It began with a simple, if arrogant, premise: a single family, armed with a colossal oil fortune, believed they could seize control of the world's silver supply.
The Hunt brothers' ambition ignited a speculative frenzy that sent silver prices vertically—up more than 700% in a single year. But markets fueled by manipulation have a nasty habit of correcting. On March 27, 1980, the bottom fell out.
The Squeeze
By late 1979, the Hunts controlled roughly half the world's deliverable silver supply.
- Accumulation: 100-200 million ounces.
- Peak Price: $49.45/oz (Jan 1980).
- Impact: Panic melting of heirlooms and jewelry.
The Crash
Regulators intervened, banning new buy orders. The price collapsed.
- Silver Rule 7: COMEX restricted margin buying.
- Margin Call: The Hunts failed to meet a $100M call.
- Result: 50% price drop in one day ($21.62 to $10.80).
Why This Matters Now
The Hunt brothers are gone, but the structural reality of the silver market remains. It is a smaller, thinner market than gold, making it inherently susceptible to volatility.
Speculation vs. Preservation
Silver offers high returns during manias but carries the risk of catastrophic drawdowns. Gold functions as a monetary anchor—a store of wealth held by central banks to preserve capital, not to gamble with it.
Choose Stability
For investors seeking to secure retirement savings without the sleepless nights associated with "Hunt-style" volatility, a Gold IRA remains the prudent choice.