captain Benny
Captain Benny's picture

Heres a rough chart of APMEX raw # of sales over the last few months.... just transaction #s, but you can get the picture.  https://docs.google.com/document/d/18U_lxCXwjymKoAVsrV-uEjaXFaP8JyZSpYFxf0ByMg0/edit?hl=en&pli=1#

Fri, 05/06/2011 - 05:42 | 1246642 Titus
Titus's picture

Later testimonywould reveal that nine of the 23 Comex board members held short contracts on 38,000,000 ounces of silver. With their 1.88 billion dollar collective interest in having the price go down, it is easy to see whyBunker did not view them as objective regulators. At the same time, though, the C.B.O.T. restrictions madeBunker even more bullish on silver, because, as he put it, “they show a silver shortage exists.”

Fri, 05/06/2011 - 07:46 | 1246720 Sam Clemons
Sam Clemons's picture

So wait, 12 of 12 or 12 of 29 were caused by govt budget deficits?

Fri, 05/06/2011 - 08:30 | 1246825 mgochoa
mgochoa's picture

For a moment I thought you were talking about Playboy. 

Fri, 05/06/2011 - 19:44 | 1249753 GregGH
GregGH's picture

How nice to see the first post also be a post worth reading ... thanks for sharing the link for the book ... my iPad is filling up much faster than I am reading them .. but thanks there the less

Greg

Thu, 05/05/2011 - 20:40 | 1245962 RealitiveMind
RealitiveMind's picture

Benny Zimbabwe at your service . . . . .

Thu, 05/05/2011 - 20:43 | 1245964 ShittyLipsMcCra...
ShittyLipsMcCrapStain's picture

Ordered up another 300oz at 33 today....thank you very much.

Thu, 05/05/2011 - 20:45 | 1245973 traderjoe
traderjoe's picture

What kind of silver? Where? If junk silver, I can understand price...

Thu, 05/05/2011 - 23:43 | 1246333 Lucius Corneliu...
Lucius Cornelius Sulla's picture

I sold everything at $45.  This is nothing more than a speculative blow off.  Buy now and you are catching a falling knife, IMHO.  The banks are insolvent.  With QE2 winding down and Federal spending under pressure, the debt bubble has reached another peak.  I suspect another round of deflation is beginning.  Remember what happened to commodities the last time that happened?

 

Fri, 05/06/2011 - 00:01 | 1246356 tmosley
tmosley's picture

Last time was nonsense.  The dollar as safe haven?  Please.

That's not to say it won't happen again.  People can be stupid.  But I somehow doubt it this time.

I won't let go of my physical for any price in dollars.  Only gold.

Fri, 05/06/2011 - 00:42 | 1246406 Lucius Corneliu...
Lucius Cornelius Sulla's picture

In the USA the money supply is measured by total debt outstanding.  All the FED has managed to do, even given its radical and illegal (as defined in its charter) measures, is hold the house of cards up.  Well, guess what?  Just because FASB changed the accounting rules hasn't made any of the non-performing loans start magically paying.  Those loans are on the books for probably more than double what they are worth.  As banks are forced to sell off their REO, they will have to realize the losses.  That is deflationary, as in money (credit) disappearing into thin air.  When the money (credit) supply shrinks, remaining dollars and safe debt will be more valuable.  People who think the FED is in control are mistaken.  The bond market is in control.  Bond prices are predicting deflation.  The USG will not continue to print because that will mean yields will rise and make the interest payments unbearable.  The world's largest debtor cannot afford to let that happen.

 

Oh, and I bought my silver at $6.50 and less.  At the time people were curious as to why anybody would want it.  Now I am hearing office chatter about gold an silver...

Fri, 05/06/2011 - 01:53 | 1246506 traderjoe
traderjoe's picture

And how would the financial system survive that sort of deflation? How would the gov finance the deficit? As things fall apart - why would people have more confidence in the dollar?

Fri, 05/06/2011 - 02:32 | 1246531 Global Hunter
Global Hunter's picture

If things go LC's route there is going to be a lot of pension plans and 401k plans under water furthermore even non investors pay attention to the stock market (even if they just hear it on their evening news).  I think the stock market dropping will cause at first concern and then panic whereas inflating the way out causes the illusion that everything is OK as most will just see that the markets are going higher and not give it too much consideration. They will be hoping that nobody makes the connection between price increases at the grocery store and price increases in their retirement funds.

Fri, 05/06/2011 - 03:07 | 1246561 LudwigVon
LudwigVon's picture

How would the gov finance the deficit? 

 

This is the part I don't get in that scenario as well...

Fri, 05/06/2011 - 03:14 | 1246567 LudwigVon
LudwigVon's picture

1. money (credit) supply shrinks, remaining dollars and safe debt will be more valuable.

