Recently, silver prices have seen repeated sharp swings, increasing the concerns of those investing in commodities. In the long term, silver prices are expected to rise on the back of the expansion of the artificial intelligence (AI) industry and growing solar power demand, but in the short term, there are suggestions of a possible correction due to price pressures.
Samsung Securities' "Samsung Inverse 2X Silver Futures ETN" targets these investors. It is based on silver futures listed on the New York Commodity Exchange (COMEX) and tracks twice the daily return of silver futures in the opposite direction. If the silver price falls 1% in a day, investors can expect about a 2% gain, while if the silver price rises 1%, they incur about a 2% loss.
Generally, commodity-related ETNs or ETFs mostly bet on a rise in the underlying commodity's price. By contrast, this product allows investors to take a position on a decline in silver prices. It can be a good option for investors who judge that silver has overheated in the short term or who put more weight on the possibility of a correction.
In particular, the silver market has recently become highly volatile. Shifts in global interest rate policy, industrial demand outlooks, and capital inflows into the commodities market are interacting to move prices sharply. The uptrend is continuing, but many investors are wary of a short-term correction.
This product can be used not only by investors seeking to trade on silver's direction but also by those looking to reduce risk in existing holdings. For example, if an investor holding a silver ETF, physical silver, or silver-related mining stocks is concerned about a short-term price drop, they can allocate part of their funds to an inverse product to lower risk.
In the commodities market lately, long-term and short-term outlooks often diverge. For investors who expect gains in the mid to long term but also see a chance of a short-term correction, this means it can be used as a tool to manage part of the risk rather than liquidating all holdings.
However, investors should note that inverse products are more volatile than ordinary ETFs. In particular, because this product tracks twice the daily return in the opposite direction, investment results can differ significantly from the underlying asset's returns if held long term. It is suited for short-term directional trades.
Samsung Securities offers a range of ETN products based on domestic and overseas stocks and bonds, commodities, and futures. According to Bloomberg, Samsung Securities ETNs recorded a cumulative trading value market share of 43.2% as of Feb. 20, 2026.