The event in 1980 that drove silver prices to soar near $36 per ounce (and ultimately peak above $49) was the Hunt Brothers’ attempt to corner the silver market.
Hunt Brothers’ Strategy
Nelson Bunker Hunt, William Herbert Hunt, and their associates accumulated massive physical silver holdings—over 200 million ounces, about one-third of the global deliverable supply—through futures contracts and borrowing. This buying frenzy, fueled by inflation fears amid high U.S. interest rates and geopolitical tensions like the Iranian Revolution, pushed prices from $6 in 1979 to $36 by early January 1980.
Market Peak and Crash
Silver hit an intraday high of around $50 on January 18, 1980, before regulators intervened with COMEX “Silver Rule 7,” limiting leverage and margin trading. Unable to meet margin calls, the Hunts faced “Silver Thursday” on March 27, 1980, when prices plummeted over 50% in days to about $11.
