DB Gold Double Short ETN (DZZ)
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DZZ Forum Topics
- All Comments on DZZ
- General Discussion on DZZ
- Is the 'Commodity Super Cycle' Dead or Alive? [view article]
- Gold (and Gartman) Haunting Some Investors [view article]
- DZZ: How To Short Gold by Going Long [view article]
- Friday Outlook: Commodities, Global Markets [view article]
- Thursday Outlook: Commodities, Emerging Markets [view article]
- Commodity ETFs and ETNs [view article]
- Tuesday Outlook: Commodities, Emerging Markets [view article]
- The Case Against Leveraged ETFs [view article]
- What's Behind the Slide in Oil and Commodities? [view article]
- Buying Gold for Oil Like George Soros [view article]
- Managing Duration for Commodity Funds: Which Strategy Is Best? [view article]
- Leveraged Gold ETFs: The End of Gold Stocks [view article]
loading ...Recent DZZ Articles
- Is the 'Commodity Super Cycle' Dead or Alive?
- DZZ: How To Short Gold by Going Long
- Friday Outlook: Commodities, Global Markets
- Thursday Outlook: Commodities, Emerging Markets
- Tuesday Outlook: Commodities, Emerging Markets
- Gold (and Gartman) Haunting Some Investors
- What's Behind the Slide in Oil and Commodities?
- Buying Gold for Oil Like George Soros
- Managing Duration for Commodity Funds: Which Strategy Is Best?
- PowerShares DB Gold Offers a Sophisticated Strategy to Small Investors
- Full List of Articles »
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Is the 'Commodity Super Cycle' Dead or Alive? [view article]
Paul and Shark,Gold will remain a currency and survive as a storehouse of value as it has done for centuries. If anything - it is the U.S. fiat currency that will not.
IMHO Reply
ragmatist
Is the 'Commodity Super Cycle' Dead or Alive? [view article]
God deliver us from chartists! They bring truth to the adage "that figures don't lie but liars sure can figure". Speculation is the heart and soul of the markets. Super speculators have always been active and will always be active. I suggest the chartists pack up their drawing tools and get a real job. We have all the bullcrap we need coming out of Washington and the various state capitals. ReplyIs the 'Commodity Super Cycle' Dead or Alive? [view article]
Gold is atPETROLE / DEVISES / TAUX
EUR/USD 1.4867 $ +0.81%
Euribor 1 an 5.306 % -0.15%
Gold Index 834.75 +2.77%
Pétrole (New York) 121.57 USD +5.20%
Reply
Is the 'Commodity Super Cycle' Dead or Alive? [view article]
Excellent. I appreciate the thought and effort that went into this-some of it eyebrow raising. Thanks. ReplyIs the 'Commodity Super Cycle' Dead or Alive? [view article]
The commodity super cycle is dead!Long live the commodity super cycle! Reply
Is the 'Commodity Super Cycle' Dead or Alive? [view article]
Very comprehensive analysis from different possible angles. But, what is the answer to your article's question? ReplyGold (and Gartman) Haunting Some Investors [view article]
Brad, you don't need delta when AT THE MONEY. You receive one dollar of insurance for each dollar move against the underlying position. The cost of that insurance is the time value and it is directly related to volatility. We can ignore the greeks completely as they all disappear at expiration of the option, which is the time period we are seeking to insure. In other words, you wouldn't pay more in time premium than you would expect the underlying could move between now and expiration of the option.I understand this wasn't the point of your article and I did read Hedging Gold's Volatility. I also understand how one could try to strip out alpha using such a method. But there are problems with the method as presented. I'll pick just three. First, you chose a "convenient" timeframe where DZZ was generating returns, not dragging on them. This made the return and risk-to-reward of the hedged portfolio artificially high compared to real world results. Second, I don't see where you took into account the fact that it took about $20,000 to acquire the hedge. In other words, $20,000 Hecla with a $20,000 DZZ hedge should be compared to $40,000 Hecla. I presume this would make the hedged returns when gold is climbing (which is most of the time in a bull market) even more pathetic. Third, you've created alpha but that doesn't mean it will always be positive. That's because you don't have ANY beta in the hedged portfolio at all. So, when beta is large and positive, you are going to have a large and negative alpha. And that would buy you exactly one calendar quarter as head of a hedge fund. Reply
