“Silver Thursday” market crash in 1980
E680896
The “Silver Thursday” market crash in 1980 was a dramatic collapse in silver prices triggered by the failed attempt of the Hunt brothers to corner the silver market, causing widespread financial turmoil.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| Silver Thursday | 0 |
Statements (48)
| Predicate | Object |
|---|---|
| instanceOf |
financial market crash
ⓘ
historical event ⓘ |
| affectedAsset |
physical silver
ⓘ
silver futures ⓘ |
| affectedAssetClass | precious metals ⓘ |
| alsoKnownAs | 1980 silver market crash ⓘ |
| currencyOfQuotations | U.S. dollar NERFINISHED ⓘ |
| followedBy | prolonged bear market in silver ⓘ |
| hasCause |
exchange-imposed position limits on silver
ⓘ
increased margin requirements on silver contracts ⓘ margin calls on silver futures positions ⓘ sharp decline in silver prices ⓘ |
| hasDate | 1980-03-27 ⓘ |
| hasDayOfWeek | Thursday ⓘ |
| hasEffect |
collapse of silver prices
ⓘ
concerns about systemic risk in U.S. financial markets ⓘ emergency credit arrangements organized by banks ⓘ financial stress for several brokerage firms ⓘ liquidity crisis for the Hunt brothers ⓘ regulatory scrutiny of commodity speculation ⓘ |
| hasMonth | March ⓘ |
| hasYear | 1980 ⓘ |
| involvesOrganization |
Bache Halsey Stuart Shields
NERFINISHED
ⓘ
Chicago Board of Trade NERFINISHED ⓘ Federal Reserve System NERFINISHED ⓘ New York Commodity Exchange NERFINISHED ⓘ U.S. banks and brokerage firms ⓘ |
| locationOfKeyExchange |
Chicago
NERFINISHED
ⓘ
New York City NERFINISHED ⓘ |
| mainActor |
Lamar Hunt
NERFINISHED
ⓘ
Nelson Bunker Hunt NERFINISHED ⓘ William Herbert Hunt NERFINISHED ⓘ |
| partOf | history of commodity market crises ⓘ |
| precededBy | rapid rise in silver prices in 1979 ⓘ |
| priceLevelAfterCrashApprox | around 10 U.S. dollars per troy ounce ⓘ |
| pricePeakApprox | around 50 U.S. dollars per troy ounce in January 1980 ⓘ |
| regulatoryResponse |
greater oversight of large speculative positions
ⓘ
tighter position limits in commodity markets ⓘ |
| relatedToEvent |
late-1970s silver price boom
ⓘ
subsequent lawsuits against the Hunt brothers ⓘ |
| significance |
highlighted systemic risk from concentrated market positions
ⓘ
illustrated risks of leveraged speculation in commodities ⓘ |
| timePeriodContext |
late 1970s and early 1980s inflationary environment
ⓘ
period of high interest rates in the United States ⓘ |
| tookPlaceInCountry | United States NERFINISHED ⓘ |
| tookPlaceInMarket | silver market ⓘ |
| triggeredBy |
Hunt brothers silver speculation
ⓘ
attempt to corner the silver market ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.