Exchange traded funds tracking silver jumped in premarket trading Monday and were set to open the week higher after dropping 26% in last week’s crash.
The iShares Silver Trust (NYSEArca: SLV), the largest silver ETF by assets, rose 6% before the bell. Other ETFs that follow silver prices include ETFS Physical Silver (NYSEArca: SIVR) and PowerShares DB Silver (NYSEArca: DBS).
Silver ETFs were hammered last week by higher margin requirements and a bounce in the U.S. dollar.
“As the dust settles on the monster silver correction, funds appear to be reassessing that the fundamentals still look good,” broker ANZ said, according to FastMarkets.
“The gains in both (gold and silver) markets – very popular with the investment community — also likely reflect the propensity to buy-on-the-dip for a market that has a short-term memory for negative shocks,” it added, according to the report.