Previous And Current Market Manipulation With The Price Of Silver
- By: Joann Chandler
Investors have constantly picked silver since this metal was first discovered, and the silver spot price history can be extremely revealing. There were instances in the past when market manipulation had been a huge reason for problems, and also the current market rules weren't in effect for most of the centuries that silver was traded on international markets. It was just in the recent centuries that the silver market was regulated to any degree and market manipulation has happened that triggered silver to attain record prices before steps were considered to correct these issues.
Among the most well known periods of market manipulation was the endeavours by the Hunt brothers and their team of associated investors to corner the silver market and pull in enormous earnings as a result .This occurred in 1979 and early 1980, and the results of the manipulation were devastating. In 1979 the Hunt brothers teamed up with a number of affluent investors from the Middle East. The group started to purchase all the silver that was obtainable,and at one point it is believed that more than half of the obtainable silver around the globe was bought by the group .
The outcomes of the Hunt brother activities was that silver attained remarkable spot prices, at one point attaining close to $50 an ounce before coming back down.In early1980 new government regulations were passed that assured this manipulation would never happen again at the same level.
This isn't just the period in history when price manipulation was speculated on, but quite often the London silver price fix eliminates most of the manipulation that can take place. This process has been capable to maintain some limits on the manipulation that's feasible with silver , and when the fix cost is set then this cost is placed on the global markets as a correction factor.
Considering that silver has been traded as long as there have been markets and exchanges it's possible to examine historical costs for hundreds of years.This amount and depth of information can help traders determine when market manipulation has been a factor in the past, and aid them distinguish any signs of manipulative behavior or trading efforts in the future as well.
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While the Hunt brothers are not the only people who have tried to corner the market on silver they weren't the only investors to attempt this, they're just the ones who were the most successful in reaching this objective. Additional details could be found at the following internet site Go here(http://silverspotpricehistory.com).