Investors have previously turned to silver exchange traded funds as an asset with a safe store of value and as a metal with wide industrial application in a growing economy. However, the precious metal is now suffering from a bad turn on both fronts.
“Commodities tend to trade inversely to the dollar, since as the greenback increases in value, it takes fewer dollars to buy the same amount of a fixed asset. The U.S. currency’s recent strength has contributed to commodities’ weakness,” adds CNBC.
Traders with a strong conviction that silver prices will continue to dip can utilize inverse silver ETF options to play the fall. More aggressive traders can take a look at the VelocityShares 3x Inverse Silver ETN (NYSEArca: DSLV), which takes the -300% performance of silver, and the ProShares UltraShort Silver (NYSEArca: ZSL), which takes the -200% performance of silver price movements.
iShares Silver Trust
