In this paper we present results on parametrically forced gravity waves in a circular cylinder in the limit of large fluid-depth approximation. The phase diagram that shows the stability-forcing-amplitude threshold and the wave-breaking threshold has been determined in the frequency range of existence of the lowest axisymmetric wave mode. The instability is shown to be supercritical for forcing frequencies at and above the natural frequency and subcritical below in a frequency range where the instability and breaking thresholds do not coincide. Above the instability threshold, the growth in wave amplitude is exponential, but with an initial time delay. The wave-amplitude response curve of stationary wave motions exhibits steady-state wave motion, amplitude modulations and bifurcations to other wave modes at frequencies where the parametric instability boundary of the axisymmetric mode overlaps with the neighbouring modes. The amplitude modulations are either on a slow time scale or exhibit period tripling and intermittent period tripling, without wave breaking. In the wave-breaking regime, a finite-time singularity may occur with intense jet formation, a phenomenon demonstrated by others in fluids of high viscosity and large surface tension. Here, this singular behaviour with jet formation is demonstrated for a low viscosity and low kinematic surface tension liquid. The results indicate that the jet is driven by inertial collapse of the cavity created at the wave trough. Therefore, the jet velocity is determined by the wave fluid velocity but depends, in addition, on kinematic surface tension and viscosity as these affect the last stable wave crest shape and the cavity size.