ETF Spotlight: AGQ Surges as Silver Hits 13-Year High

Silver is back in the spotlight. As the price of the metal broke through a key resistance level at $35.40, traders piled into silver-related ETFs, with the ProShares Ultra Silver ETF (AGQ) standing out. 

The 2x leveraged fund has surged on the breakout, as momentum builds for silver to play catch-up to gold, which has been setting records of its own in 2025. In addition to technical enthusiasm, silver is drawing renewed investor interest as a lower-priced alternative to gold and as a stagflation play, with inflation remaining stubborn and economic growth showing signs of fatigue. 

Against this uncertain macro backdrop, precious metals ETFs have regained popularity as hedges against both market volatility and policy missteps.

The spot price of silver climbed as much as 3.5% Thursday, pushing the 2x leveraged AGQ up 7%.

AGQ: A Leveraged Silver Play

AGQ is a 2x leveraged exchange-traded fund that aims to deliver twice the daily return of silver prices, as measured by the Bloomberg Silver Subindex. It’s designed for traders looking to amplify short-term moves in silver and is often used to capitalize on bullish momentum or hedge other exposures in a portfolio.

Pros of AGQ

• Offers amplified gains when silver prices rise
• Highly liquid and responsive to short-term technical setups
• Provides exposure without the need to trade futures contracts directly

Cons of AGQ

• Amplifies losses as well as gains, making it risky in choppy or declining markets
• Not meant for long-term holding, as daily rebalancing can erode returns over time due to compounding effects
• Difficult to manage during rapid price swings or periods of high volatility

Can Silver Keep Climbing?

Silver’s breakout above $35.40 has opened the door to higher technical targets, especially if stagflation conditions persist and global demand for industrial metals rebounds. Unlike gold, silver has dual appeal as both a precious and industrial metal, which means it can benefit from both economic optimism and safe-haven flows. With gold prices at all-time highs and investors wary of overpaying, silver has emerged as an attractive alternative for value-minded commodity investors.

Still, it’s important to note that precious metals markets can turn quickly, especially when driven by speculation and macro shifts like Federal Reserve policy, inflation surprises or geopolitical developments. Leveraged funds like AGQ are tools for experienced traders, not buy-and-hold investors, and they require careful monitoring and disciplined risk management.

AGQ, Silver: Caution is Warranted

As silver regains momentum, ETFs like AGQ are becoming key vehicles for traders aiming to ride the wave of renewed interest in precious metals. While silver may have room to run—especially if inflation lingers and economic fears grow—investors should remain cautious, particularly with leveraged ETFs that can swing wildly. For those who understand the risks, silver and its ETFs offer a compelling alternative in today’s uncertain investing landscape.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in ETFs involves risks, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.

At the time of publication, Kent Thune did not hold any of the aforementioned securities.