 

2. continue to print because that will mean yields will rise


I agree with most of what you say, however, just like today, they seek to strike a balance between these two forces. Printing does continue to finance a good majority of the deficit. There will be further pressures to make fiscal cuts as this would aid the economy.

Fri, 05/06/2011 - 06:37 | 1246665 Withdrawn Sanction
Withdrawn Sanction's picture

Just because FASB changed the accounting rules hasn't made any of the non-performing loans start magically paying. Those loans are on the books for probably more than double what they are worth. As banks are forced to sell off their REO, they will have to realize the losses. That is deflationary, as in money (credit) disappearing into thin air.

 

In the deflationary collapse of bank credit you’ve described (w/which I largely agree), the idea is that the liquidated proceeds will flow into the remaining dollars.  I believe this is an overly strict, if traditional, interpretation of the deflationary thesis.  What if, instead, the remaining proceeds flow into “money” (broadly and correctly conceived) instead of FRNs per se’.  (After all, FRNs are really just debt instruments backed by debt whose value seems likely to deflate along w/the deflating values of their collateral backing.) 

In that case, value fleeing out of credit instruments seems just as likely to flee into the money forms of long-standing (i.e., into gold and silver).  Indeed, as JP Morgan (the man, not the shell of an institution that carries his name) noted, “gold is money; nothing else [is].”  It IS money because it cannot be conjured into existence costlessly.  That’s why, at bottom, honest people love it, and why dishonest people loathe it. 

 

Thu, 05/05/2011 - 20:43 | 1245970 Dr. Porkchop
Dr. Porkchop's picture

Ben Shalom Johannes Gutenbergnanke.

Thu, 05/05/2011 - 20:44 | 1245971 ShittyLipsMcCra...
ShittyLipsMcCrapStain's picture

Isn't that Benny Hill?

 

Thu, 05/05/2011 - 20:48 | 1245978 Henry Chinaski
Henry Chinaski's picture

I remember the seventies.  They sucked.

Yes, I see a lot of similarities to the present days, but without the price and wage controls... so far.

Thu, 05/05/2011 - 20:48 | 1245982 EscapeKey
EscapeKey's picture

Oh, they're coming. And it'll all be caused by the "speculators", completely ignoring that the gains of ALL "speculators" won't make a dent in the deficit.

Fiscal illeteracy FTW! (sadly!)

Thu, 05/05/2011 - 21:45 | 1246125 Gold 36000
Gold 36000's picture

Why do you care are you not across the pond?

Thu, 05/05/2011 - 21:46 | 1246127 EscapeKey
EscapeKey's picture

You think the situation differs here in Ole Blighty? Fuck, I have to listen to morons on a daily basis blaming it on "speculators" and switching off when I attempt to explain the "deficit" to them.

Thu, 05/05/2011 - 22:04 | 1246165 Dr. Porkchop
Dr. Porkchop's picture

Don't engage the troll... he's already exposed himself as a multiple account posting douche. Except he forgot to log out when reponding to himself.

Fri, 05/06/2011 - 07:26 | 1246702 StychoKiller
StychoKiller's picture

(S)He's also responded to his/her own posts -- perhaps it's cyber-induced Schizophrenia! :>D

Fri, 05/06/2011 - 10:10 | 1247332 Troublehoff
Troublehoff's picture

Shit, at least the 'morons' you speak to are paying attention enough to at least consider what the reasons for inflation might be.

The majority of people in this country are narrow minded and never consider the fundamental reasons as to why the world is as it is.

They don't understand or care to understand fractional reserve banking. When I tell them that the private banking institutions which employ our elites are allowed to borrow money at the base rate and lend it back to the government (us) at a much higher rate of interest, at zero risk they do not seem to care or make the connection that this is effectively a licence to print money which is backed by the productivity of the taxpayer

True, it is not rocket science to deduce that we are fucked and heading for an economic depression but the level of obsfucation  and the abstraction level at which people live their lives mean that it just doesn't feature in most peoples world view.

It is more palatable to a politician to add to an already large debt load than to allow any of the unpleasant side effects of a deflation such as defaults, skeletal public services / entitlements or high unemployment.

 

For these reasons, I've got to agree with you. We're heading for some severe inflation. Sooner or later.

Thu, 05/05/2011 - 21:10 | 1246034 Caviar Emptor
Caviar Emptor's picture

I take difference: the seventies were better than now economically and whole lot more fun. 

Thu, 05/05/2011 - 21:12 | 1246039 Freddie
Freddie's picture

+1

At least Nixon, Ford and Carter had a USA BC and were eligible.

 

Thu, 05/05/2011 - 21:13 | 1246043 fuu
fuu's picture

No AIDS.

Thu, 05/05/2011 - 21:19 | 1246062 Caviar Emptor
Caviar Emptor's picture

Party central. Great nightlife. Loads of freedom.  Nonstop booty call. 

