When The World's Richest Brothers Took Over The Silver Market: The Hunt Family скачать в хорошем качестве

When The World's Richest Brothers Took Over The Silver Market: The Hunt Family

Two of the world's richest men - The Hunt Brothers - held silver in quantites of nearly half the world's privately held silver supply by 1980, then were triggered by Silver Thursday's 50% single-day collapse that cost them $1.7 billion they didn't have. ----------------------------- Gain FREE access to secret full-length documentaries on wealthy families "too scandalous for YouTube" by joining our newsletter: https://www.substack.com/@oldmoneyluxury ----------------------------- TIMESTAMPS: 0:00 Introduction 1:44 Chapter One: The Wildcatter's Sons 6:24 Chapter Two: The Inflation Panic 11:03 Chapter Three: The Squeeze 14:08 Chapter Four: The Government Strikes Back 17:17 Chapter Five: Silver Thursday 20:39 Chapter Six: The Dynasty Endures ----------------------------- On March 27, 1980, two Texas billionaires woke up to discover they owed $1.7 billion they didn't have. Nelson Bunker Hunt had called his brother William Herbert with a single instruction: "Shut it down." Within hours, silver prices collapsed by more than 50%—from $21.62 to $10.80 per ounce. Wall Street called it Silver Thursday, and the Hunt brothers had just lost $10 billion in paper gains. Just three months earlier, they had controlled nearly half the world's privately held silver supply worth $10 billion—enough to make them temporarily among the richest individuals on earth. Their father Haroldson Lafayette Hunt Jr. was born in 1889 and believed formal education was "an obstacle to making money." In 1930, using his last $109 plus borrowed capital, H.L. Hunt acquired rights to the East Texas Oil Field—one of the richest oil deposits in the world. By the 1950s, Fortune ranked him among the eight richest Americans with personal wealth ranging from $300-700 million and income exceeding $1 million per week. When he died in 1974, he left an estate of $2-3 billion divided among his numerous heirs from three separate families. His sons Nelson Bunker and William Herbert inherited not merely wealth, but their father's willingness to pursue outsized bets. The 1970s terrified wealthy Americans as inflation accelerated to double digits and the dollar depreciated rapidly. Nelson Bunker saw silver trading below $2 per ounce in the early 1970s and calculated it could increase tenfold as the dollar collapsed. Beginning in the early 1970s, the brothers purchased massive quantities of physical silver while simultaneously buying futures contracts—then took physical delivery instead of settling for cash. By late 1979, the Hunts had accumulated approximately 100-195 million ounces of physical silver—roughly one-third of the world's privately held supply. They formed International Metals Investment Company, partnering with Mahmoud Fustok, a Saudi businessman and brother-in-law to the Saudi crown prince. The partnership brought an additional 40-150 million ounces under their coordination, expanding their position to potentially 200+ million ounces. Silver moved from $11 per ounce in September 1979 to a peak of $50.35 on January 18, 1980—a 700% increase in less than four months. At the apex, the Hunt brothers' $10 billion position was built on perhaps $1-2 billion in actual capital combined with $1.5 billion in broker loans. On January 7, 1980—eleven days before silver's peak—the Commodity Exchange adopted "Silver Rule 7," increasing margin requirements from 10% to nearly 100%. The new rules banned new purchases of silver futures on margin and imposed strict position limits, effectively eliminating the architecture the Hunts had used to build their position. Federal Reserve Chairman Paul Volcker raised interest rates from 11.75% to 20% and "quietly encouraged" banks to cease lending for precious metals speculation. The collapse came on March 27, 1980, when silver fell 50% in a single trading day and the Hunts' $10 billion in paper gains evaporated instantly. Volcker personally authorized a $1 billion emergency loan to facilitate the Hunts' settlement—the Hunts were too big to fail. In 1988, a federal jury found the brothers guilty of violating racketeering laws, fraud, commodities statutes, and antitrust regulations, awarding $130-134 million in damages. Both brothers declared bankruptcy in 1988 with debts exceeding $1.5 billion. Today, Forbes estimates the total Hunt family net worth at $24.8 billion, making them the 12th wealthiest family in the United States. --- *Word count: 491* *Tags:* hunt brothers, silver thursday, commodity trading, hunt oil, nelson bunker hunt, texas billionaires, precious metals, financial crisis, federal reserve, paul volcker, market manipulation, old money, wealthy families, 1980s finance, commodity speculation, oil tycoons (318 characters)