A seemingly unstoppable rally in silver prices this week has burned traders who bet against the metal with exchange traded funds (ETFs).

The recent spike in trading volume in ProShares UltraShort Silver (NYSEArca: ZSL) suggests some traders had been positioning for a pullback in silver prices, notes Chris Kimble at Kimble Charting Solutions. The analyst wonders if the silver rally this week is related to the unwinding of positions by investors who bought the bearish ETF.

ProShares UltraShort Silver was down nearly 3% in afternoon dealings Friday.

Meanwhile, options traders have reportedly been stepping up their wagers against iShares Silver Trust (NYSEArca: SLV).

The silver ETF was up more than 1% on Friday to cap a strong week with a new record high.

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.