In 1980, the Hunt brothers set off a financial earthquake, driving the price of silver from $6 an ounce to a jaw-dropping $50. At their peak, Nelson and William Hunt controlled over a third of the world’s privately owned silver, igniting a frenzy that reverberated throughout the financial world.
Their story began quietly in the early 1970s. With a vast oil fortune behind them, the Hunts grew increasingly concerned about rising inflation and a faltering U.S. dollar. They saw silver as a reliable investment that could safeguard their wealth and potentially yield enormous profits.
What started as cautious buying quickly escalated into a full-scale market takeover. From 1973 to 1979, the brothers amassed an astonishing 100 million ounces of silver. This massive accumulation sparked a rush among other investors, driving silver prices to unprecedented heights. By January 1980, silver had surged to nearly $50 an ounce, and the Hunts stood at the pinnacle of market power.
But their dominance was short-lived. As their influence grew, regulators took notice and introduced new rules and higher margin requirements. The Hunts, now heavily leveraged and unable to meet these new demands, faced a critical situation. On March 27, 1980—Silver Thursday—the market crashed, with silver prices plummeting by over 50% in a single day.
The aftermath was catastrophic. The Hunts were forced to liquidate their massive silver holdings, triggering a market panic that led to billions in losses. Once the kings of silver, the brothers found themselves bankrupt and disgraced, their audacious attempt to control the market ending in dramatic failure.