Black Friday Stock Market Crash of 1869: Gold Price Plunge and Market Collapse Explained
Discover the dramatic events of the Black Friday stock market crash on September 24, 1869, triggered by an attempt to monopolize the gold market, leading to a historic financial collapse.
The Black Friday Stock Market Crash of 1869: A Historic Financial Disaster
On September 24, 1869, the U.S. stock market experienced a catastrophic crash, now famously known as Black Friday. This event was not related to the modern shopping holiday but was instead caused by aggressive speculation in the gold market that led to a sudden and severe price collapse.
The crash was orchestrated by a group of speculators led by Jay Gould and James Fisk, who aimed to corner the gold market. Throughout early September, they aggressively purchased massive amounts of gold bullion, driving its price to unprecedented highs. Their scheme included enlisting Abel Corbin, President Ulysses S. Grant’s brother-in-law, to influence the president into restricting gold sales, which would artificially inflate gold prices even further.
However, their plan backfired when President Grant discovered the manipulation. In response, he directed the U.S. Treasury to release $4 million worth of gold into the market. This intervention caused the gold price to plummet from $160 to $130 per ounce on September 24, 1869. The gold market collapse triggered a broader stock market crash, with prices dropping over 20% in the following week, devastating countless investors.
This event marked the first time a major market downturn was labeled a “Black” day, setting a precedent for future financial crashes such as Black Tuesday in 1929 and Black Monday in 1987. The 1869 Black Friday remains a pivotal moment in financial history, illustrating the dangers of market manipulation and speculative bubbles.
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