Price manipulation has been a big deal in the silver market for a long time.
This goes back to the late 1970s and early 1980s when the Hunt brothers supposedly bought a massive amount of silver about 35 million ounces worth over US$1 billion.
They went all-in buying physical silver and silver futures and even took delivery on the futures contracts instead of settling for cash.
As the Hunt brothers were busy accumulating silver, the price of silver bullion soared from $11 an ounce in September 1979 to a whopping $49.45 per ounce by January 1980.
But the party didn't last long.
On a fateful day in March 1980, the brothers missed a margin call, and the silver price came crashing back down to $11.
It's still up for debate whether the Hunt brothers were manipulating the market or if they were just playing a dangerous game themselves, but their impact on the market has never been forgotten.
Fast-forward to 2021 when the silver market manipulation discussion was reignited thanks to social media.
Inspired by Reddit's WallStreetBets and using the hashtag #SilverSqueeze, traders banded together and started buying physical silver and silver ETFs. Their goal was to squeeze the big banks that had significant short positions in silver.
And guess what? Silver prices shot up to an eight-year high, with an impressive 11% gain in just one day.
Of course, not everyone was on board with this silver-buying frenzy. Most analysts thought it was impractical or downright risky. But the die-hard silver bugs, who have long accused big banks and governments of manipulating silver, loved every moment of it.
The silver market is no stranger to these conflicting views, and it's an ongoing saga.
So what's the big idea behind silver manipulation?