Thu, 05/05/2011 - 21:39 | 1246114 EscapeKey
EscapeKey's picture

Booty time, booty time

Across the USA

Booty time, booty time

Waheyhey

Thu, 05/05/2011 - 22:35 | 1246222 fuu
fuu's picture

Shake that junk.

Thu, 05/05/2011 - 22:42 | 1246224 cpnscarlet
cpnscarlet's picture

The 70s in NYC - Dad layed off by Chase; expensive hobby (Lionel Trains) and no summer jobs; mugged in Prospect Park twice; Even Catholic school education started to suck; graffiti EVERYWHERE; welfare hotels in Park Slope; subway fare always increasing...John (F***ing) Lindsey...Abe (Bullsh*t) Beame...people actually thinking liberals had answers...

NO FUN AT ALL....except for Joan C....what a rack!

Thu, 05/05/2011 - 23:01 | 1246251 Freddie
Freddie's picture

Wow you dated Joan Crawford?

Thu, 05/05/2011 - 23:27 | 1246294 WmMcK
WmMcK's picture

I thought he meant Collins, I always preferred Severance.

Fri, 05/06/2011 - 00:05 | 1246360 wisefool
wisefool's picture

Rivers has always been comfortable talking about her rack. Good and Bad.

Thu, 05/05/2011 - 23:09 | 1246267 WmMcK
WmMcK's picture

Depended on where in NYC.  I was working on the 35 floor of WTC then.

Split skirts were in vogue and lots of wind between the buildings ...

Besides the crowded E trains  and some awful music it wasn't so bad.

Wish I could take my kids to that time and place but it's gone forever.

Fri, 05/06/2011 - 06:25 | 1246653 bigkahuna
bigkahuna's picture

I will take the 80s. You could get into the swimming pool for 35 cents. A kid could collect aluminum cans in the morning, turn them in for a dollar or two, ride bike to the pool in time for a hot afternoon/evening---and have change left over for candy. The good candy. 

Fri, 05/06/2011 - 17:47 | 1249380 uhb
uhb's picture

+2 trillion. the 80s absolutely ROCKED.

Fri, 05/06/2011 - 18:01 | 1249442 ilovefreedom
ilovefreedom's picture

i'll take it too!

 

I graduated from a top 20 college in the 2000s, I make more than all my friends and I feel like in the 1970s I could afford: 2 houses, 3 cars, a boat, two jetskis, a wife, a mistress and 3 kids.

Today, I can't even afford to buy a house.

Fri, 05/06/2011 - 00:35 | 1246417 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Price and wage controls?  Give me a break!  Wake me up when wage inflation begins.  Sure, food and energy prices have been rising but that will end with QE2.  This is like the 30s not the 70s.  The 30s because we have a huge amount of debt to work off.  In the 70s we were still in pretty good shape as far as debt to GDP was concerned.  That is why there was so much inflation.  The multiplier effect only works when the system is not saturated with debt.

Fri, 05/06/2011 - 06:26 | 1246659 bigkahuna
bigkahuna's picture

The only problem with the 30s was an economic depression.

Fri, 05/06/2011 - 06:42 | 1246668 Withdrawn Sanction
Withdrawn Sanction's picture

Other than that, Mrs Lincoln, how was the play?

Thu, 05/05/2011 - 21:35 | 1245979 Yen Cross
Yen Cross's picture

So Bond! James Bond, was really long SILVER! Golden dingle berries!

 

Update: Dr. Jelly Finger

Thu, 05/05/2011 - 20:58 | 1245999 zaknick
zaknick's picture

.....

mmmm mmmm mmm

Pladizow!!

mmmmmm mmmmmm

I luvz u both!!

Thu, 05/05/2011 - 20:58 | 1246001 TheGreatPonzi
TheGreatPonzi's picture

Seems like a man who attempted to defeat the banking cartel... and Gentile, on top of that. 

Quite foolish: the primary dealers control the printing press, and the printing press can do whatever she wants, including flooding any market with unlimited ersatz money naked shorts. 

Thu, 05/05/2011 - 21:01 | 1246010 Uncle Sugar
Uncle Sugar's picture

Good news. Going forward, the CME has announced they will only raise margin requirements on POMO days. Weekends are clear...for now.

Fri, 05/06/2011 - 00:57 | 1246450 Keri at Bankste...
Keri at Bankster Report's picture

I read all 19 pages of this article, and the most interesting part to me was this:

"In a move aimed directly at the Hunts and the other big buyers, the Board of Trade raised the margin requirement and declared that silver traders would be limited to 3,000,000 ounces of futures contracts. Traders with more than that would have
to divest themselves of their excess futures holdings by mid-February 1980.
With that, the battle lines were drawn. Bunker let it be publicly known that he thought the C.B.O.T. was changing the rules in the middle of the game, and vowed to fight the limits all the way. Privately, he regarded the C.B.O.T.’s action as another conspiracy against him by the Eastern establishment. And for once, he had a good prima-facie case.

