TJ,
Your words of caution have echoed quite familiarly in the past, and served everyone who listened to you, methinks, very well.
Still, I too am thoroughly baffled as to why the USD is showing surprising resilience against other fundamentally conservatively managed currencies (CHF, EUR, GBP, JPY) and feel that perhaps, it could be due to the PRC (and quite possibly Japan, South Korea too) single-handedly propping it up through a constant mopping up operation of the USD every time it sinks below 90 on the USD trade weighted index. I somehow doubt that the rich/permanently trade surplus reporting Middle East countries are still buying/keeping USDs, and suspect Russia, Euroland countries, Canada, Australia, hedge funds, Bill Gates, Warren Buffet etc are all getting rid of their surplus USDs at the first opportunity.
Another aspect that baffles me is how this oil ETF is supposed to work, i.e. where are the market makers going to store the physical oil for all the ETF units that are going to be bought. Surely, the storage costs are a lot higher than the minimal figure costed into the GLD ETF.
Any views,
Selva |
