Silver exchange traded funds declined Wednesday with base metals such as copper on Eurozone debt fears and a rising U.S. dollar.
The iShares Silver Trust (NYSEArca: SLV) was down nearly 4% in midday trading.
Silver ETFs have been extremely volatile in 2011 on economic uncertainty, expectations of further currency debasement and changes in margin requirements.
The metal topped out at about $50 an ounce in the spring and has suffered two sharp sell-offs already in 2011. The recent bounce stalled at around $35 an ounce, while silver prices fell below $32 on Wednesday.
In currency markets, PowerShares DB US Dollar Index Bullish (NYSEArca: UUP) rallied more than 1% on Wednesday as global equities dropped on signs Europe’s debt crisis worsening. Silver was also under pressure following weak manufacturing data from China.
Leveraged ETFs that bet against silver were among the largest percentage gainers on Wednesday.
VelocityShares 3x Inverse Silver ETN (NYSEArca: DSLV) jumped 12% and ProShares UltraShort Silver (NYSEArca: ZSL) added 8%.