The boards of both the Chicago and the New York exchanges were composed not only of “outside” directors but also of representatives of the major, usually Eastern-based brokerage houses. Later testimony would reveal that nine of the 23 Comex board members held short contracts on 38,000,000 ounces of silver. With their 1.88 billion dollar collective interest in having the price go down, it is easy to see why Bunker did not view them as objective regulators."

 

Hmmm.

Fri, 05/06/2011 - 04:05 | 1246600 OldPhart
OldPhart's picture

I read all 19 pages, too.  What struck me was the BAIL OUT for the lenders (banks) when the Hunt's got their nuts crushed by the markets.

Fri, 05/06/2011 - 05:49 | 1246643 Titus
Titus's picture

I noted this too and posted it above. JP Morgan? 

Thu, 05/05/2011 - 21:05 | 1246016 TheGreatPonzi
TheGreatPonzi's picture

Just liquidated all my leveraged silver longs, gonna buy more physical monday. 

The nominal Comex price can easily drop further than $34. 

Thu, 05/05/2011 - 21:43 | 1246119 Muir
Muir's picture

I hope that was a joke

Thu, 05/05/2011 - 22:14 | 1246188 JW n FL
JW n FL's picture

buy on the way down.. you will average out beautifully! shit take some on the way back up to a point.. anything in the $30's (or less, dream on) buy and maybe even $40 -$41 just to drive the market.. you will not miss the paper..

 

then trade silver for gold depending on what is good or better..

 

and if you really get hooked on tangibles.. do a little platinum trading.. all physical for physical..

 

and get a big box.. and a Pirate flag too!

Thu, 05/05/2011 - 23:15 | 1246279 WmMcK
WmMcK's picture

I like the Pt/Ag > 50 since I hedged when it was <40 (not that long ago!)

But the local dealer only has 90% left with ASE's 2 weeks out.

Thu, 05/05/2011 - 21:05 | 1246017 Caviar Emptor
Caviar Emptor's picture

Well there goes the last hedge ordinary Americans had against the planned dollar devaluation. Fed and TPTB will gradually make it impossible and perhaps illegal to do anything but buy flat screen TVs, iPads and rent shows from Netflix. Look for more central planning to be handed down in the days to come. 

Thu, 05/05/2011 - 21:11 | 1246032 TheGreatPonzi
TheGreatPonzi's picture

The PDs can absolutely pressure down the nominal commo prices ; but in the end it only strengthens the monetary base expansion. 

This crisis will end in total destruction of the USD purchasing power, not another way ; the feds and the FED will never allow deflation, wich would mean the end of the US gov and a chain of derivative defaults. Prepare accordingly. 

Hyperinflation will not happen before 2013-2014, and before that, everything will look relatively calm.

Thu, 05/05/2011 - 21:13 | 1246044 Caviar Emptor
Caviar Emptor's picture

Yup, we agree. It's the plan and they have a whole range of legal repression options at their disposal. They're getting bolder and that opens the door to more drastic action. We are drifitng to ever more centrally planned and controlled economics

Thu, 05/05/2011 - 23:31 | 1246300 Dr. Porkchop
Dr. Porkchop's picture

They only know fraud and force... The fraud will continue for awhile yet.

Thu, 05/05/2011 - 21:33 | 1246092 thetruth
thetruth's picture

I think hyperinflation sooner than you think.  September 2012

Fri, 05/06/2011 - 04:09 | 1246602 OldPhart
OldPhart's picture

Between now and then, dig a deeper hole to hide your stash, and cover it with plumbing made of copper.  They will eventually be vigorously searching for those that have taken physical delivery (and don't think they don't already have our addresses, credit card info, etc).

Good thing I live in the desert.  There's a lot of empty, remote land out here.

Thu, 05/05/2011 - 21:09 | 1246026 Rynak
Rynak's picture

One IMO rather important difference, which people who say that "this" is exactly a replay of the hunts brothers do not acknowledge, is that in the case of the hunts, a handful of people attempted to control the silvermarket by squeezing it dry.

That does not seem to have any similarity to what is happening now. What is happening now is investors *in general* starting to squeeze silver. What is happening now is the attempt to uphold the SLV scheme.... where in the current scenario, are the handful of people squeezing the market? Nowhere, there is no relation in this regard.

What IS similiar, is that physical gets squeezed, that there is a sentiment to establish PMs as alternative currencies (yet, here not for a few self-declared few, but for everyone), and what is similiar is how the regulators intervened, and attempted to push down prices.

