It worked, until it didn’t. Hunt Brothers actually did accumulate about 30% of the world’s supply, and drove the price way up. But they got greedy and held/accumulated for too long. They should have been taking some profits along the way. The market got wind of it, the regulators took notice, and soon enough people took the other side of the trade in bigger numbers. They lost about 80% of their family’s oil fortune in the end. Losses of about $4 billion in 1980’s money. That’s about $12.5 billion in today’s inflation adjusted dollars.
Question: So much of commodities trading is completed with holders never taking physical possession; what happens when the price takes off and buyers demand delivery of silver...especially holders of say $20/oz silver?
“The market got wind of it, the regulators took notice, and soon enough people took the other side of the trade in bigger numbers. “
If you put the regulators in the 3rd position that is what happened with Gamestop. Difference is social media allows smaller players other than big boys like the Hunt brothers.