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<p>[QUOTE="WingedLiberty, post: 1011016, member: 26030"]Here is the history on the 1980 bubble in silver (Hunt Brothers corner silver market)</p><p><br /></p><p><br /></p><p><br /></p><p>Beginning in the early 1970s, Nelson Bunker Hunt and his brother William Herbert Hunt began accumulating large amounts of silver. By 1979, they had nearly cornered the global market<u>. </u><a href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-TEXAS-5" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-TEXAS-5" rel="nofollow"></a> In the last nine months of 1979, the brothers profited by an estimated $2 billion to $4 billion in silver speculation, with estimated silver holdings of 100 million <a href="http://en.wikipedia.org/wiki/Troy_weight#Troy_ounce" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Troy_weight#Troy_ounce" rel="nofollow">ounces</a>.<a href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-Time1-6" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-Time1-6" rel="nofollow"></a></p><p> </p><p><br /></p><p>During the Hunt brothers' accumulation of the precious metal, prices of silver <a href="http://en.wikipedia.org/wiki/Futures_contracts" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Futures_contracts" rel="nofollow">futures contracts</a> and silver bullion during 1979 and 1980 rose from $11 an ounce in September 1979 to $50 an ounce in January 1980. Silver prices ultimately collapsed to below $11 an ounce two months later. The largest single day drop in the price of silver occurred on <a href="http://en.wikipedia.org/wiki/Silver_Thursday" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Silver_Thursday" rel="nofollow">Silver Thursday (27 March 1980)</a><a href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0" rel="nofollow"></a></p><p> </p><p><br /></p><p>The Hunt brothers had invested heavily in futures contracts through several brokers, including the brokerage firm <a href="http://en.wikipedia.org/wiki/Halsey,_Stuart_%26_Co." target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Halsey,_Stuart_%26_Co." rel="nofollow">Bache Halsey Stuart Shields</a>, later <a href="http://en.wikipedia.org/wiki/Prudential-Bache_Securities" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Prudential-Bache_Securities" rel="nofollow">Prudential-Bache Securities</a> and <a href="http://en.wikipedia.org/wiki/Prudential_Securities" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Prudential_Securities" rel="nofollow">Prudential Securities</a>. When the price of silver dropped below their minimum <a href="http://en.wikipedia.org/wiki/Margin_%28finance%29" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Margin_%28finance%29" rel="nofollow">margin</a> requirement, they were issued a <a href="http://en.wikipedia.org/wiki/Margin_call" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Margin_call" rel="nofollow">margin call</a> for $100 million. The Hunts were unable to meet the margin call, and, with the brothers facing a potential $1.7 billion loss, the ensuing panic was felt in the financial markets in general, as well as commodities and futures. Many Government officials feared that if the Hunts were unable to meet their debts, some large Wall Street brokerage firms and banks might collapse.<a href="http://en.wikipedia.org/wiki/Silver_Thursday#cite_note-1" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Silver_Thursday#cite_note-1" rel="nofollow">[2]</a> </p><p>To save the situation, a consortium of US banks provided a $1.1 billion line of credit to the brothers which allowed them to pay Bache which, in turn, survived the ordeal. The <a href="http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission" rel="nofollow">U.S. Securities and Exchange Commission</a> (SEC) later launched an investigation into the Hunt brothers, who had failed to disclose that they in fact held a 6.5% stake in Bache.<a href="http://en.wikipedia.org/wiki/Silver_Thursday#cite_note-2" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Silver_Thursday#cite_note-2" rel="nofollow">[3]</a></p><p><br /></p><p><br /></p><p>Hunt filed for bankruptcy under <a href="http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code" rel="nofollow">Chapter 11 of the Federal Bankruptcy Code</a> in September 1988, largely due to lawsuits incurred as a result of his silver speculation<u>.</u><a href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0" rel="nofollow"></a></p><p> In 1989 in a settlement with the <a href="http://en.wikipedia.org/wiki/United_States" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/United_States" rel="nofollow">United States</a> <a href="http://en.wikipedia.org/wiki/Commodity_Futures_Trading_Commission" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Commodity_Futures_Trading_Commission" rel="nofollow">Commodity Futures Trading Commission</a>, Nelson Bunker Hunt was fined US$10 million and banned from trading in the commodity markets as a result of charges of conspiring to manipulate the silver market stemming from his attempt to <a href="http://en.wikipedia.org/wiki/Corner_the_market" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Corner_the_market" rel="nofollow">corner the market</a> in silver.