Thu, 05/05/2011 - 21:17 | 1246055 Caviar Emptor
Caviar Emptor's picture

Agree. The Hunts put on a silver corner. Ordinary Americans (themselves or through intermediaries like mutual funds and ETFs) did not and could not participate, unlike today. What we saw in 2009-11 was a rush to protect one's wealth and buying power, not market manipulation like the Hunts

Thu, 05/05/2011 - 21:17 | 1246028 Zero Govt
Zero Govt's picture

Let's forget Mr Hunt and a sad day at the office in Silver...

Cheer up, tomorrow Llyod Blankfiein is infront of possibly his last Goldman Sucks shareholders meeting 

..amongst the 'gems' to be discussed (fobbed off) is driving his bank into bankruptcy

..losing $500m in fines to the Feds for various criminal trading activity

...and how this (bankrupt and dodgy business) relates to "doing Gods work"

Yes it's no surprise when someone thinks the sun shines out their ass it leaves little room to manouvre and from the other end out comes talking nothing but shit!

Thu, 05/05/2011 - 21:08 | 1246030 wirtschaftswunder
wirtschaftswunder's picture

"Bunky's Corner" was one of the great moments of finance. But was he genius or dummkopf?

Thu, 05/05/2011 - 21:12 | 1246038 fuu
fuu's picture

Not to be off topic but it looks ike there are a couple of gaps on that silver drop. Just above $47 and from $45 to $44.

 

That speaks to no bid? Why was there no bid?

Thu, 05/05/2011 - 21:17 | 1246064 wirtschaftswunder
wirtschaftswunder's picture

Breakaway gaps.

Thu, 05/05/2011 - 21:10 | 1246041 RobotTrader
RobotTrader's picture

Hunt was a classic.  He put all his eggs in one basket, tried to stand toe to toe with Uncle Gorilla, and was financially executed.

He never recovered.

 

Thu, 05/05/2011 - 21:18 | 1246057 wirtschaftswunder
wirtschaftswunder's picture

He was the quintessential bagholder. He'd still be waiting now 31 years later.

Thu, 05/05/2011 - 21:18 | 1246058 TheGreatPonzi
TheGreatPonzi's picture

Well, he is probably the first guy who attempted to execute Uncle Sam. He was 30 years too early, the beast was still strong back then. But the day of the slaughter will come, Robot: no government has an eternal right to power. 

Thu, 05/05/2011 - 21:16 | 1246061 EscapeKey
EscapeKey's picture

Yeah, another victory for financial fraud. Good to see whose side you're on.

Thu, 05/05/2011 - 21:20 | 1246068 wirtschaftswunder
wirtschaftswunder's picture

You only endore the financial fraud in which you stand to benefit?

But you really miss the point. There was no fraud in Hunt's Corner.

Thu, 05/05/2011 - 21:28 | 1246089 EscapeKey
EscapeKey's picture

Way to go reading into what I didn't say.

Thu, 05/05/2011 - 22:02 | 1246160 wirtschaftswunder
wirtschaftswunder's picture

Yeah, another victory for financial fraud. Good to see whose side you're on.

 

Way to go reading into what I didn't say.

 

Does every third letter spell out "Paul is the walrus"?

 

 

 

Thu, 05/05/2011 - 21:23 | 1246069 Muir
Muir's picture

Robo, it's amazing how many want to play the game and not even learn it's History.

They never read Mamis, Jim R, Baruch they think they understand Mendelbrot, Taleb and Schiller from dust jackets and believe themselves sophisticated that they heard about Behavioral Finance in PBS but never read Thaler or Gerd G.

 

Hell, they don't even read the contracts they trade.

 

And the bugs think they have found the Holly Grail (for the ten thousands time)

-

But they are soo sure of everything.

 

Thu, 05/05/2011 - 21:27 | 1246085 Gold 36000
Gold 36000's picture

I never read the book that was allegedly about him but even the great trader Jesse Livermore who made a fantastic fortune speculating ended up broke.  Good thing I don't know how to trade.  I can stay broke in much simpler ways.

Thu, 05/05/2011 - 23:48 | 1246337 RockyRacoon
RockyRacoon's picture


Amazon.com: a professional trader's review of Jesse Livermore ...

The best single work on Jesse Livermore, November 13, 2005 ... also dispels the common myth that Livermore committed suicide after going broke for the last time

. In actuality, when he died he had an irrevocable trust worth $1 million, ...
Mon, 05/09/2011 - 22:57 | 1246560 GoinFawr
GoinFawr's picture

Well Muir, on a long enough timeline you have to admit that some things only stand to reason.

Alternately, I guess you're right in saying that I can only speak for myself with any certainty when I say that as a creditor I would rather be paid in full, without counterparty liability, than receive payment in debt backed by more counterparty liabilities than I can imagine, as I can imagine quite a lot...

Also: millions with a few bucks is very different than a few with a million bucks; harder to target, anyway.

