The largest exchange traded fund for silver saw the highest trading volume since September in Wednesday’s melt-down in precious metals.
The $11.7 billion iShares Silver Trust (NYSEArca: SLV) traded more than 91 million shares, versus a three-month daily average of about 20 million. [Gold, Silver ETFs Tumble on Bernanke]
The fund lost 6.4% on Wednesday as silver prices dropped below $34 an ounce at one point. [ETFs and the Gold/Silver Ratio]
Traders will be watching to see if the silver ETF can hold the 200-day simple moving average, a technical indicator.
The fund is still up 24.5% year to date including Wednesday’s pullback with silver enjoying the best performance in the commodity complex. Other silver ETFs include PowerShares DB Silver Fund (NYSEArca: DBS) and ETFS Physical Silver Shares (NYSEArca: SIVR).