What You Can Learn From The SLV Crash

One of the wildest momentum swings in modern financial history just happened.

It all started when the U.S. dollar lost 30% in 2025.

Traders panicked, flooding into precious metals as the obvious dollar hedge.

The iShares Silver Trust (SLV) surged 144.66% for the year. The SPDR Gold Shares (GLD) gained 65%.

Absolutely historic moves for metals, for sure…

But all the promoters said the same thing: “The dollar is dying. Precious metals and crypto are the only hedges left. Diamond hands!”

They told everyone to buy and hold. They said the thesis was unbreakable, that these assets would only go higher.

Then last Friday happened.

SLV crashed 30%, the biggest single-day decline in its history. GLD dropped 15% the same day, also its biggest decline ever.

The HODL fest ended in a bloodbath.

Shocker… (not).

I’ve seen this pattern play out thousands of times in penny stocks, meme coins, NFTs, GameStop, Beanie Babies (the list goes on)…

An asset gets hyped, the price goes parabolic. Promoters say it’s different this time, while HODLers mock anyone who takes profits.

Then the violent crash comes and wipes them all out.

You don’t even need to trust my experience. Just look at history.

Because if you don’t know what happened on March 27, 1980, you’re doomed to repeat one of the most expensive mistakes in stock market history…

The Hunt Brothers’ $10 Billion Mistake

In the 1970s, inflation was out of control, reaching peaks of 13-15% year-over-year.

The Hunt brothers (billionaire oil heirs) feared inflation would destroy the dollar, so they started buying silver.

Physical silver, silver futures, and early silver funds. They snatched up as much silver as they could get their hands on.

At their peak, they controlled an estimated 100 million ounces. Enough to distort prices and alarm regulators.

The price of silver went from around $6 per ounce in early 1979 to nearly $50 by January 1980.

A 713% increase in just over a year.

(Sound familiar?)

Everyone thought it would keep going higher. The promoters said silver was heading to $100, $200, maybe more, while inflation raged and the dollar weakened.

But like all momentum runs, this one was doomed to end.

In January 1980, regulators stepped in. COMEX (Commodity Exchange) raised margin requirements and implemented liquidation-only rules. No new long positions allowed.

These emergency measures stopped new buying and forced leveraged players (especially the Hunts) to sell silver or post cash as collateral.

The Hunt brothers had borrowed huge amounts to finance their purchases. They were leveraged to the gills.

When the margin calls started ringing, they couldn’t meet their obligations.

Then came Silver Thursday. March 27, 1980.

One of the most brutal commodity crashes in modern history.

Within days, the price of silver had fallen more than 50%.

The Hunt brothers defaulted on hundreds of millions in margin calls. Their losses ultimately totaled billions. Banks and brokerage firms that had lent them money faced catastrophic losses.

A $1.1 billion emergency credit facility was arranged by banks (with Federal Reserve encouragement) to prevent the financial system from collapsing.

But the Hunts themselves weren’t saved.

They were later sued, fined, and barred from commodities trading for life.

What Happened After The First Crash?

The 70s silver promoters told everyone the crash was temporary.

Hold through the pain, they said.

And silver proceeded to give back everything. The first major red day in 1980 marked the beginning of a collapse that erased all the gains.

Traders who listened to the promoters and held through the crash watched their accounts get obliterated.

And the promoters today? They’re telling everyone to “HODL.” To “buy the dip.” To “trust the thesis.”

New era, same story…

History Doesn’t Repeat, But It Rhymes

I don’t know what will happen to SLV and GLD next. No two moves are exactly the same.

History doesn’t repeat exactly. But it rhymes.

The SLV, GLD, and bitcoin promoters can say whatever they want to try to back up their thesis. No different than the silver promoters in 1980 who told everyone to hold through the crash.

Desperate longs try anything and everything to endlessly hype, hype, hype to get people to HODL irresponsibly.

But in the end, price action is king.

When stocks get overextended into a cultish bull run (like SLV and GLD in 2025), the HODLers become a lost cause.

This is why I focus on day trades.

You get in, you get out, you take your gains, and you move on.

“Diamond hands” aren’t a virtue as a trader.

This price action is clear to anyone with eyes and a brain.

The momentum has flipped, the charts don’t lie…

The question is: Will you pay attention to what the market is telling you? Or will you listen to the promoters who need you to keep buying so they can exit their held bags?

In 1980, the investors who ignored the first major red day and listened to the promoters lost everything.

Consider that in your planning. Don’t blindly listen to the many promoters of these and too many other assets whose price action momentum has clearly flipped.

Stop With The Excuses

“This Time It’s Different” are the four most expensive words in the English language.

It’s NEVER different.

Stop listening to random promoters on social media. This is exactly why 90%+ of traders lose.

You can avoid pain, frustration, and losses by simply taking gains along the way.

I know, I know. Conservative trading isn’t as much fun.

But as my 50+ millionaire students prove (especially Strati’s record low-risk trading month), you can make more than enough money WITHOUT taking giant risks or using leverage.

Small gains DO add up.

If you have any questions, email me at [email protected].

Cheers,

Tim SykesEditor, Tim Sykes Daily