A leveraged exchange traded fund (ETF) that lets investors short silver was down nearly 8% in premarket action Monday as the metal’s price soared to almost $50 an ounce.

ProShares UltraShort Silver (NYSEArca: ZSL) slipped 7.6% before Monday’s opening bell. The so-called leveraged inverse ETF has been trampled by the seemingly unstoppable rally in silver.

The bearish silver ETF plunged last week while trading volume in the fund surged. [Silver Rally Squeezes Bearish ETF as Trading Volume Spikes.]

ProShares UltraShort Silver is designed to produce daily returns that correspond to 200% of the inverse performance of silver bullion.

The iShares Silver Trust (NYSEArca: SLV) rallied more than 5% in Monday’s premarket.

ProShares UltraShort Silver

Full disclosure: Tom Lydon’s clients own SLV.

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