Silver Rout Was Worsened by ‘Destabilizing’ Leveraged ETF Spree, BIS Says

The worst silver sell-off in history at the end of January was accelerated by the growing footprint of retail investors in leveraged exchange-traded funds, according to the Bank for International Settlements.

The white metal collapsed as much as 36% on Jan. 30, its biggest one-day wipeout on record. The abrupt plunge, following a rapid surge of more than 50% in just a few weeks, points to the destabilizing role of retail flows that were amplified by forced sales from leveraged ETFs, the Basel-based institution said in its quarterly report on market developments.