DZZ: How To Short Gold by Going Long [view article]
Naked short traders should be forbidden - in all markets. They make a lottery of legitimate stock trading. Hopefully they will be caught naked when the tide goes out. ReplyDZZ: How To Short Gold by Going Long [view article]
You sure pegged what happened to me philman. 3 words will aptly describe how I lost my shirt: 975 August calls. ReplyDZZ: How To Short Gold by Going Long [view article]
So like the financial crisis caused by selling naked shorts, Gold is in the same situation? In the financial crisis a short run on banks reduced the asset value of banks' in house stock holdings at the same time that their mortgage backed securities were loosing asset value. Thus marked to market they would face insolvency. Naked short selling helped to create a panic situation allowing the shorts to cover lower during the panic selloff. Now these gold shorting banks are attempting to induce a panic sell off to cover their shorts lower by buying the panic dumping of the paper gold as the price goes lower.It would seem to me that the real producers of gold would be aware of this shortage and be reluctant to hedge, selling real gold contracts, at these lower prices. It would seem the banks would have to buy the paper contracts to cover their butts and drive prices up as demand returns to the paper gold arena to the point at which the real gold producers are willing to sell real gold futures. I don't see how they can possibly force gold lower with heavy real demand. It would require real gold producers willing to sell at lower prices than what demand is dictating. I understand how the paper short sellers created the paper gold over load, allowed to occur in the same way that naked shorting has been allowed in stocks. But what I don't undertstand is how they are going to escape the demand situation. The stock situation created a panic sell off allowing the naked short sellers to cover. There was no real demand in that situation. But with gold, there is real demand. I don't understand how they can escape real demand. Won't they have to pay the piper? Reply
DZZ: How To Short Gold by Going Long [view article]
Educate them PHILMAN, I have given up on the CLH's out there! ReplyDZZ: How To Short Gold by Going Long [view article]
The last place I'd want to be, right now, is shorting gold or silver. Soon, big bank short futures position writers, will be finished with this particular downward manipulation. When that finally happens, the price pressure will ease, and prices will start rising.They may soar, if what Kenneth Rogoff, former chief economist of the IMF says (that a huge US based bank is about to fail) ends up coming true. But, even if that were not the case, one never knows when gold is going up, or going down.
It is utter foolishness to own any type of leveraged gold investment. Gold should be purchased with cash ONLY, and kept for the long term. If you buy on margin, or using one of these margined instruments, you will surely lose your shirt. Gold and silver are the two most carefully manipulated commodities in the world.
Most of us are not privy to what is said inside the smoke filled rooms. Anyone who is heavily leveraged or margined is going to get creamed. Check out this article, which goes into great detail about the way that manipulators play the precious metals game.
seekingalpha.com/artic... Reply
ssen
DZZ: How To Short Gold by Going Long [view article]
CLH,what bull you was on Gold,buying one oz American Eagle coin,or buying futures on Gold?
Or maybe gold/silver penny stocks?Those are down on average 70%. Reply
DZZ: How To Short Gold by Going Long [view article]
I love DZZ. I went in at the crossover. Its been all up so far. Looking for a correction, but I believe gold is entering a bear after 8 year bull (which I was long in). These ETNs are the greatest. ReplyFredrickson
Friday Outlook: Commodities, Global Markets [view article]
Larry Kudlow is that you? I thought you were on vacation? Must be bored and ghost writing as "Gabe Borenstein" on Seeking Alpha's Fry Guy Board. I respect different opinions, but for some reason I find yours repulsive, as in, it sounds like the government spin put upon the American people to make them believe that everything is "fine", "okay" or "alright." When this fantasy ends and the reality becomes more apparent everyone can start making more informed decisions, but due to government "shenanigans"... and a fear of "truthiness" this may take longer then anyone expects. I agree with David, "good LUCK to you." Reply