ProShares Ultra Silver (AGQ) saw a sharp intraday decline of 10.16% on Friday, as the silver market faced significant disruptions following the collapse of a major silver merchant in Shenzhen.
The plunge was triggered by the failure of Hechengxing, a Shuibei-based silver shop, to deliver over 200 million yuan worth of silver plate materials, which rattled market confidence. Additionally, retail investors have been pouring record amounts into silver ETFs, creating a crowded trade and increasing volatility. Silver prices, which recently broke through the $92 per ounce mark, experienced a sharp correction, further pressuring AGQ, a leveraged ETF tied to silver performance.
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