Exchange traded funds (ETFs) that bet against silver have been steamrolled by the rally in “poor man’s gold.”
However, they rose sharply on Tuesday as silver appears to have failed its first attempt to break through $50 an ounce, a level last seen more than three decades ago.
ProShares UltraShort Silver (NYSEArca: ZSL) was the top percentage gainer in ETFs on Tuesday, rising more than 8% in afternoon trading.
ProShares UltraShort Silver is designed to produce daily returns that correspond to 200% of the inverse performance of silver bullion.
Also Tuesday, Direxion Daily Gold Miners Bear 2x Shares (NYSEArca: DUST) climbed over 3%. It is a leveraged wager against gold-miner stocks.
Global X Silver Miners ETF (NYSEArca: SIL) dropped nearly 3% as silver miners followed silver prices lower. The iShares Silver Trust (NYSEArca: SLV) shed almost 4% at last check.
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.