Net long positions in silver futures contracts slid 30% in the week ended Aug. 19 while professional traders have increased bearish wagers against the white metal in four straight weeks, according to Bloomberg.
Making matters worse for silver bulls is that the metal is betraying typically favorable seasonality. Over the past 20 years, the metal has posted positive returns in July 65% of the time while rising in 60% of Augusts, according to EquityClock.
ProShares UltraShort Silver
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.