Thu, 05/05/2011 - 21:55 | 1246151 Teamtc321
Teamtc321's picture

Sleep well at night holding Uncle Gorilla's with your ass cheeks princess. 

Thu, 05/05/2011 - 21:12 | 1246047 Muir
Muir's picture

"and in the process cover[sic] the silver market"

 

"And how did he cover[sic] the silver market when did? "

-

and I am supposed to take seriously an article which twice fails on the word "corner?"

Whoever wrote this needs to freshen up on Wall Street History and learn just what the word means.

-

Thu, 05/05/2011 - 23:02 | 1246250 cxl9
cxl9's picture

I noticed that too, and some other odd word choices as well. My conclusion was that the document presented here was scanned from the original (paper) version of the article and the OCR software was not perfect; it occasionally guessed at a word incorrectly. So perhaps your dismissal of the entire article solely on the grounds of spelling is a bit too hasty.

Thu, 05/05/2011 - 21:21 | 1246074 Caviar Emptor
Caviar Emptor's picture

Hunts = it was all about ego. They were already billionaires (back when that really meant something).

Now = it was all about financial survival for the many in a sinking economy with currency devaluation. People trying to protect their buying power and living standard. 

Thu, 05/05/2011 - 21:30 | 1246084 chump666
chump666's picture

...and the copper slaughter next.  Once China flips out some fund somewhere cornering the copper markets.  How history repeats it's self.

Mind you the biggest market manipulators in the history of the markets   :Japan, are about to start selling massive amounts of YEN again.

Thu, 05/05/2011 - 21:30 | 1246094 EscapeKey
EscapeKey's picture

Either they sell Yen, or they sell UST's, which the Fed has to cover by... printing. Either way, it's more fiat currency in circulation.

Thu, 05/05/2011 - 22:14 | 1246193 Yen Cross
Yen Cross's picture

"Or they sell JGB's" Denomonated in USD.

Thu, 05/05/2011 - 21:30 | 1246087 Atomizer
Atomizer's picture

Do you realise, one Sunday afternoon the MSM will announce a breaking news event in 15 minutes. You'll be told that the USD (DXY) was buried at sea. Due to prior administrations, the dollar has defaulted and will be replaced under a new SDR currency system. Tick, tick, tick.

Keep your fucking head in the sand.

The Five Stages of Death

http://www.youtube.com/watch?v=Usm9SpnHYJQ

Debt saturation has become the immediate focal point in policy making fears. Blow-back is the worst shiver a MSM Bull market fluffer envisions.

Thu, 05/05/2011 - 21:31 | 1246090 Gold 36000
Gold 36000's picture

Does this mean it be time to go pyro on everyone's ass? Word?  Gold 36000 for president.

Thu, 05/05/2011 - 21:30 | 1246093 Yen Cross
Yen Cross's picture

A junk a day keeps reality in check! Keep up the good work un-knowing ones.

Thu, 05/05/2011 - 21:38 | 1246107 Gold 36000
Gold 36000's picture

THEY BE PO MO FOS LIKE ME THE ONES JUNKING YOUR ASS BUT YOU ALWAYS RESPECTFUL.  IF ELECTED PRESIDENT I WILL NOT BURN DOWN YOUR PLACE. YOU ARE A NICE GUY FOR ONE OF SATAN'S HELPERS. LOL

Thu, 05/05/2011 - 21:40 | 1246112 Yen Cross
Yen Cross's picture

Thank you as I cower next to my Bull Dozer.

Thu, 05/05/2011 - 21:34 | 1246096 Xennady
Xennady's picture

I saw that mention of Hunt's desire to protect his inherited wealth- and I thought of Gonzalo Lira's theory about an incipient hyper-inflation killed by Paul Volcker.

Oops. Early is wrong. Thirty plus years too early.

 

 

Thu, 05/05/2011 - 21:35 | 1246101 Gold 36000
Gold 36000's picture

OMG THEY ARE TAKING OUT SILVERBUGS ON A STRETCHER TONIGHT GUYS LOOK AT AFTER HOURS TRADING.  OMG!

Thu, 05/05/2011 - 21:40 | 1246113 Atomizer
Atomizer's picture

Just keep polishing your hoard. Sit and wait. Gold & silver will rocketship.

Thu, 05/05/2011 - 21:41 | 1246116 Gold 36000
Gold 36000's picture

I wish I had a hoard I can barely afford the gasoline to fulfill my campaign pledge.

Thu, 05/05/2011 - 23:03 | 1246212 Muir
Muir's picture

@atom

Just keep polishing your hoard. Sit and wait. Gold & silver will rocketship.

-

Gollum: “Bless us and splash us, my preciousss!”

-

Thu, 05/05/2011 - 21:44 | 1246120 Yen Cross
Yen Cross's picture

LONDON CALLING! " I live by the river" !

