Wednesday, September 10, 2008

More (THOUGHTS!) on the Hunt Brothers

I am reading ANOTHER (THOUGHTS!) and FOA's Gold Trail series for the second time right now. It is like a book as I printed it all out. Here is what "the book" looks like on my nightstand:

As I read it all for the second time I am picking up lots of things that I missed on the first reading. As you can probably tell from what I've written about Another, his writings are somewhat cryptic. But there is also a ring of truth in what he says, which is why I value it so highly.

It has also aged more (like fine wine) than what is being written today. The definition of wisdom is knowledge, insight or truth that stands the test of time. In his writings I sense such wisdom, and I am looking for current signs that show that what he said 10 years ago is standing the test of time.

I am not alone in keeping ANOTHER (THOUGHTS!) alive in my thoughts as I watch today's gold market. Here is a post from today which references him in regards to current Central Bank and government actions, like the nationalization of Freddie and Fannie.

I am still going to post my thoughts regarding the lessons we should take from the Hunt Brother's story. But I am still forming my thoughts on those lessons as I reread ANOTHER and as I read other current writings.

For example, here is a link to Ted Butler's latest article on the current manipulation. In it he says,
Let me state that clearly - one (maybe two) U.S. bank holds a net 36% share of the entire COMEX silver market. The same one or two U.S. banks hold 82% of the total commercial net short position. This is a concentration that is unprecedented; maybe double or triple or more what the Hunt Brothers held on the
long side in 1980
. Without these, one or two traders, there would hardly be any commercial silver short position at all. This makes the big concentrated short a danger to everyone, including the market itself. That’s why the regulators must act now.

This is important. If you remember from the story of the Hunt Brothers, the big Wall Street banks held the short side of the Hunt's long on silver. And just when they were about to lose their shirts, the exchanges helped them out and changed the rules which killed the Hunt's position. The Hunt's weakness was that they had bought on margin. And if you notice right now, it is the "margin investors" that are getting killed, forced out of their positions at huge losses.

But as I said, that is the most obvious lesson. I still think there are deeper lessons. For one thing, if the Hunt's had had the advantage of reading ANOTHER (THOUGHTS!), they would have probably switched from silver to gold in 1974. They would have focused on taking possession of physical gold only. And you can't very easily do that on margin.

Anyway, I will get back to this subject soon. But for now, please watch this video interview with Bill Murphy the founder of GATA. I think the video is about a year old, but it is still very good. Bill started GATA along with Chris Powell back around the time that ANOTHER was writing. And as I mentioned before, Bill and ANOTHER had different approaches to what they both saw happening. But that doesn't really matter as my goal is to uncover the elusive truth of what is really happening, and what is coming our way. The media and the government are trying to paint and spin the truth and the future. So digging out the truth in this day and age can be a difficult task.

Here's the video:



FOFOA said...

I wanted to add a couple more interesting links from today. In this first one, James West of the Midas Letter asks and answers the question "Can Gold Be Suppressed Indefinitely?"

And in this one, Donald Coxe, a mainstreamer and the chairman of a big investment firm in Chicago talks about the manipulation. The point here is more of WHO is saying this. He's not one of the usual suspects when it comes to manipulation conspiracy talk.

jerry said...

I want to thank you for the Youtube link talking about gold with Bill Murphy. I watched all 3 and found them extremely interesting.

Dave said...

I'm glad they touched on central bank gold leasing, but they did what everybody does and glossed over a very significant consequence of this leasing activity: double counting of gold. When the central banks lease out their gold, they keep it on their books, but that gold also appears on the market. So leasing artificially doubles the amount of gold in existence, which would seem to reduce its value. That looks like a clever, covert way to suppress the price.

FOFOA said...

The COMEX changed margin rules today. Sound familiar? That's how they crushed the Hunt Brothers.

Martijn said...

Is that you in the picture on the nightstand?


FOFOA said...

Hahaha... why yes, Mr. Holmes, it is!

Martijn said...

Just curious, alwyas interesting to see a face with a name.
Hope the blurryness is not from the skateboarding accident.


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