Financial Crises · Core
Hunt Brothers Silver 1980
The Hunt brothers’ 1979–80 silver corner drove prices from single digits toward $50 before exchange rule changes and a margin spiral crushed the trade on Silver Thursday.
Definition
Concentrated long futures plus physical accumulation met exchange-imposed ‘liquidation only’ rules and rising margins. The Hunts could not fund the variation. Prices collapsed in March 1980; a bank line stopped a broader mess.
Why it matters
It is the commodity version of a corner meeting a rule change. The exchange is a political actor in a squeeze.
Case
January 1980 peak, 27 March 1980 Silver Thursday. COMEX rule changes were the discrete break, not a new silver mine.
How to read it
Position limits, margin, and whether the venue can change rules mid-squeeze. If yes, your theoretical squeeze P&L is optional.
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