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On Thursday, March 27, 1980, one of the most dramatic and consequential events in the history of commodity markets unfolded in the U.S. — a day forever etched in financial lore as “Silver Thursday.” This was not just a routine dip in prices but a cataclysmic crash that wiped out huge speculative positions, triggered market panic, and reshaped how precious metals trading would be regulated going forward. �
Wikipedia
1. The Build-Up — A Speculative Mania
In the late 1970s, global markets were roiled by high inflation, chronic dollar weakness, and widespread distrust of paper currencies. Into this chaotic environment stepped three Texas oil billionaires — Nelson Bunker Hunt, William Herbert Hunt, and Lamar Hunt, collectively known as the Hunt brothers — who began aggressively buying silver as a hedge against inflation and currency debasement. �
Wikipedia
By late 1979, the Hunts had amassed well over 100 million troy ounces of silver, using both physical bars and large futures positions. Their buying frenzy helped push silver prices from around $6 per ounce in early 1979 to nearly $50 per ounce by January 1980 — a more than 700% increase in about a year. �
Wikipedia
2. What Was Silver Thursday?
Despite the astonishing run-up in prices, market conditions soon changed. Exchanges like the COMEX and the Chicago Board of Trade (CBOT), concerned about excessive speculation and systemic risk, raised margin requirements and restricted highly leveraged trading in silver futures. �
Bullion Exchanges
On March 27, 1980 — a Thursday — the fragile structure collapsed:
Silver futures plunged from around $50 to roughly $10.80 per ounce in a matter of hours.
The sudden drop wiped out speculative positions and forced frantic selling.
Brokers issued margin calls the Hunt brothers could not meet. �
Wikipedia
This collapse wasn’t just a big price drop — it was a freefall that erased more than half the metal’s value in a single day and sent shockwaves through financial markets. �
Bullion Exchanges
3. Why It Happened — Anatomy of the Crash
Several key factors converged to trigger the Silver Thursday crash:
🟠 Speculation & Cornering
The Hunts had tried to corner the market — buying so much silver that they controlled a dominant share of available supply. While this drove prices to historic highs, it also created a bubble dependent on ever-rising prices. �
Wikipedia
🟡 Tightened Trading Conditions
In response to spiraling prices and risk, exchanges sharply increased margin requirements. This made leveraged positions far more expensive and difficult to maintain. �
Bullion Exchanges
🔴 Margin Calls & Forced Liquidations
When prices began to decline, brokers demanded more collateral from the Hunts to cover losses. Unable to meet these calls, the brothers were forced to liquidate part of their holdings — which accelerated the price collapse. �
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4. Aftermath — Losses, Bailouts, and Regulation
The fallout from Silver Thursday was significant:
The Hunt brothers lost over $1.7 billion — one of the largest losses in modern financial history. �
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A consortium of U.S. banks extended a rescue loan that helped stabilize key brokerages, but the market trauma persisted. �
Wikipedia
Even years later, the brothers faced legal and regulatory consequences, including charges related to market manipulation and eventual bankruptcy. �
Wikipedia
Perhaps most importantly, the crash prompted richer oversight and stricter rules on commodity futures — especially around margin requirements and position limits — to prevent similar systemic risks in the future.
5. Legacy — Lessons for Markets and Traders
The Silver Thursday crash remains a powerful lesson in finance:
📌 Speculation Can Become Self-Destructive
When investors dominate a market without regard for fundamentals, prices can disconnect from reality — and these bubbles must eventually correct.
📌 Leverage Amplifies Risk
Borrowed money can magnify gains — but also losses. When markets turn, leveraged positions can cascade into forced selling.
📌 Regulatory Safeguards Matter
Margin requirements, position limits, and exchange rules exist to protect systemic integrity. Silver Thursday showed what can happen when those safeguards are violated or outpaced by rapid growth.
📌 History Often Repeats (With Variation)
Modern markets still face episodes of sharp corrections and volatile swings. While technology and trading structures have evolved, the underlying psychology — fear, greed, and herd behavior — remains much the same.
6. Why Silver Thursday Still Matters Today
While the term "crash" is often used loosely, the original Silver Thursday (March 27, 1980) was a bona-fide market collapse — driven by speculative excess, regulatory tightening, and systemic stress — and it left an indelible mark on commodity trading history. �
Wikipedia
Today’s investors and traders still study Silver Thursday as a cautionary tale about the power of leverage, the risks of cornering markets, and the essential role of prudent regulation.
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Gold and Silver continued their sharp decline on Monday, which was an extension of last week's violent reversal. The reason for this decline is a strong U.S. dollar, higher trading margins, and profit-taking, which drained the momentum of the rally that had pushed both metals to fresh record levels.

Spot Gold saw a low of $4,402 in early trading, then recovered slightly and closed at $4,687.52 (-3.7%). On Friday, it had fallen nearly 10% and dropped below $5,000.

Silver was also under heavy selling pressure, after a 30% collapse last week, at one point falling more than 12% and then stabilizing near $79.2 per ounce.