The manager of a nearly $700 million exchange traded fund that holds silver says it is bullish on the metal despite last week’s sell-off, although there is a catch.
William Rhind, manager director at ETF Securities U.S., says silver prices should mend “barring further Comex margin increases.”
Last week’s 30% plunge in silver has been blamed on profit taking and signs of life in the U.S. dollar. Margin hikes in silver contracts have also reportedly shaken out speculators who flocked to the rally.
ETF Securities sponsors ETFS Physical Shares (NYSEArca: SIVR). Other ETFs that provide investors with exposure to silver prices include iShares Silver Trust (NYSEArca: SLV) and PowerShares DB Silver (NYSEArca: DBS). [Silver ETF Volume Explodes on Margin Hikes, Volatility]
Silver prices have fallen sharply from $50 an ounce and were trading above $38 in recent action. Silver ETFs followed the move higher Tuesday.