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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: silvertoad who wrote (109818)	5/10/2011 7:43:11 AM
From: prometheus1976	Respond to of 110194

Amen and so true ! Regards,p1976

To: silvertoad who wrote (109818)	5/10/2011 12:05:29 PM
From: the navigator	Respond to of 110194

if he wants leverage there are much safer ways to achieve it. hi silvertoad and thank you for your observation. i understand what you are saying, but i don't know enough about leverage in the market to even comment knowledgeably, so i just buy physical and pslv in the ira and hold on. from reading articles like the following from by Catherine Austin Fitts and Carolyn Betts, GLD and SLV, Disclosure in the Precious Metals Puzzle Palace, i can deduce that etf's are not where i want my wealth to be. solari.com my brother is listening to "advisors" who first advised him to buy spxu last summer in the $30's (we all know how that turned out). he won't listen to me, because i'm not an expert. if i sound a little annoyed, i guess i am. i started buying physical in '06, to everyone's amusement in the family. about '08, i asked him if he'd considered buying any physical, and he brushed me off with a wave of his hand as if the very idea was ridiculous. now, of course (since late 2010), he's all on board with physical and the double etf's since he found an advisor who would take several thousand of his dollars to give him information that is virtually free on the internet. the good news is, he has now bought some physical so he has that protection. in fact, all in my immediate family are now buying physical and for that i'm grateful. edit- here's another real good reason to stay away from the etf's (unless you really know what you are doing).... As 88% Of SLV Shares Outstanding Trade Yesterday, The "Silver Put Buyer" Generates A 68,294,229,502,717.3% Annualized Return zerohedge.com

To: silvertoad who wrote (109818)	5/10/2011 1:22:46 PM
From: clochard	Read Replies (1) \| Respond to of 110194

and how is safe leverage done ?

To: silvertoad who wrote (109818)	5/11/2011 7:32:38 PM
From: the navigator	Respond to of 110194

the double etfs are trading vehicles only -- it's a big mistake to hold them for long periods, as the odds of losing big are very high. they do not deliver twice the price move over any length of time, just one day at a time. as you were saying... this article spells it out really well, imo. Double and Triple ETFs Decay Their Value Faster, By Design seekingalpha.com

To: silvertoad who wrote (109818)	7/6/2011 2:46:51 PM
From: jmiller099	Respond to of 110194

They're still better than 1x... 02/26/2010 DGP @ $27.28 RTQ right now: $48.4368 which is a gain of 77.23% Gold was about 1100 that day. 77% higher is $1947. Gold is now about $1530. Conclusion: It performs much closer to 2x than 1x over time. Risk: It is a paper holding and probably subject ot the first rounds of scrutiny of the admin's bias against gold. Further, I am unclear on how the new talk about limiting paper gold trading impacts their strategy to maintain a 2x gold exposure.