The ProShares Ultra Silver attempts to deliver twice the daily performance of silver bullion, and that amplification just turned catastrophic for holders who rode the metal's historic rally into late January. ...

Group 1: Market Changes and Risk Controls - The Chicago Mercantile Exchange (CME) has implemented tighter risk controls in the precious metals market by shifting margin requirements from fixed dollar amounts to a percentage of contract value [1][2] - The new system automatically adjusts margin requirements based on the metal's price, increasing the cash traders must post as prices rise, thereby reducing effective leverage [2] Group 2: Silver Market Dynamics - Silver has seen a significant price surge, with spot silver rising over 24% in the first fourteen days of 2026, reaching above $90/oz, following a 148% gain in 2025 [3] - The increase in silver prices is driven by geopolitical tensions, tightening inventories, and expectations of interest rate cuts by the Federal Reserve [3][5] - A persistent structural deficit and inelastic supply are fundamental drivers of the silver market, with 70% to 80% of global silver output produced as a byproduct of other metals [4] Group 3: Price Discrepancies and Historical Context - Despite the recent rally, silver prices remain below historical inflation-adjusted levels, with the 1980 peak of $50/oz equating to at least $150/oz today [6] - There is a notable disconnect between paper prices and physical availability, as spot silver reached $90/oz while physical coins are being sold for no less than $120/oz in markets like Dubai [7] - The Sprott Silver Miners & Physical Silver ETF (NASDAQ:SLVR) has increased by 11.47% year-to-date, reflecting positive market sentiment [7]

Group 1: Silver Market Dynamics - Silver prices surpassed $50 an ounce for the first time, reaching above $51 during trading before dipping below $49 [1] - The last time silver traded around these levels was January 1980, indicating significant historical price movement [1] - A supply shortage in the spot silver market has contributed to a 69% rise in silver prices this year [10] Group 2: Gold Market Trends - Spot gold prices fell 2% after crossing $4,000 for the first time, as investors booked profits following a ceasefire in the Israel-Hamas war [2][5] - The SPDR Gold ETF Trust has advanced nearly 50% this year, while smaller mining ETFs have seen gains over 740% [9] - Gold's rally has been driven by geopolitical tensions, central bank demand, rising ETF inflows, and economic uncertainty [8] Group 3: Market Sentiment and Future Outlook - Speculators are taking profits in gold and silver as geopolitical tensions ease, but the primary drivers for the rally, such as reserve diversification and growing global sovereign debt, remain valid [5] - Anticipation of further interest rate cuts by the Federal Reserve is influencing market dynamics, despite rising inflation concerns [15][16]