1 reply to this topic

[Islander]

ETNs are not ETFs or mutual funds. These two short gold notes reflecting inverse gold prices are not warranted for redemption by the issuer (volume is restricted), nor are they warranted to track any indexs within set ranges of variances. Finally, these are unsecured notes of the issuer and as such they come in at the bottom of the claimants in a bankruptcy. These days you need to know before you buy. I was thinking of shorting gold this morning and read the prospectus, and backed off to use other funds. I have owned a few ETNs and never been bitten, and my dog has not bitten me recently either, but he still has teeth! Best, Islander

Edited by Islander, 20 March 2008 - 02:49 PM.

[outsider]

Yes, I use these as short term trading vehicles only. As with most speculative vehicles, liquidity has been good when their prices are up, maybe not when volatility is high on way down... Better liquidity than puts and calls which I was using before. Even some money markets funds were quoted below par awhile back, so risk is everywhere... Sold DZZ today even though expect to be leaving money on table. In a true crisis, even physical metal will be useless is my view. Either access to storage will be difficult or it will be stolen at gunpoint. If you try to buy a loaf of bread with gold coin or even junk silver at the corner store, they'll just laugh at you! ---Out