Wt Gold 2x Discussion Threads

[orcslayer] 19/9/2008 13:05

Relieved to see this trading again, but the spread is absurdly wide (9%) in comparison to the physical ETF PHAU. Should narrow over time, I hope.

[cutyourlosses] 19/9/2008 12:22

Back on line, spread will be wide, so you are giving money away taking the offer that is there currently. Better to wait for spreads to lessen, or ETFSecurities may even let us sell directly through them after time. Either way gold is going up again, when the furore over short selling is over.

[cutyourlosses] 18/9/2008 11:18

Ok, so what's the guessing for what will happen when this comes back on line again? It should be up by around 10p or so, but will the people who want to get out of it depress the price? Will the spread be ridiculous, or will it just carry on where it left off?

[malkie] 17/9/2008 14:18

apparantly this etf is backed by AIG. thats why its suspended today.

[malkie] 16/9/2008 13:42

its x2 the movement in gold. however no one seems to want to deal thats why the spread is so wide.

I was going to nab a few yesterday, but i dont think its going to be so easy to get in and out when you want to.

sticking to some ishares and my gold & silver juniors (AAU, OK,) for the potential leverage.

LBUL looks a bit too dodgy to me. On days like these you can see how it really trades.

[orcslayer] 16/9/2008 12:38

How is it possible for this ETF to be showing as -30% today, with a spread of 15-24, when the price of gold itself is almost unchanged? Isn't this meant to represent the movements of the price of gold itself?

[cutyourlosses] 16/9/2008 10:52

Ok, thanks.

[maximoney1] 16/9/2008 08:41

cutyourlosses....can i suggest this thread



There is a lot of really good discussion on gold with both bears and bulls arguing sensibly, far more than i could contribute.

[cutyourlosses] 16/9/2008 01:47

From Bloomberg, maybe not so good for gold as we might imagine:

"Gold, Silver Gain as Investors Seek Haven From Market Turmoil" - the usual, panic leading to gold buying, but later in the article:

"`Rally to Be Sold'

Gold's gains were limited as investors sold the metal to cover losses in other markets, Kaplan said.

``This is a rally to be sold,'' Kaplan said. ``People are going to get out of gold to meet margin calls elsewhere.''

Hedge-funds and other large speculators, who helped drive commodity prices to records this, year may need to sell to raise cash, said Ron Goodis, a futures trading director at Equidex Brokerage Group Inc. in Closter, New Jersey.

``My inclination is to short gold here,'' Goodis said. ``You've got this liquidation mode setting in. You've got nervousness across all markets and money has to come out. People aren't convinced gold is the place to be. Treasuries are the place to be, for now.'' "

Full article:


So it looks like the liquidity crisis is making the gold security investors liquidate their assets to provide more cash. This seems short sighted, as cash is going to be hit, but other articles also say inflation is not a problem anymore, due to the world liquidity problem, so maybe cash appears to be king for now.

[malkie] 13/6/2008 22:36

BBC Money Program Gold Fever