Risk-tolerant traders looking to mimic the pros’ bearish silver bets can consider the ProShares UltraShort Silver ETF (NYSEArca: ZSL) and the VelocityShares 3x Inverse Silver ETN (NYSEArca: DSLV), which have been punished by silver’s resurgence this year.
Strident silver bulls can look to the ProShares Ultra Silver ETF (NYSEArca: AGQ) and the VelocityShares 3x Long Silver ETN (NYSEArca: USLV) for outsized profits should silver continue soaring. AGQ is double-leveraged while USLV is triple-leveraged.
“The positives that silver bulls have going for them are A) the trend is on their side, B) the metal has continued to be firm in the face of the bearish silver futures COT positioning, and C) a market that does not do what it’s “supposed to” is likely telling us that its current trend is strong enough to overwhelm these ancillary factors for the moment. However, with the COT positioning at its most extreme ever, the potential headwind for silver upon a turn lower could be considerable should the speculators race to unwind their record long position,” adds See It Market.
For more information on the oil market, visit our silver category.
iShares Silver Trust ETF