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<p>[QUOTE=&quot;Juan Blanco, post: 1622739, member: 41665&quot;]It&#039;ll never happen, period. Little Guys needn&#039;t worry about this.</p><p><br /></p><p><br /></p><p>My clients -- who had socked away HUGE gains on Faber&#039;s 3/6/09 call, buying bullion with proceeds -- were very <i>very </i>happy to reduce/mitigate &#039;nominal PM losses&#039; in subsequent volatility by trading the inverse ETNs. Of course, no REAL losses incurred, since the bullion is still held - but the OPTION TO HEDGE is a deal-maker for some investors. And YES they picked up abit of alpha there (Paper gains) but no, not on every trade. Prudence &amp; patience there, to be sure.</p><p><br /></p><p>To hedge or not to hedge? As Fed Hickey pointed out in last week&#039;s <i>Barron&#039;s</i> : <a href="http://online.barrons.com/article/SB50001424052748704843204578245523623098286.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://online.barrons.com/article/SB50001424052748704843204578245523623098286.html" rel="nofollow">http://online.barrons.com/article/SB50001424052748704843204578245523623098286.html</a></p><p><b>&gt;&gt;Hickey: It has been great for 12 years, but it doesn&#039;t always go up.</b> In the last great gold bull market, gold rose from $100 an ounce in 1970 to $800 in 1980. But it fell 46% in 1975-76. Anyone who left the market then missed the best part of the rally -- a subsequent rise of 600%. <b>In the latest 12-year period,<u> there have been five corrections in the gold price, ranging between 15% and 30%.</u> </b>The latest correction was 19%, and gold has bounced off its recent lows already.&lt;&lt;</p><p><br /></p><p>There WILL be more -20% declines, predictably. Why sweat those anyway? Paper is for investing... so <i>use </i>it that way lol The cost basis at Fido is like $9. a trade, a pittance, if you&#039;ve already got a retail brokerage acct.&nbsp; It ain&#039;t rocket-science![/QUOTE]</p><p><br /></p>

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