“The combination of a strong dollar and rising real rates is also having a predictable effect on precious metals prices,” Russ Koesterich, Global Chief Investment Strategist and Head of Model Portfolio & Solutions Business at BlackRock, said. “The simultaneous rise in real and nominal rates reflects the fact that inflation is contained, and that puts downward pressure on the price of precious metals (since they are viewed as an inflation hedge, but provide no income, they consequently become less attractive).”
Consequently, those who have 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. Over the past month, DSLV surged 29.2% and ZSL jumped 19.5%.
iShares Silver Trust
For more information on the silver market, visit our silver category.
Max Chen contributed to this article.