For greater than 40 years, the mainstream narrative has gone unchallenged:
“Silver hit $50 as a result of the Hunt brothers cornered the market.”
It’s a easy story — nearly too easy.
In Mike Maloney’s newest deep-dive, he exhibits why this model doesn’t maintain up below scrutiny. The analysis, the interviews, the historic information… all of them level to one thing much more advanced — and much more revealing — about how markets truly work, and the way governments react when gold and silver start transferring too rapidly.
Under is a abstract of probably the most eye-opening insights from the video.
Wall Road Nonetheless Will get the Story Improper
Mike begins by calling out a latest chart from a Goldman Sachs analyst labeling the 1980 silver spike as the results of the Hunts “cornering the market.”
The issue? That’s not what the proof says.
Mike’s crew went via a foot-tall stack of books on the topic — together with the definitive account Manipulation on Trial. The conclusion?
No proof the Hunts cornered the market No proof they manipulated costs Most significantly: the info contradicts the narrative
Even Jeff Christian of CPM Group, probably the most extensively cited specialists in valuable metals, instructed Mike that the Hunts may need contributed 50 to 75 cents to the silver value — not $50.
So, what truly moved silver?
The Actual Driver: The Public, Not the Hunts
The historic report makes one factor clear: The actual drive behind the silver spike was abnormal buyers altering their choice from gold to silver.
This half is nearly by no means mentioned in mainstream retellings — but it explains the magnitude of the transfer much better than the Hunt concept ever did.
As inflation surged and belief within the greenback collapsed, buyers worldwide started scrambling for alternate options. Silver, being far cheaper than gold and much simpler to build up rapidly, turned the go-to refuge.
When the general public stampedes, markets reply accordingly. However then one thing far stranger occurred…
Sudden Rule Modifications: Margin Hikes, Place Limits, and… “Promote-Solely”?
On the identical second the silver market was overheating, the Commodities Futures Buying and selling Fee (CFTC) — with lively involvement from Federal Reserve Chairman Paul Volcker — applied a sequence of extraordinary rule adjustments:
Huge margin will increase And probably the most surprising: a “liquidation solely” order
That remaining rule meant you can promote silver… however you have been not permitted to purchase.
Mike factors out the plain: A rule like that ensures costs should fall — and fall exhausting — till the order is lifted.
Why would the Fed Chair be concerned in choices about futures market guidelines?
Mike’s concept: to save lots of the U.S. greenback.
Was Silver a Scapegoat for a Gold Downside?
Mike shares a compelling speculation — not a definitive declare, however one supported by the timeline:
In early 1980, gold was in a runaway The greenback was weakening quick Valuable metals demand was exploding worldwide Solely ~10% of the worldwide inhabitants may legally purchase gold on open markets
In that setting, stopping gold meant sending a message. And the silver market was the right stage:
Extremely concentrated in positions held by the Hunts Proper subsequent door to the gold pit on the buying and selling ground
If regulators crushed silver — publicly and dramatically — what would gold merchants assume?
Mike recounts tales from the buying and selling ground: silver merchants getting back from the restroom telling gold merchants, “If they’ll do that to silver, we’re subsequent.”
And on January 21, 1980, each gold and silver peaked on the very same day.
The Greenback Disaster Nearly No One Talks About
Mike emphasizes a degree most historians skip… The U.S. got here dangerously near dropping management of the greenback in January 1980.
Demand for gold was hovering in North America and Western Europe — the one locations the place buying and selling was authorized and liquid on the time. Since then, the variety of individuals with entry to gold markets has grown 18×, amplifying any future runaway circumstances.
What occurred in 1980 wasn’t only a metals story. It was a financial story — one with echoes that attain instantly into right this moment’s inflation, debt, and forex issues.
Closing Ideas: The Delusion Was Handy
The “Hunt brothers cornered silver” story is simple to repeat, simple to show, and straightforward guilty.
However the actual forces at work have been:
Regulatory intervention A gold market transferring too quick for consolation
And a authorities that couldn’t afford to let valuable metals sign simply how fragile the system had develop into.
When you see the fuller image, the outdated narrative not is smart.
Watch Mike’s Full Breakdown
This text solely scratches the floor of what Mike uncovers. To know the actual dynamics behind probably the most misunderstood moments in market historical past, watch the complete video right here:
The Hunt Brothers Silver Story Is Not What It Appears — Full Video
Individuals Additionally Ask
Did the Hunt brothers actually nook the silver market in 1980?
Most proof exhibits they did not nook the silver market. Analysis and skilled interviews point out their affect on the silver value was small—possibly 50–75 cents—in comparison with the huge public demand on the time. Mike Maloney breaks down the actual components behind the spike in his full video on GoldSilver’s YouTube channel.
What truly triggered silver to hit $50 an oz in 1980?
The silver spike was largely pushed by international buyers shifting from gold into silver as inflation surged and confidence within the greenback fell. Regulatory adjustments and market panic amplified the transfer. Watch Mike Maloney’s full clarification for a data-backed breakdown of what actually occurred.
Why did regulators impose “liquidation solely” guidelines on silver?
The CFTC, with involvement from Federal Reserve Chairman Paul Volcker, applied “sell-only” guidelines to drive the market downward throughout a interval of utmost volatility. This assured falling costs and helped cool off each the silver and gold markets.
How have been the Hunt brothers used as scapegoats for the gold market?
Mike Maloney suggests the Hunts might have been a handy instance to discourage runaway demand in gold. Silver was a smaller, simpler market to affect, and suppressing it despatched a message to gold merchants subsequent door on the alternate ground. You’ll be able to be taught extra about this concept in Mike’s full video breakdown of the occasion.
Why did gold and silver peak on the identical day in 1980?
Each metals peaked on January 21, 1980, shortly after new buying and selling restrictions hit the silver market. Merchants feared related intervention in gold, triggering simultaneous sell-offs. Mike Maloney explores the timing, motives, and market psychology behind this uncommon occasion in his newest video.
