Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
The behavior of PM prices is confusing
>
Reply to Thread
Message:
<p>[QUOTE="harrync, post: 3203810, member: 58588"]Probably lots of reasons, conscious and sub-conscious, behind the Hunt's thinking, and the one you cite is probably one of the major ones. If I recall the Barron's article correctly, some clergyman had calculated the gold/silver ratio in the bible [something like "so many talents of gold for so many cattle, so many cattle for so many sheep, so many sheep for so many slaves, so many slaves for so many talents of silver." But a bit more complicated than my illustration. He got 5 to 1 - probably pretty accurate for 1000 BC. It was sort of like Bishop Ussher going through all the begets and coming up with 4004 BC as the date of creation.] They figured that as long as the ratio was above 5 to 1, they were safe.</p><p>The Hunt's had bought a silver mine, which exempted them from the trading limits [why a producer gets to have unlimited longs doesn't make sense, but that was the rule.] As I noted before, the squeeze was in good delivery bars, not silver. One certified refiner was on strike, the others started refining only for themselves. [If you could buy silver coin at $30 an oz, refine it into a good delivery bar, and sell it for $40, why do it for other people?] The Hunt's plan was working until the exchange changed the rules on them; no new contracts, liquidate only. The Hunt's overlooked that one of the exchange rules was "We can change the rules."[/QUOTE]</p><p><br /></p>
[QUOTE="harrync, post: 3203810, member: 58588"]Probably lots of reasons, conscious and sub-conscious, behind the Hunt's thinking, and the one you cite is probably one of the major ones. If I recall the Barron's article correctly, some clergyman had calculated the gold/silver ratio in the bible [something like "so many talents of gold for so many cattle, so many cattle for so many sheep, so many sheep for so many slaves, so many slaves for so many talents of silver." But a bit more complicated than my illustration. He got 5 to 1 - probably pretty accurate for 1000 BC. It was sort of like Bishop Ussher going through all the begets and coming up with 4004 BC as the date of creation.] They figured that as long as the ratio was above 5 to 1, they were safe. The Hunt's had bought a silver mine, which exempted them from the trading limits [why a producer gets to have unlimited longs doesn't make sense, but that was the rule.] As I noted before, the squeeze was in good delivery bars, not silver. One certified refiner was on strike, the others started refining only for themselves. [If you could buy silver coin at $30 an oz, refine it into a good delivery bar, and sell it for $40, why do it for other people?] The Hunt's plan was working until the exchange changed the rules on them; no new contracts, liquidate only. The Hunt's overlooked that one of the exchange rules was "We can change the rules."[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
The behavior of PM prices is confusing
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...