by Dr. Jeffery Lewis, SilverBearCafe.com:
History remembers the last nominal high in the price of silver before the more recent high of $49.77 seen in April of 2011 as an anomaly that was largely induced by the Hunt brothers’ purported attempt to corner the market by buying large quantities of silver and silver futures to the point where they held rights to over half the global amount of deliverable silver.
This remarkable event began in the late ‘70s and led to a sharp rise in the price of silver to a then-all time high of $48.70 per ounce. The dramatic rally culminated in early 1980 after Comex silver exchange trading rules were changed to make margin purchases more difficult, thereby forcing the Hunt Brothers to miss a $100 million margin call. The price of silver then collapsed in a traumatic market event that occurred on March 27th of that same year, which has since been dubbed Silver Thursday.
Although later forced to pay out over a hundred million dollars on civil claims that they had conspired to corner the silver market, a loss that ultimately led to their bankruptcy filing, the Hunts claimed that they were simply attempting to start a precious metals backed currency as an alternative to the virtually intrinsically worthless paper Greenback.