How (DBS) (SIVR) (ZSL) (AGQ) (SLV) Performed as Silver Continues to Fall

Shares PowerShares DB Silver (NYSE:DBS), Physical Silver (NYSE:SIVR), ProShares Ultra Silver (NYSE:AGQ) and iShares Silver Trust (NYSE:SLV) were all plunging on Tuesday, along with the price of silver, while ProShares UltraShort Silver (NYSE:ZSL), as expected, continues to climb.

Silver plunged another $3.49 Tuesday to settle at $42.576 per troy ounce on the Comex division of the Nymex. In after hours trading the price almost dropped below $40 an ounce.

Much of this has been the result of he decision by the CME Group to raise margin requirements by 11.6 percent, starting at the close of market on Tuesday.

To buy a 5,000 ounce contract, silver traders will now have to put up $16,200.

Leverage traders cut their silver positions over the last couple of days, driving the price of silver down. Expectations are silver could bottom out as about $38 if there's more leverage abandoning the market.

Other than some speculation, other reasons for the boost in silver prices include the collapsing U.S. dollar, tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake. India also raised its interest rates unexpectedly on Tuesday, putting some downward pressure on gold and silver as well.

ProShares UltraShort Silver (ZSL) closed Tuesday at $17.51, gaining $1.61, or 10.14 percent. ProShares Ultra Silver closed at $264.97, dropping $31.53, or 10.63 percent.