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Gold/Mining/Energy : Gold & Gold Stock Analysis

GLD 423.31

-0.6%

Jan 15 4:00 PM EST

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To: Condor who wrote (7980)	8/24/2007 8:32:16 AM
From: Claude Cormier	Read Replies (1) of 29622

I see two sets of valid hedges. Bear market funds either on gold indexes or US equities... the like of HGD.TO and the many Proshares bear funds in the US (QQQ, SP500, Russell 2000, Basic Materials, Financials...). But my favorites are puts options on your favorite gold indexes or stock. (HUI, GDX, XGD or whatever). Most of the time one will lose on options. But when the worst happen, they play there role. I never tried selling naked calls, but it might be another valid alternative. One problem: liquidity is not good at all with options, so the bear funds are probably he best wy to go for average investor. But I don't know if they are safe as I never examined the balance sheet of the trust behind those funds. I guess that even if I did, I might not have found the answer.

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