The 1980 U.S. silver-market collapse after the Hunt brothers’ speculation unraveled was called Silver Thursday.
Nelson Bunker Hunt and William Herbert Hunt accumulated large amounts of silver and silver futures during the 1970s. Their purchases, along with other demand and inflation fears, helped drive silver prices dramatically higher. The brothers were accused of attempting to corner the market, although their strategy ultimately depended heavily on borrowed money.
In January 1980, exchange rules changed to restrict new purchases of silver futures. Prices then fell sharply. On March 27, 1980, known as Silver Thursday, lenders demanded additional collateral, and the Hunts faced a liquidity crisis. A group of banks arranged financing to help prevent a disorderly collapse.
Silver Thursday was primarily a commodities-market event rather than a conventional stock-market crash. It is often confused with Black Monday and other named equity crashes. The episode nevertheless affected financial markets because the Hunts’ debts and forced liquidation threatened brokers and banks.