Thu, 05/05/2011 - 21:52 | 1246143 Atomizer
Atomizer's picture

The Clash - London Calling

http://www.youtube.com/watch?v=FiVvA9YQpiI

Thu, 05/05/2011 - 22:05 | 1246169 Yen Cross
Yen Cross's picture

Thats your trade my boy. Quiet

Fri, 05/06/2011 - 01:41 | 1246489 Rusty Shorts
Rusty Shorts's picture

 - what's a poor boy to do?

Thu, 05/05/2011 - 21:48 | 1246132 Gold 36000
Gold 36000's picture

OMG the shorts are killing it!  This is fun to watch even if I can't trade.  I love a good street fight.

Thu, 05/05/2011 - 22:05 | 1246168 Teamtc321
Teamtc321's picture

Really? I think it's like bringing a knife to a gun fight but if your not a paid troll then you are a fucking robot.

If anyone and I mean anyone can't see this is total outright fiat boom to all market's then keep that head in that ass so you don't get ring around the collar.

Sweet dream's .......

Oh, I killed it also with 35 put's overnight at .22 and sold at the 35 bounce for 1.72, yip, and you got the prize troll, buying more physical saturday so let's bang her down again tommorrow bud..........

 

Thu, 05/05/2011 - 22:23 | 1246199 Yen Cross
Yen Cross's picture

What are you trading Team. ? What are your short term trading goals? Bullets are worthless here. What are your monetary objectives?

Thu, 05/05/2011 - 21:56 | 1246146 Xennady
Xennady's picture

I'm not selling. I'm vastly more worried about what will be going on years from now. The present doomed attempt to kill interest in commodities including silver is just a twitch in the death spiral.

Thu, 05/05/2011 - 22:05 | 1246172 Rynak
Rynak's picture

Just be sure to diversify.... don't bet everything on one card, especially not silver (NOT argueing against buying silver (especially not at the ridiculous prices now), but silver is traditionally more volatile than i.e. gold). Think carefully about a basket of anti-crisis investments, and hell, buy in may and go away - let others attempt to sell in market out of alice in wonderland.

Thu, 05/05/2011 - 22:27 | 1246207 Xennady
Xennady's picture

Yeah, point taken and I know you're giving good advice. I'm doing my best to follow it. But what precious metals I have aren't going to the coin store because margin requirements for silver have been raised five times this since Tuesday, or because that made the price drop  to what it was Monday.

I know how this ends. This ain't 1980, and Ben Bernank ain't Paul Volcker.

 

Thu, 05/05/2011 - 23:16 | 1246275 gorillaonyourback
gorillaonyourback's picture

its a tough call, but i want to say bernanke doesn't have the balls to raise rates, but on the other hand no fiat money is getting into the peoples hands so if they raised rates what harm would that do?  trying to front run the fed with no help from bill gross:(

Thu, 05/05/2011 - 23:21 | 1246284 Yen Cross
Yen Cross's picture

I have a G-5 to catch. Jet lag again. We will talk in flight. gotta reconfig. Internet.

Thu, 05/05/2011 - 22:04 | 1246166 Johnk
Johnk's picture

Interesting how Trichet's dovish comments at least slightly aggravated the metals panic. 

So if the Europeans create more money out of nothing just like Ben does, that's a bad thing for hard money? 

Someday this war's gonna end.

Thu, 05/05/2011 - 22:20 | 1246200 Teamtc321
Thu, 05/05/2011 - 22:47 | 1246229 Yen Cross
Yen Cross's picture

Ok now you make sense. Break that trade down to a 5-1 ratio. You rent housing, so buy some consumer spx trades. they pay dividends (slight inflation hedge)  and your investment is off set by use. Trade well. KENTUCKY DERBY!

Fri, 05/06/2011 - 01:44 | 1246490 Yen Cross
Yen Cross's picture

Who is the new guy? Angela is porking him.

Thu, 05/05/2011 - 22:39 | 1246223 wisefool
wisefool's picture

Every once in a while those drunks in hollywood get it right (via thier adaptation of novels) The Hunt brothers were like the tin man in that they were to humble to corner the gold market, I mean the ruby slipper market. I mean the tumeric market. I mean the opium<->silver market. I mean, let me know when the Hunt Brothers are as recognizable as Judy Garland.

Thu, 05/05/2011 - 22:47 | 1246235 longorshort
longorshort's picture

You guys are greedy.  Should have been happy at 49 on silver, took your profits waited for a new ass mispricing or short.  Lots of nice people are gonna get slaughtered.

Fri, 05/06/2011 - 04:22 | 1246605 OldPhart
OldPhart's picture

Well, I bought a meager 10 ounces last week at $49 plus the vigorish to the dealer.  It goes into the drawer and sits.  I'm a little miffed that if I had waited two days I could have got it in the $30's, but what the hell.  Over the last 15 years I've still averaged around $17 or lower.  I'll hold and wait another 10 years or so.

