Description

The Hunt Brothers, Nelson Bunker Hunt and William Herbert Hunt, were wealthy oil heirs and commodities traders from Texas who are famously associated with an audacious attempt to corner the silver market in the late 1970s and early 1980s. Their actions culminated in a financial debacle known as “Silver Thursday” on March 27, 1980. Here’s an overview:

Background

1. Motivation for Silver Investment:
   • In the 1970s, the Hunts became concerned about inflation and the potential collapse of the U.S. dollar. They saw silver as a hedge against economic instability.
   • They began purchasing large amounts of silver, both in physical bullion and futures contracts.
2. Scale of Buying:
   • By the late 1970s, the Hunts, along with a group of Saudi investors, had acquired more than 200 million ounces of silver. At one point, they controlled about one-third of the world’s accessible supply (excluding government stockpiles).
3. Impact on Silver Prices:
   • Silver prices skyrocketed, rising from around $6 per ounce in early 1979 to a peak of $49.45 per ounce in January 1980. This was an extraordinary increase, driven in large part by the Hunts’ purchases and the market speculation they spurred.

The Crash and Silver Thursday

1. Market Intervention:
   • The Commodity Futures Trading Commission (CFTC) and major exchanges grew concerned about the Hunts’ market influence. In early 1980, the COMEX (Commodity Exchange, Inc.) and CBOT (Chicago Board of Trade) introduced rules that limited the size of futures positions and required higher margin requirements.
   • These rules, combined with fears of a bubble, led to a sharp decline in silver prices.
2. Collapse:
   • By late March 1980, silver prices had plummeted to below $11 per ounce.
   • On March 27, 1980—Silver Thursday—the market chaos reached a peak as the Hunts faced margin calls (demands for more collateral) that they could not meet. This triggered widespread panic in the silver and broader financial markets.

Aftermath

1. Hunt Brothers’ Bankruptcy:
   • The Hunts were forced to liquidate assets and eventually filed for bankruptcy in 1988.
   • They were accused of manipulating the market and were fined by the CFTC. In 1989, they were found guilty of civil charges of conspiracy to corner the market.
2. Broader Impact:
   • The silver market collapse caused significant financial losses for many investors.
   • It also led to tighter regulations in commodity markets to prevent similar market manipulations in the future.
3. Legacy:
   • The Hunts’ attempt to corner the silver market remains a cautionary tale of speculative excess and the dangers of market manipulation.

Their story is a fascinating blend of ambition, greed, and hubris, illustrating the potential consequences of unchecked speculation in financial markets.

• Contains 1 oz. Troy of .999 Fine Silver
• Obverse: Portrait of the Hunt Brothers with the words “THE HUNT BROTHERS” around the outer/upper circumference.
• Reverse: A silver bar pattern embossed with “SILVER THURSDAY” at the top left, the Intaglio Mint logo top right; a graph depicting the rise and fall of silver prices from 1970 to 1984; hallmark lower left, and “SILVER RULE 7,” the rule that was enacted by COMEX to prevent future attempts of cornering the market.