Who Owns the Most Silver in the United States Today?
The American silver trade has developed gradually over the last fifty years. The price of the precious metal and its popularity have fluctuated from highs during silver spikes in mid-January 1980 and late April 2011, to lows following investor and mining company lawsuits. Despite the fluctuation of silver’s value, it has become an increasingly popular investment. A brief look at the silver acquisition record holders over the last few decades shows why.
1. The Hunt Brothers
Between 1973 and 1980, the Hunt Brothers acquired 100 million ounces of physical silver bullion holdings. After making this large and relatively safe investment, however, they took a chance on some riskier trades — including the COMEX silver futures contract exchange. By the end of the decade, the exponential growth of the price of gold and silver caused investors and economists to worry. When the COMEX exchange changed its trading rules and the price of precious metals collapsed, the Hunt Brothers lost billions of dollars. They were bailed out by the Federal Reserve to the tune of one billion dollars — but just later were tried and fined hundreds of millions in court. Despite their controversial legacy, the Hunt Brothers continue to be remembered as among the nation’s record silver holders for their investments in the 1970s.
2. Warren Buffett, Charlie Munger, Berkshire Hathaway
In 1998, Berskhire Hathaway bought 129.7 million ounces of silver under the direction of Charlie Munger and Warren Buffet. At the time, this was a record investment which lasted until Hathaway sold the metal in 2006 in order to establish the underlying silver position of SLV, the most popular silver exchange trade fund in the world. Shortly afterwards, JP Morgan became the sole SLV custodian for the EFT, making them responsible for overseeing all of the physical silver held in SLV.
3. JP Morgan Chase
JP Morgan’s silver success story began during the global recession. In 2008, JP Morgan took over Bear Stearns — a huge trader in silver futures derivatives — after its collapse. Shortly afterwards, JP Morgan began adding large amounts of silver bullion to its coffers, capitalizing on the precious metal’s price gain in 2011. JP Morgan now holds 133.1 million ounces of physical silver and the world record for most silver held under one name. Today, it also owns 50% of the world’s COMEX silver bullion. Their legacy is not altogether a positive one, however. Market analysts have repeatedly called out JP Morgan for alleged fraud and market manipulation.
No matter your take on the debate, one thing is clear. Investment in physical bullion continues to be popular around the world, particularly before pivotal market moments. Many investors and economists regard silver and gold investment as more stable than currency derivatives in the event of economic recession. Given the unpredictable nature of the current economy and the signs of an economic downturn looming, there’s never been a better moment to consider diversifying your portfolio through precious metal investments.
The Metals.com Staff
