Silver Thursday

AAA

DEFINITION of 'Silver Thursday'

A steep fall in the price of silver that occurred on Thursday March 27, 1980. The sharp drop, on Silver Thursday, was triggered by a failed attempt to corner the silver market and it led to massive panic in other commodities.

INVESTOPEDIA EXPLAINS 'Silver Thursday'

The attempt to corner the silver market was made by brothers Nelson Bunker Hunt and Herbert Hunt. The sharp sell-off occurred once the two men were unable to meet various margin calls that were caused by short-term weakness in the silver price. A group of U.S. banks needed to step in with a $1.1 billion line of credit, which helped bring stability back into the futures markets.

RELATED TERMS
  1. Silver Certificate

    Former legal tender (paper currency) issued by the U.S. government ...
  2. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest ...
  3. Consortium

    A group made up of two or more individuals, companies or governments ...
  4. Corner A Market

    To acquire enough shares of a particular security type, such ...
  5. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) ...
  6. Futures Market

    An auction market in which participants buy and sell commodity/future ...
Related Articles
  1. Market Speculators: More Help Than Harm
    Options & Futures

    Market Speculators: More Help Than Harm

  2. Trading Gold And Silver Futures Contracts
    Options & Futures

    Trading Gold And Silver Futures Contracts

  3. Connecting Crashes, Corrections And ...
    Active Trading

    Connecting Crashes, Corrections And ...

  4. The Crash Of 1929 - Could It Happen ...
    Personal Finance

    The Crash Of 1929 - Could It Happen ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center