The Panic of 1825 was the British speculative boom and crash centered on a surge in Latin American investments.
After the Napoleonic Wars, investors became enthusiastic about newly independent Latin American states and speculative companies. British money flowed into bonds, mining ventures, and other projects whose prospects were often poorly understood or exaggerated.
The boom collapsed in late 1825. The failure of banking and investment firms spread fear through London’s financial system, causing bank runs and a serious contraction in credit. The crisis also affected markets beyond Britain.
The panic is an important early example of an international financial crisis linked to speculative securities. It is sometimes confused with later British panics, such as those of 1837 and 1847, but the Latin American investment boom specifically belongs to the Panic of 1825.