ABSTRACT
The relatively rapid rise and fall of silver prices and the outcry from Silver Thursday and its consequences prompted investigations by a number of federal agencies as well as numerous hearings in 1980 in both the House of Representatives and the Senate. By holding contracts for delivery of silver, the large buyers would be in control of a market where prices would have to increase. The government's role in affecting silver prices has changed substantially from actual government price controls to a free market. Silver content is important in the sterlingware industry, where it can represent over 50 percent of the final product cost. The concept of futures markets has spread from agricultural commodities to minerals, metals, and financial instruments such as US Treasury bills. The variables that are significant include the lagged price of silver, prime rate, money supply, the dummy variable representing the period when the exchange took various actions, silver deficit, and silver inventory.
