Nelson shelter Hunt (* 22 February 1926 in Dorado, Arkansas, the USA) is an American speculator.

Hunt is the son of the oil billionaire H.L. Hunt. The texanische family Hunt was a prominent size in the oil business and possessed large oil fields, among other things in Libya. The Hunts was at that time one of the wealthiest families of the USA.

Admits became Nelson shelter Hunt by the silver speculation, which he operated together with its younger brother Herbert William Hunt starting from center of the 70's.

Silver speculation

The brothers Hunt bought silver in this time in co-operation with several wealthy Arab businessmen - on a large scale, both physically and at the goods futures exchange.

Altogether the Hunts and its partners bought about 150 million ounces (approx. 5000 tons) physical silver as well as approx. 200 million ounces silver at the goods futures exchange COMEX in New York.

The Hunts let the physical silver partly bring in particularly chartered air freighters to Zurich and London, also because they did not trust the American state and feared a Konfiszierung. (In the year 1933 president Roosevelt had forbidden the private gold possession in the USA and all gold, which had not been exchanged under menace of drakonischer punishments in time in paper money, one seized. This gold possession prohibition applied into the year 1974). The price for an ounce silver rose from under 2 dollar in the year 1973 up to 50 dollar in January 1980.

The calamity

While it succeeded to the Hunts to bring their physical silver in security them the business at the goods futures exchange became calamity part from greed, partly from self over-estimation last partly bought them with far rising rate of silver ever larger quantities of silver contracts to the COMEX, on credit.

In the middle of January 1980 - the rate of silver stood nearly on 50 dollar per ounce - struck back the American financial establishment: over night by the supervision by the stock exchange committee the rules were changed to the COMEX. No further purchases could more be transacted, thus no new long positions more be received. It became "liquidation only" - trade arranged, only existing long positions were allowed to become balanced against existing short positions.

Thus the rate of silver could fall only, and it did also immediately, particularly since the short positioned major banks set their purchase requirements strongly downward.

That led to dramatic losses with the long positions of the Hunts, which had to adjust this value purge immediately in cash - however could not. In order to follow their liabilities, they had to sell parts of their long positions at each price, which the price purge far accelerated.

Within fewer weeks many billions dollar were to be paid, which consumed the entire fortune until finally the bankruptcy to be explained had.

It is assumed the fact that the opponents of the Hunts - which major banks and the American financial establishment at the east coast - briefly before the change of rule at the COMEX substantial short positions (thus speculations on a falling price), along-initiated by them, bought and at the change of rule billions dollar arranged by them to have earned.

The surrounding field of the silver market

Additionally the fall of the rate of silver was accelerated by the panic-like sales rope that small speculators and investors, who had followed the example of the Hunts.

In addition large quantities of physical silver on the market had emerged, because private individuals due to the price rise - which rate of silver had itself in few years more than verzwanzigfacht - in large yardstick silver articles, decoration, cutlery and silver coins sold and to melt left.

The relating to financial policy surrounding field of the 70's

The silver purchases of the Hunts had been however not the only reason, probably not even the principal reason for the strong rate of silver rise. The 70's were characterized following by large disconcertion of the financial world, oil crisis, the threatening wars and crises (Yom Kippur war, fall of the Schahs in Iran, Afghanistan war of the USSR) substantial rise of the national indebtedness of the USA by the Viet Nam war, substantial expansion (paper) of the money supply, high inflation rates connected with high fears of inflation and escape of the capital investors into real values. Thus also the gold price of 35 dollar rose in the year 1973 to 850 dollar in the year 1980.

The aftereffects of the Hunt' silver speculation

Since that time the brothers Hunt are considered as the prototype of the failed speculator, who brought it by greed, self over-estimation as well as underestimation of its opponents within shortest time of sayful wealth to the bankruptcy.

The rise and following collapse of the rate of silver, which gave substantial losses to at that time also innumerable private investors, fastened at the brothers Hunt and their speculation, damaged the silver market psychologically lastingly. Over 20 years a long bear market with falling or stagnating prices after 1980 for silver, which seems to have found its end only in the year 2004, followed. Hunt' trauma and the legends around their deep case are still deeply in the psychology of the silver market verwurzelt and certainly the silver as investment of funds medium with the broad mass of investors as well as financial specialists in disrepute brought. This very day - over 25 years after their failure - hardly a contribution meant for the broader public is written over the silver, in which the brothers Hunt and their failure in the silver market are not quoted as deterring example.

Literature

• Stephen Fay: "Great Silver Bubble" Hodder & Stoughton general division, London 1982, ISBN 034028370X

Related links

History of the silver speculation of the brothers Hunt (English)

Articles in category "Nelson shelter Hunt"

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