Maury Kravitz – The Visionary Trader Who Crushed The Gold Market

Maury Kravitz was Born in Philadelphia in 1932, Kravitz moved to Chicago at the age of eight, where he would eventually become a legendary figure in the city’s financial markets.

His journey from a young lawyer to one of the most successful gold traders in the history of the Chicago Mercantile Exchange (CME) is a testament to his ability to see opportunities where others saw only obstacles.

Background and Early Career

Kravitz’s early life was marked by intellectual curiosity, thanks in large part to his father, a classical scholar with a voracious appetite for learning. Growing up in a household where books and knowledge were revered, Kravitz developed a sharp mind and a deep appreciation for history and strategy.

However, unlike his father, who lived a life of intellectual pursuit with little regard for financial stability, Kravitz was determined to carve out a different path—one that balanced intellectual rigor with financial success.

After practicing law for seven or eight years, Kravitz made a bold decision to leave the legal profession entirely. In the late 1960s, he joined the Chicago Mercantile Exchange, where he began trading pork bellies. While this might seem like an unlikely starting point for a future gold trading legend, it was here that Kravitz honed his skills in the fast-paced, high-stakes world of commodities trading.

A Masterstroke of Anticipation

Kravitz’s most significant trading success came in the gold market, a sector that was virtually non-existent in the United States during the early 1970s. At the time, gold ownership was illegal for U.S. citizens due to the Gold Reserve Act of 1933-34. However, Kravitz had a vision. He anticipated that gold would eventually be re-legalized, and he positioned himself to capitalize on this seismic shift in the market.

In 1970, Kravitz began a relentless campaign to establish himself as the go-to gold broker for major security firms in New York. He traveled extensively, meeting with firms and pitching his vision of a future gold market. His pitch was simple yet powerful: “There is no gold market now, but there will be. And when it comes, I want you to remember who came knocking on your door first.”

Kravitz’s foresight paid off in spades. On January 1, 1975, the U.S. government lifted the ban on gold ownership, and the CME launched its gold futures contract. Kravitz was ready. He had already secured commitments from numerous firms, and when the market opened, he controlled an astonishing 95% of the business. His early positioning allowed him to dominate the gold market during its initial years, as prices soared from $99.95 an ounce in 1975 to over $800 an ounce by 1980.

Maury Kravitz’s Trading Strategy

Kravitz’s trading strategy was built on two key pillars: vision and relationships. He had an uncanny ability to anticipate market shifts long before they occurred, and he was willing to take calculated risks based on his convictions. His early move into gold trading was a prime example of this. While others were content to trade in established markets, Kravitz saw the potential in a market that didn’t yet exist.

Equally important was his ability to build and maintain relationships. Kravitz understood that trading is as much about people as it is about numbers. His years of cultivating relationships with security firms in New York paid off handsomely when the gold market finally opened. These firms remembered Kravitz as the man who had believed in the market before it existed, and they honored their commitments to him.

His Trading Philosophy

Kravitz’s trading philosophy can be summed up in one word: opportunity. He believed in identifying undervalued or overlooked markets and positioning himself to take advantage of them before others caught on.

This philosophy was evident not only in his gold trading but also in his later move into the S&P 500 futures market in the early 1980s. Just as he had done with gold, Kravitz recognized the potential of the S&P 500 futures contract early on and built a successful business around it.

Kravitz also understood the importance of knowing when to exit a market. By the late 1980s, he had begun to scale back his trading activities, eventually leaving the floor entirely in 1992. He transitioned into managing his own order-filling company, International Futures and Options Associates, which became one of the largest floor execution firms in the U.S.

Kravitz Was A Trader Ahead of His Time

Maury Kravitz’s career is a testament to the power of vision, relationships, and strategic positioning. His ability to anticipate market shifts and act decisively set him apart from his peers. Whether it was gold in the 1970s or the S&P 500 in the 1980s, Kravitz had a knack for being in the right place at the right time.

But perhaps his greatest legacy is his willingness to take risks on markets that others ignored. In a world where most traders follow the herd, Kravitz was a pioneer, always looking for the next big opportunity. His story serves as a reminder that in the world of trading, success often comes to those who are willing to see the future before it arrives.

As Kravitz himself put it, “You have to say goodbye. You don’t want to stay in the saddle until the horse finally drags you down.”

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