Silver exchange traded funds (ETFs) bounced in late-morning trade, paring some of their earlier losses as investors weighed the impact of the death of al-Qaeda leader Osama bin Laden and a margin hike for silver futures.

Still, iShares Silver Trust (NYSEArca: SLV) was down more than 2% at last check. It was once again the ETF volume leader in terms of shares traded.

A leveraged ETF that bets against the metal, ProShares UltraShort Silver (NYSEArca: ZSL), was also active.

Other ETFs that go long silver include ETFS Physical Silver (NYSEArca: SIVR) and PowerShares DB Silver (NYSEArca: DBS).

“This was the second margin increase in the span of one week,” said a U.S.-based fund manager, according to FastMarkets. Comex operator CME Group “is clearly concerned about the recent violent price movements and they’re taking steps to curb speculation.”

iShares Silver Trust

Full disclosure: Tom Lydon’s clients own SLV.

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