Wed Oct 22 01:50:00 UTC 2025: Okay, here’s a news article based on the provided text, summarizing the Hunt Brothers’ silver saga and drawing parallels to the recent surge in silver prices in India:
Silver Surge Sparks Memories of Hunt Brothers’ Infamous Market Manipulation
New Delhi, India – Silver prices have more than doubled in the past 10 months in India, soaring from ₹86,000 to ₹1.70 lakh per kilogram. This meteoric rise has prompted comparisons to a historical event known as “Silver Thursday,” when the actions of two wealthy brothers nearly brought down the global silver market.
In the late 1970s, Nelson Bunker Hunt and William Herbert Hunt, heirs to a vast oil fortune, began amassing massive amounts of silver, both physically and through futures contracts. Their belief that a weakening dollar and rising inflation would drive silver prices skyward led them to control an estimated one-third of the world’s silver supply.
By 1979, silver had jumped from $2 per ounce to $6, and by December it reached $25. In January 1980 the price was over $50 per ounce. The Hunt brothers manipulated prices by taking physical delivery of silver, thus creating a supply shortage. They effectively became the “puppet masters” of the silver market, artificially inflating prices.
However, their scheme began to unravel when the Commodity Exchange, Inc. (COMEX) introduced “Silver Rule 7,” imposing restrictions on margin purchases of commodities. This made it difficult for the Hunts to continue borrowing money to buy silver.
On March 27, 1980, “Silver Thursday,” the Hunt Brothers failed to meet a margin call. Brokers began selling off their silver holdings, and the price plummeted by over 50% in a single day. The Hunt brothers were investigated for alleged criminal activity, declared bankruptcy, and were eventually fined and banned from trading commodities.
The price of silver crashed again in 2011, falling quickly from $50 per ounce to $26 per ounce. Now, over a decade later, with silver again trading above $50 an ounce (₹1.55 lakh/kg), many are wondering if a similar crash is imminent.
Analysts suggest that while volatility is inherent in silver prices, safeguards put in place after “Silver Thursday” make such large-scale manipulation more difficult today. Furthermore, the fundamentals driving silver’s value have changed. Industrial demand, particularly for photovoltaic cells in solar panels, plays a significant role.
According to analysts, the recent increase in prices is not a speculative bubble, but due to industrial demand and inflation. A correction is possible, but sharp falls such as in 1980 and 2011 are unlikely.
This year, silver has given 37% more returns than gold. The question on many people’s minds is, is it the right time to invest in silver? And what are some safe investment strategies?
[End of Article]
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