ProShares Ultra Silver drops 16% as silver and real yields hit highs, pressuring leveraged silver ETFs.
ProShares Ultra Silver (AGQ), a 2x leveraged silver ETF, fell 16.24% in one day due to a sharp 8.08% drop in silver prices and rising real yields after a strong U.S. jobs report. The fund's daily reset magnifies losses, causing it to drop more than twice the silver price decline. Real yields on 10-year TIPS hitting cycle highs increase the opportunity cost of holding non-yielding silver, while a stronger dollar and hawkish Fed stance add pressure. For silver to stabilize, real yields need to fall below 2%, the dollar must weaken, and industrial demand should remain strong. Until then, leveraged silver ETFs like AGQ face continued volatility and downside risk.
ProShares Ultra Silver (AGQ), a 2x leveraged silver ETF, fell 16.24% in one day due to a sharp 8.08% drop in silver prices and rising real yields after a strong U.S. jobs report. The fund's daily reset magnifies losses, causing it to drop more than twice the silver price decline. Real yields on 10-year TIPS hitting cycle highs increase the opportunity cost of holding non-yielding silver, while a stronger dollar and hawkish Fed stance add pressure. For silver to stabilize, real yields need to fall below 2%, the dollar must weaken, and industrial demand should remain strong. Until then, leveraged silver ETFs like AGQ face continued volatility and downside risk.
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