Silver: Lost Luster

Less than a month and a half into 2010, one thing is abundantly clear and that is that metals, both industrial and precious, have lost a lot of the luster they gained during 2009.

Silver is no exception. Just look at the iShares Silver Trust (NYSE: SLV), the silver ETF of choice. The ETF is down 10% year-to-date and the technicals are far from appealing as the ETF currently rests below both its 50 and 200-day moving averages.

One might think that because the ETF is down 10% already, it might be too late to join the bearish party. Think again. The point-and-figure chart indicates a price objective of $10.50 and from Friday's close of $14.90, that's a nice move.

Don't want to short SLV or buy puts on it? Don't worry. The UltraShort Silver ProShares ETF (NYSE: ZSL) could come close to double while SLV falls.