Silver exchange traded products, namely the iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR), have strengthened in recent weeks with SLV and SIVR gaining 2% apiece over the past three months. However, some commodities market observers are expressing concerns about the integrity of silver’s recent jump.

Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction. The metal also maintained its momentum as the Federal Reserve lowered its interest rate outlook to only one or two hikes this year from a previously expected four rate hikes.

Options market data signal an interesting, potentially bearish scenario in the works for silver ETFs.

“Given that SLV’s put-call ratio is back toward historical lows, the contrarian indicator is exhibiting a “sell” signal here. Note that this isn’t a guarantee of a pullback, but is indicative that the probability of a short-term selloff is at a heightened level right now,” reports ETF Daily News.

Conversely, some metals market observer see silver supply falling coupled with rising prices.

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