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<p>[QUOTE=&quot;johnmilton, post: 24627125, member: 101855&quot;]I think it hit $55 at one point. </p><p><br /></p><p>The Hunt Brothers showed how a billionaire can find the way to go broke. </p><p><br /></p><p>It&#039;s very simple, realy. You borrow on your silver holdings so that you can buy more silver holdings. </p><p><br /></p><p>Let&#039;s say you buy 1 ounce of silver for $10. If it goes up to $20, you have doubled your money. </p><p><br /></p><p>But let&#039;s say you invest $5 of your own money and borrow the other $5. If the price goes to $20, you have quadrupled your money. GREAT! You have made $15 from your $5 investment. </p><p><br /></p><p>Let&#039;s say you keep borrowing and buying and you get more inventive by getting into the futures market. After a while you control many thousands of ounces of silver. The Hunt Brothers thought they could control the silver market with their great wealth and even more borrowing. If the price goes up, your gains go up exponentially. But if the price goes down, your losses also go up exponentially. You also owe money you don’t have because the silver you used to for collateral to borrow the money is now worth a lot less. Borrowers call their margins, and you are up the creek.</p><p><br /></p><p>Your financial world collapses, and you are a broke ex-billionaire. That’s what happened to the Hunt Brothers.</p><p><br /></p><p>And that’s what happened in October 1929 which get the Great Depression rolling.[/QUOTE]</p><p><br /></p>

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