Interesting business background about Lamar Hunt, founder of the KC Chiefs
stevek
Posts: 28,991 ✭✭✭✭✭
Pasted:
Lamar Hunt
Born: August 2, 1932
El Dorado, Arkansas, U.S.
Died: December 13, 2006 (aged 74)
Dallas, Texas, U.S.
Hunt Brothers Silver speculation
During the 1970s and early 1980s, Hunt and his brothers Nelson Bunker Hunt and William Herbert Hunt attempted to corner the silver market. They began buying silver in the early 1970s. By the end of 1979, their ownership of one-third of the world silver market caused the price to rise from $11 an ounce in September 1979 to $50 an ounce in January 1980. In the last nine months of 1979, the brothers profited by an estimated $2 billion to $4 billion. However, on March 27, 1980, subsequently referred to within the precious-metals industry as Silver Thursday, the price collapsed. In September 1988, the Hunt brothers filed for bankruptcy under the United States Bankruptcy Code Chapter 11.
Comments
There plan made me a tidy sum on silver back then.
Yes, if they cashed out. Not sure what happened between March 27, 1980 when the price of silver collapsed, and September 1988 when they went bankrupt. That's a gap of over 8 years. Unless the date of 1988 should actually be 1980?
it was pasted from Wiki, and that website is prone to making errors.
All my silver was gleaned out of circulation in the mid/late 60's and cashed out before the crash.
Interesting story about this silver boom/bust you might enjoy. "Everyone" knew at the time what the Hunts were doing, it wasn't any big secret. But I think most figured it wouldn't finally crash like it did.
Anyway during the rise, at least in the Philly area, some genius figured out that the silver sold in retail stores, IE sterling silver in various kitchen utensils, trays, tea servers, etc, was worth more at melt than retail price in the store. The store prices weren't adjusted to account for the rapid rise in the price of silver.
So this guy went around to as many retail stores as he could, and bought out all the silver in the stores. He must have made a small or large quick fortune doing that.
When the story about this silver buying spree came out in the newspaper, everyone and his brother wished that they would have thought of the idea, including me.
Could happen again, and if it does, I will quickly be at the stores maxing out my credit cards and using all the cash I can carry. 😆