The largest ETF that invests in silver bullion fell to its lowest level since November 2010 on speculation Thursday the European summit wouldn’t produce more easing measures.

The $8.5 billion iShares Silver Trust (NYSEArca: SLV) was down nearly 3% at last check. The metal ETF holds 9,876 metric tons of silver, according to sponsor BlackRock.

“Gold and silver extended their earlier losses Thursday, as traders bet that a closely watched meeting of European leaders this week wouldn’t result in new liquidity measures that could increase demand for an inflation hedge,” Dow Jones Newswires reported.

European leaders are scheduled to meet Thursday and Friday to discuss potential measures to fight the debt crisis.

Silver ETFs fell last week after the Federal Reserve disappointed bullish traders who were looking for further quantitative easing from the central bank. [Silver ETFs Fall 6% on Week]

“It’s been the central bank liquidity measures that have been one of the major legs of support for the gold market,” said Dave Meger, director of metals trading with Vision Financial Markets, in the Dow Jones report. “As you undermine one of those legs, it gets a bit wobbly.”

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