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<p>[QUOTE=&quot;desertgem, post: 871560, member: 15199&quot;]Just to set a point straight, ML94539, did you buy a bear ETF like the DZZ that zuhara mentioned above, or did you short futures? </p><p><br /></p><p>The ETF funds such as GLD ( Long fund for gold), and DZZ for double bear (short) GOLD ETF, are like stock shares in that they trade on the US stock exchange and not as futures that have expiration dates. You can hold it as you like, it doesn&#039;t expire in a certain time. The DZZ intends to reflect twice the inverse of the Deutsche bank optimum gold fund ( like GLD), so when gold goes up , DZZ fund goes down twice as fast. If gold goes down, DZZ fund goes up twice as fast. If you own physically present gold, you can figure how much DZZ you would need to offset any decrease in the value of the gold you have. It is like buying insurance on the gold price. True, the value of the DZZ stock would decrease badly if gold went to $2000, but then if you sold the physical gold, you could hang on to DZZ as a hedge against it going down again. If it did, you could sell the DZZ and add it to the money you got from selling the gold, and buy even more at the lower price. </p><p><br /></p><p>Goldman Sachs holds about 2.4% of DZZ, most likely for the same reason[/QUOTE]</p><p><br /></p>

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