This is the first part of a two-part series examining some of the greatest silver stackers of all time. We will begin by reviewing three previous owners and buyers of silver ingots who, on several occasions, at that time acquired and controlled the largest number of silver ingots in the world. In the last major bull market for silver and gold (1971-1980), three sons of a wealthy oil magnate (Nelson, William and Lamar Hunt, 26%) accumulated a physical silver treasure of about 100 million ounces. It is alleged that the Hunt brothers tried to take over the silver market.
An analysis of the inventories of silver above ground carried out in 1980 shows that they were not very close. Tiffany & Co. While the consequences of the Hunt Brother rescue debacle were known, Tiffany & Co. They even paid for ads in the New York Times to publicly embarrass the silver-betting brothers (of course, without explicitly naming them) for their alleged conspiracy to manipulate silver market prices.
Many market experts suggest that the Hunt brothers were the scapegoats for counterproductive government policies, such as weapons and butter, Nixon's definitive closing of the golden window, which ended the last vestiges of the Bretton Woods Agreement, and the years of high price inflation in the 1970s. Regardless of the influence of price dynamics, the Hunt brothers were serious silver bettors who foolishly bet on COMEX and therefore lost when the rules of the game were changed to allow only liquidation orders. . More than 30 years ago, Warren Buffett, CEO of Berkshire Hathaway, made his first purchase of silver in anticipation of the demonetization of the metal by the U.S.
UU. Since then, he has followed the fundamentals of silver, but no entity he directs has owned it. In recent years, widely published reports have shown that ingot inventories have declined significantly, due to excessive user demand in relation to mine production and recovery. Munger, vice-president of Berkshire, concluded that the balance between supply and demand was only likely to be established by a slightly higher price.
All the metal was purchased for delivery in London through a single brokerage firm. Berkshire hasn't had and has no options. No purchase has been made that has set new highs for the metal and all purchases have been made after declines. Berkshire had no knowledge of the stocks or positions of any other market participant and today has no such knowledge.
Berkshire has no current plans to buy or sell silver. The cost position comprises less than 2% of the company's investment portfolio. The timing has led many silver experts to speculate that SLV fund managers acquired the Trust's initial silver from Berkshire Hathaway and its CEO, Warren Buffett. The silver-traded fund, now the most popular in the world, tries to imitate the fluctuation of the spot price of silver in US dollars.
The first famous pile of silver accumulated just before its entry into World War II. At one point in time, the United States government had amassed a silver treasure of 3,334 million troy ounces. This 1942 silver treasure peaked just as the United States was building an arsenal for World War II, followed by the Korean and Vietnam wars. From 1964 to 1976, the United States completely withdrew silver in circulation from its coins in circulation.
The United States government has not actually stockpiled silver, except perhaps for undisclosed military use or for the U.S. currency program Silver Eagle Coin. For the past few days, I have delved deeper into the history of Warren Buffett (Trades, Portfolio) with investing in commodities. I have explored their recent purchase of a gold miner and their foray into the oil futures market in the 1990s.
But perhaps the best-known (and different from Buffett) commodity trading carried out by the Oracle of Omaha was his big silver bet. Despite his frequent claims that he avoids precious metals because they don't pay dividends, Buffett held an important position in the silver industry in the mid-1990s. .