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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (117852)	2/17/2009 12:10:45 AM
From: axial	Respond to of 206121

"but experience tells me HGU follows the stocks.. not the metal" At times, HGU follows neither. Horizons specifically states that HGU rolls futures over a three-day period, on a percentage basis, every month. That's a rule, not an option, and that's exactly the same strategy they use with crude. There seems to be universal agreement (now) that contango has an effect on leveraged crude ETFs. Like others here, I'm just a student of the subject. But to me, logic dictates that leveraged commodity ETFs using identical strategies will ALL be affected by contango and backwardation. Sorry, no other conclusion seems logical. Understood that you feel differently but I'm not convinced. Could be wrong, though. That's happened before, many times! Cheers, Jim