Wednesday, February 29, 2012

ETF Spotlight

Symbol ---- DZZ   Power Shares DB Gold Double Short

This ETF goes up when the price of gold goes down.  The process is called shorting the market. When you short the market, you believe the price will go down soon, and you want to profit from it's downward spiral. The great thing about this ETF is that you can short gold without doing all the hard work of going into the futures market yourself, and risking tens of thousands of dollars opening up a margin account. Not only those benefits, but this ETF seeks to mimic twice the inverse of gold commodity futures. You have the opportunity to make 2x the money that you would buying futures on your own.

Today's Price ---- 4.49    + 0.4750   Up because the price of Gold was down  1,693.30  - 95.10

I like the price as well. It only takes 449.00 to buy 100 shares.  That upswing of .4750 translates into 47.50 or

11.83%   Let me say it again  11.83% 

It's been a long, long, long, long time since you could get anywhere close to that at any bank.

 Probably not since Ronald Regan was in the white house in the 1980's

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