ProShares Ultra Silver

AGQ

Market cap $1.17B

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Silver is poised to challenge its 1980 and 2011 highs, driven by persistent supply deficits and strong investment demand. The ProShares Ultra Silver ETF offers leveraged exposure, delivering outsized gains during silver rallies, but carries significant risk from time decay and volatility. AGQ's structure, using swaps and options, makes it suitable for short-term trading, not long-term holding, due to potential for rapid value erosion.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

In 2025, we have had to go back to the basics including diversification. One of the most well-known ways to diversify has been with commodities.

Silver presents a generational buying opportunity with a price target of $50/ounce, driven by a high gold-to-silver ratio and supply deficits. ProShares Ultra Silver ETF offers 2x daily returns, ideal for short-term traders looking to capitalize on silver's potential explosive gains. Sprott Physical Silver Trust provides a conservative, long-term investment in silver with lower fees and redeemable physical silver backing.

Tariffs announced by President Trump have caused panic in global markets, severely impacting equities, commodities, and metals, including a notable drop in Silver. Despite no tariffs on metals, Silver has been opportunistically slammed, likely due to diminishing bullion supply not tariff implications. I advocate for a leveraged Silver long through ProShares Ultra Silver ETF for speculative gains, expecting Silver to recover to $34 per ounce soon.

Silver prices surged to $35 per ounce in October 2024, the highest since 2012, continuing a bullish trend since the 2020 low of $11.74. Leveraged ETFs like ProShares Ultra Silver ETF require precise timing and risk management; they can amplify gains but also lead to significant losses if silver prices decline. Technical support for silver is at $27.375, with resistance at $35.53; breaking these levels could trigger significant market moves.

Silver's long-term outlook is bullish due to increasing industrial demand, especially from the photovoltaic and electric vehicle sectors, and constrained supply growth. The supply deficit in silver is exacerbated by limited production increases and falling global inventories, supporting higher future prices. Falling interest rates and a weaker dollar enhance silver's appeal as an investment, boosting demand and supporting price increases.

With uncertainties still present and the potential of an overreaction by the market, investing in commodity ETFs with exposure to metals like gold, copper, silver and uranium is a smart strategy to reduce portfolio volatility.

After a torrid risk-on run in the first quarter of 2024, markets cooled off a bit but ended the half still positive with mid-double-digit returns. Technology themes such as cryptocurrency and artificial intelligence helped propel markets higher.