Silver And Gold's Second Up Leg - My Notes From Silver Thursday

2026-02-03 07:12:26 ET

What I learned about the second leg up

About a week ago, I wrote an article to caution potential investors to temper their FOMO (fear of missing out) on gold and silver at those price levels. At that time, both metals were trading near their ATH (all-time highs). My caution is rooted in the similarities I saw between today's market and the 1980 Hunt Brothers episode (aka Silver Thursday). For readers new to this part of the history, the following recap should bring you up to speed with the rest of this article:

In January 1980, silver price peaked around $48 per ounce, representing a ~700% increase in a year (see the next chart below). The surge was largely driven by concentrated long positions, funded by substantial leverage by Nelson Bunker Hunt and William Herbert Hunt, collectively known as the Hunt brothers. The rally did not last, and the silver price fell (and gold prices too) sharply afterwards, causing heavy losses to the Hunt brothers and forcing them to declare bankruptcy later.

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