In the late 1970s, a shocking speculative storm unfolded in the precious metals market. The cause sounded simple: two oil magnates spotted a severely undervalued commodity.

The Hunt family made their fortune in oil, but the nationalization of Libyan oil fields cost them over $4 billion. This huge loss prompted them to seek new investment avenues. Silver caught their eye — at the time, priced at around $2 per ounce, with industrial demand (photography, electronics) and investment demand (hedging inflation) coexisting, making it look like a foolproof deal.

They teamed up with the Saudi royal family and several brokers to secretly accumulate silver through offshore accounts. By 1979, this consortium controlled over 50% of the global silver inventory — 120 million ounces of spot silver plus 50 million ounces of futures. They also built large long positions on the New York Mercantile Exchange (COMEX) and the Chicago Board of Trade (CBOT).

The frenzy began in August 1979. In just five months, silver prices skyrocketed from $6 to $50.35 per ounce, an increase of over 800%. The market spiraled out of control. Consumers started melting down silver jewelry to sell the silver; Indian brides sold their heirloom silver jewelry at low prices for cash. Supply was completely squeezed dry, and prices surged even higher.

This is the famous "Silver Thursday" crisis — ultimately ending in a market crash that left the Hunt brothers with over $1.7 billion in debt. This upheaval not only rewrote the rules of precious metals trading but also became one of the most cautionary lessons in financial regulation history. To this day, it still reminds market participants: no matter how carefully a manipulation plan is designed, it cannot escape the punishment of market laws.