Why did Silver prices spike in the 70's?
Question:
Answer:
The Hunt brothers "played" (manipulated) the market. They failed. Went to jail and lost their money.
There is no comparison on the 1970's spike and today, other than many people that know little about investing are in the metals and doing so because it seems like a "good bet".
When your friends and neighbors are talking about their investments in Gold and Silver.. It's a good time to get out. (remember the "dot com" craze in stocks?)
Having said that. I'm long on Silver. But I know very well I could lose 50% or more in a day! Metals make up a very small amount of my asset allocation. I hate losing money. but if I do. it will not "kill me".
I've got a stop loss in place. I'm going to turn it into a "trailing loss" soon. But even with that... the plain truth is... I could lose a lot.
Good luck!
The Hunt family tried to corner the silver market. while diversfying their portfolio from other commodities. At the time, it was illegal for US citizens to own gold.
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