This price was affected in the UK by the prevailing exchange rate of dollars to pounds on the day.
I well remember the sudden interest in antique objects made from .925 silver, which had always been a fairly steady dormant figure; this was about to change beyond reality.
Three American brothers, Bunker, William, and Lamar Hunt (collectively still known today as “Bunker Hunt”), attempted to corner the worldwide silver market.
On or around January 1, 1980, the world price of silver rose from a mere six dollars a troy ounce to fifty dollars per troy ounce.
The brothers had bought all the silver holdings and committed themselves to buying silver on the futures market at this very high price.
Obviously, this affected the price of new silver items and, as well as the antique, causing panic in the market.
It was estimated that by early 1980, “Bunker Hunt” were holding up to one third of the entire supply of silver, amounting to over a hundred million troy ounces; the effect on the manufacture of silver items was dire, with the raw material costs going up ten times.
Much adverse comment came from both manufacturers and governments.
The brothers had borrowed heavily for their purchases.
Inevitably, the bubble burst, and the world price of silver began to fall, dropping fifty per cent in just four days.
The brothers were unable to meet their commitments, causing a panic in the market.
The instigators faced a 1.7 billion dollar loss.
The Hunt family were wealthy, and sold off much of their other assets to fund the losses.
They also compensated a Peruvian mine to fund the loss they had incurred of some 134 million dollars.
In 1988, the brothers were declared bankrupt and had to pay some 140 million pounds in damages; this was the largest fine in Texas history.
Silver is mined in four main centres in the world, Mexico, China, Peru, and Chile; this metal is actually a by-product of copper and lead ore.
Supplies from some countries can be unstable at times due to conflict within the country.
After this, silver items settled down to a normal level, but for how long?
Our thanks to Keys Auctioneers for the image of the silver.
Mike Hicks has run Stalham Antique Gallery at 29 High Street, Stalham (NR12 9AH) for more than 30 years. His business is open Mondays to Fridays from 9am-1pm and 2-4.30pm, and on Saturdays from 9am-1pm. You can contact Mike on 01692 580636 or info@mikehicksantiques.co.uk or www.mikehicksantiques.co.uk