What I do miss is the opportunity to by a tube of eagles for less than $200. 

Fri, 05/06/2011 - 09:08 | 1247014 FEDbuster
FEDbuster's picture

My $12 silver sits next to my $260 gold, and both aren't going anywhere.

Thu, 05/05/2011 - 22:51 | 1246244 candyman
candyman's picture

Back in 1979 I just graduated from college with my first degree...a BA. My Dr.

had a brother who was a silver trader and he told me a story about how the

brother met with Mr. Hunt. The brother went to Mr. Hunts office for an

interview to discuss how to corner the market. Hunts desk was completely

clean, not one piece of paper on it, it was spotless. Mr. Hunt said

"If you need any kind of paper or document to convince me how to trade this 

market you are the wrong person for this job." He did not get the job.

 

Thu, 05/05/2011 - 23:04 | 1246253 wisefool
wisefool's picture

Timmay agrees. "I don't need paperwork, I am the head of the IRS, ... err wait."

I respect PM bugs, and will do my level best to help you into your indoctrination into the world of 1099 for transactions.

Fri, 05/06/2011 - 01:47 | 1246494 Yen Cross
Yen Cross's picture

Paying taxes is a good thing. Revenue. The more you make the more you pay. I'm good on that. It's the worthless scumbags that suck my tax dollars, that bothers me!!!!!!!!!!!!!!

Thu, 05/05/2011 - 22:59 | 1246246 Tapeworm
Tapeworm's picture

Anyone here notice that SLV traded 81% of the issued shares?

Thu, 05/05/2011 - 23:00 | 1246249 Muir
Muir's picture

Did you check C some months ago.

 

Thu, 05/05/2011 - 23:07 | 1246256 tony bonn
tony bonn's picture

"Any damn fool can run a printing press"

lmao...whatever nelson's short comings, he spoke prophetically of the chairsatan

so the hunts were at war with the military-imdustrial-bankster complex...the massive shorts on wallstreet were not going to allow the rednecks from texas to overcome their short positions....so their lackey paul volcker and the comex management did just what they are doing now and just what they did in 1929 - 1941 - choking the supply of money and targeting their competition for destruction....

and all the hunts wanted to do was take physical delivery of silver.....can't do that - comex doesn't have it....just like today.

Thu, 05/05/2011 - 23:12 | 1246270 candyman
candyman's picture

spot on!

Thu, 05/05/2011 - 23:23 | 1246285 gorillaonyourback
gorillaonyourback's picture

yes but do you think bernanke can raise rates?

Thu, 05/05/2011 - 23:35 | 1246304 candyman
candyman's picture

are their any Rothchilds learking around?

 

Thu, 05/05/2011 - 23:35 | 1246308 wisefool
wisefool's picture

+1.

Thu, 05/05/2011 - 23:41 | 1246325 I am Jobe
I am Jobe's picture

Ben has no balls to raise rates. ECB infact stopped from raising rates yesterday. However Asia keeps on chugging raising rates. Interesting times we live in. I suggest moving out of USD and out of the USA soon.

Fri, 05/06/2011 - 00:31 | 1246404 raki_d
raki_d's picture

But move out of USA to where - moon ?

Fri, 05/06/2011 - 01:20 | 1246475 Rusty Shorts
Rusty Shorts's picture

 - lets see, 'merica = 3 hundert million ... rest of the world = 6.5 billion ...

Fri, 05/06/2011 - 01:49 | 1246499 Yen Cross
Yen Cross's picture

I'm @ 42 KILO. On my way over seas. How you doing? I'm 250k on that dip.

Fri, 05/06/2011 - 02:06 | 1246519 Rusty Shorts
Rusty Shorts's picture

I'm at 27 jigawatts.

Fri, 05/06/2011 - 02:15 | 1246526 Yen Cross
Yen Cross's picture

Well Done. What color! Solid or Sodium?

Fri, 05/06/2011 - 02:53 | 1246551 Rusty Shorts
Rusty Shorts's picture

Gamma Ray colors.

Fri, 05/06/2011 - 03:34 | 1246581 Yen Cross
Yen Cross's picture

Rusty you kick good things in the right way. I'm proud of you.  You don't need my support. You're a natural leader! I'm watching the consolidation in the crosses. Leg 3 is coming. I have my limit orders placed.

Fri, 05/06/2011 - 04:25 | 1246608 OldPhart
OldPhart's picture

dammit, tried to squish your avatar.  Thought I was having DT's.

Fri, 05/06/2011 - 02:14 | 1246524 Yen Cross
Yen Cross's picture

Chair Lucifer is done. The Bond markets will sort it out!

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