ProShares Ultra Silver (AGQ) plummeted 13.88% during Wednesday's trading session, reflecting extreme volatility in the silver market. The leveraged ETF, which aims to deliver twice the daily performance of silver, was among the hardest-hit assets as silver prices tumbled.
The sharp decline followed a 5% drop in spot silver prices to $72.57/oz and CME Group's decision to increase margin requirements for silver futures. This forced traders to allocate more capital to maintain positions, exacerbating losses for leveraged products like AGQ. Earlier in the week, silver futures had slid 8.7% due to similar margin hikes, reminiscent of a 2021 sell-off.
Silver's 160% surge in 2025—its best annual performance since 1979—had attracted speculative trading, but the recent margin adjustments have intensified downside risks for leveraged ETFs.
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