Historic Silver Price Surge and Collapse: The 1980 Market Shock
The year 1980 marked one of the most dramatic episodes in the history of the precious metals market. The price of silver skyrocketed by more than 700% in just one year, rising from about $6 per troy ounce in early 1979 to an intraday record high of $50.36 per ounce on January 18, 1980.
This unprecedented surge was largely driven by the Hunt brothers, wealthy American oil tycoons, who attempted to corner the global silver market by purchasing vast quantities of physical silver and silver futures. At their peak, the Hunts controlled nearly one-third of the world’s non-government silver supply.
However, the boom quickly turned into a bust. The Commodity Exchange (COMEX) introduced new regulations that restricted margin buying, triggering a wave of forced liquidations. On “Silver Thursday” (March 27, 1980), silver prices collapsed to $10.80 per ounce, an almost 80% drop from the peak. Prices eventually fell back to around $4 per ounce, representing a staggering 90% decline overall.
The 1980 silver crisis remains a powerful lesson in market speculation and manipulation. It highlights how regulatory intervention and excessive leverage can rapidly reverse fortunes in commodity markets. Even decades later, this event serves as a cautionary tale for investors about the risks of speculative bubbles and the importance of market discipline.
