For some, it might feel like 1980 again – that's the year that the Hunt Brothers, in an attempt to corner the silver market, drove the price all the way to $50 per troy ounce before being forced to unwind massive derivatives positions. Their inability to meet margin calls helped blow up the silver market and sent it crashing to record lows.
Bart Chilton, one of the five commissioners of the Commodity Futures Trading Commission, said in a statement today that some individuals or organizations had repeatedly attempted to control and manipulate the price of silver.
"There have been fraudulent efforts to persuade and deviously control that price," said Chilton. "Any such violation of the law in this regard should be prosecuted."
There is a long-standing allegation that a few major banks have conspired to hold down the price of silver with the aid of massive short positions. Chilton said that he was unable to give any names or specifics, because the law prevents him from doing so.
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