Silver Thursday

Silver Thursday refers to the sharp collapse in the United States silver and silver futures markets on Thursday, March 27, 1980. The crisis followed a rapid rise in silver prices and the accumulation of a large long position by members of the Hunt family, principally Nelson Bunker Hunt and William Herbert Hunt, with Lamar Hunt involved to a lesser extent. The term is used both for the trading day itself and for the broader 1979–1980 silver crisis. By the end of 1979, Bunker Hunt, Herbert Hunt and the Hunt-related International Metals Investment Company controlled approximately 195 million troy ounces of silver. Silver, which had traded below $10 per troy ounce before August 1979, rose to $34.45 by December 31 and to more than $50 in January 1980. The price decline accelerated amid exchange actions that included stricter margin requirements, position limits and liquidation-only trading rules. As prices fell, the Hunts could not meet all demands for additional cash and collateral. On March 27, 1980, silver closed at $10.80 per ounce, Hunt-related positions were liquidated, and major brokers and lenders faced potential losses.