Leveraged exchange traded funds (ETFs) for silver saw moves of 17% on Thursday as the metal’s price continued to plunge and the U.S. dollar rallied.
ProShares Ultra Silver (NYSEArca: AGQ) was down nearly 17% in afternoon trading as silver crashed below $36 an ounce. The ETF shoots for daily results that correspond to 200% of the performance of silver bullion. Its plunge illustrates the power of leverage.
However, its bearish counterpart, ProShares UltraShort Silver (NYSEArca: ZSL), rallied by a similar percentage on Thursday.
The largest ETF for silver by assets, iShares Silver Trust (NYSEArca: SLV), was down 8% in recent trading. Thursday’s sell-off pushed the ETF below its 50-day moving average, signaling that further losses could be on tap.
ProShares Ultra Silver (NYSEArca: AGQ)
Full disclosure: Tom Lydon’s clients own SLV.
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