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.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.