View Full Version : What happened in the late 70's, early 80's?

Generation Y
5th November 2008, 17:27
I haven't been around the block so long, only twenty years old so even if I could remember the 80's or even the 90's I know I wasn't especially paying as much attention as I am now. So I'm looking for perhaps first hand knowledge of what happened to cause silver to have a yearly average of $21/oz. back then. Seening as until the eighties, silver pretty much stayed the same at less than ten. Perhaps comparisons to what's going on could help? However I do realize the significant differences from that time, as our economy has absorbed tremendous debt since then.

I'm hoping for some additional knowledge as we embark on this "time of change."

5th November 2008, 17:51
Read about the Hunt Brothers trying to corner the silver market (http://www.gold-eagle.com/editorials_04/laborde012704.html) at the link.

I collected coins as a kid and sold the silver during the frenzy. I didn't catch the exact market top, but I sold high enough to pay for my last two years of college.

Today I am still buying it back for less than I sold it 28 years ago. :) :woot:

5th November 2008, 23:22
It Was Wild For A While, Ads In All The Small Town Papers, Peoples Buying Silver In Motel Room, The Price Went Up Everyday.

I Saw A Guy Working A Coal Shovel In A Semi Trailer Filling 5 Gallon
Buckets With Silver Coins....it Was All Over The News....then It Seem One Day It Just All Ended....
Of Coures We Dinna Have The Super-net To Plug Into... And All The Computors Were Still Steam Operated.
Ram Just 5.6k... And A 88 Pound Drum Memory.

No That Was The A6-a Weapons System On The Bomber I Was Trying To Fix On The Flight Deck Of An Aircraft Carrier...about 10 Years Earlier...

Anyway The Price Of Silver And Gold Was Moving Up -- Up- Up -- Real Fast,

I Am Amazed There Is Still Any Silver Left To Buy At These Ph---ckin Give Away Prices....i Mean....silver Is Nearly Free!!!!!!!!!!!!!!!!!!!!!!

6th November 2008, 12:20
In 1974 the US went off the gold standard, overspent on wars and welfare, and printed money like mad. When inflation rose, Nixon dealt with it with wage and price controls. When those controls were finally removed, the pent up inflation just exploded almost overnight. Back then we had lots of labor unions that could drive up wages fast. This unleashed consumer buying power that pushed up prices.

Today, they can print money like mad, but people generally don't benefit from that as they don't get wage increases. Instead, their jobs are sent overseas and wages decline, so they have no spending power to push prices up. Instead, all inflation goes into financial assets.

In 1981 Paul Volker raised interest rate to 20% and gold and silver came crashing down where it stayed for the next twenty years.