<a href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0" rel="nofollow"></a> This fine was in addition to a multimillion-dollar settlement to pay back taxes, fines and interest to the <a href="http://en.wikipedia.org/wiki/Internal_Revenue_Service" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Internal_Revenue_Service" rel="nofollow">Internal Revenue Service</a> for the same period<u>.</u><a href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0" rel="nofollow"></a>[/QUOTE]</p><p><br /></p>
[QUOTE="WingedLiberty, post: 1011016, member: 26030"]Here is the history on the 1980 bubble in silver (Hunt Brothers corner silver market) Beginning in the early 1970s,[B] [/B]Nelson Bunker Hunt and his brother William Herbert Hunt began accumulating large amounts of silver. By 1979, they had nearly cornered the global market[U]. [/U][URL="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-TEXAS-5"][/URL] In the last nine months of 1979, the brothers profited by an estimated $2 billion to $4 billion in silver speculation, with estimated silver holdings of 100 million [URL="http://en.wikipedia.org/wiki/Troy_weight#Troy_ounce"]ounces[/URL].[URL="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-Time1-6"][/URL] During the Hunt brothers' accumulation of the precious metal, prices of silver [URL="http://en.wikipedia.org/wiki/Futures_contracts"]futures contracts[/URL] and silver bullion during 1979 and 1980 rose from $11 an ounce in September 1979 to $50 an ounce in January 1980. Silver prices ultimately collapsed to below $11 an ounce two months later. The largest single day drop in the price of silver occurred on [URL="http://en.wikipedia.org/wiki/Silver_Thursday"]Silver Thursday (27 March 1980)[/URL][URL="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0"][/URL] The Hunt brothers had invested heavily in futures contracts through several brokers, including the brokerage firm [URL="http://en.wikipedia.org/wiki/Halsey,_Stuart_%26_Co."]Bache Halsey Stuart Shields[/URL], later [URL="http://en.wikipedia.org/wiki/Prudential-Bache_Securities"]Prudential-Bache Securities[/URL] and [URL="http://en.wikipedia.org/wiki/Prudential_Securities"]Prudential Securities[/URL]. When the price of silver dropped below their minimum [URL="http://en.wikipedia.org/wiki/Margin_%28finance%29"]margin[/URL] requirement, they were issued a [URL="http://en.wikipedia.org/wiki/Margin_call"]margin call[/URL] for $100 million. The Hunts were unable to meet the margin call, and, with the brothers facing a potential $1.7 billion loss, the ensuing panic was felt in the financial markets in general, as well as commodities and futures. Many Government officials feared that if the Hunts were unable to meet their debts, some large Wall Street brokerage firms and banks might collapse.[URL="http://en.wikipedia.org/wiki/Silver_Thursday#cite_note-1"][2][/URL] To save the situation, a consortium of US banks provided a $1.1 billion line of credit to the brothers which allowed them to pay Bache which, in turn, survived the ordeal. The [URL="http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission"]U.S. Securities and Exchange Commission[/URL] (SEC) later launched an investigation into the Hunt brothers, who had failed to disclose that they in fact held a 6.5% stake in Bache.[URL="http://en.wikipedia.org/wiki/Silver_Thursday#cite_note-2"][3][/URL] Hunt filed for bankruptcy under [URL="http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code"]Chapter 11 of the Federal Bankruptcy Code[/URL] in September 1988, largely due to lawsuits incurred as a result of his silver speculation[U].[/U][URL="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0"][/URL] In 1989 in a settlement with the [URL="http://en.wikipedia.org/wiki/United_States"]United States[/URL] [URL="http://en.wikipedia.org/wiki/Commodity_Futures_Trading_Commission"]Commodity Futures Trading Commission[/URL], Nelson Bunker Hunt was fined US$10 million and banned from trading in the commodity markets as a result of charges of conspiring to manipulate the silver market stemming from his attempt to [URL="http://en.wikipedia.org/wiki/Corner_the_market"]corner the market[/URL] in silver.[URL="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0"][/URL] This fine was in addition to a multimillion-dollar settlement to pay back taxes, fines and interest to the [URL="http://en.wikipedia.org/wiki/Internal_Revenue_Service"]Internal Revenue Service[/URL] for the same period[U].[/U][URL="http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt#cite_note-NYT-0"][/URL][/QUOTE]
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