The $4.5 billion gamble that broke the world's richest man

Wealth & Business · Published 18 October 2026 Swipe more like this →

In short: In 1980, the Hunt brothers attempted to corner the global silver market, engineering a shortage so severe it sent prices skyrocketing. But when the bubble burst on a single Thursday, they became the largest debtors in financial history, proving how quickly leverage can turn a fortune into a catastrophe.

The crisis began with Nelson Bunker Hunt and his brother William Herbert. Seeking a hedge against inflation and the devaluation of paper money, the brothers began accumulating silver in the early 1970s. Their position grew exponentially after Muammar al-Qaddafi nationalized their Libyan oil fields in 1973. By 1979, they had engineered a genuine shortage by taking delivery of bullion and air-freighting it to Switzerland. The silver holdings of the Hunts reached $4.5 billion, which constituted roughly 70 percent of global stocks.

The brothers utilized massive leverage to amplify their gains. Roughly 50 percent of their total stake by late 1979 consisted of silver futures instead of tangible bullion. Because futures only required a margin deposit, they were able to control roughly 195 million troy ounces of silver. This strategy saw prices soar from under $10 per ounce in early 1979 to over $50 by January 17, 1980. However, this concentration of wealth drew fierce opposition from industrial users and jewelers, including a public protest by Tiffany & Co., who labeled the hoarding 'unconscionable.'

The collapse arrived on March 27, 1980—Silver Thursday. Triggered by new government oversight and stricter margin requirements, silver prices plummeted to $10.80 in a single day. The Hunts were hit with massive margin calls they could not meet, losing about $1.7 billion instantly. While New York banks provided $1.1 billion in credit to clear some obligations, the brothers were personally bankrupted and later convicted of illegal market cornering. The crash also triggered a secondary wave of bankruptcies among the banks and trading firms that had lent them money.

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