| For those familiar with gold investing, you may | | | | risk and return associated with the price gyrations |
| have heard of short gold ETF funds. In today's | | | | of gold. |
| world of international investments and financial | | | | There are several reasons an investor would be |
| engineering, it is possible to bet on or against just | | | | interested in purchasing a gold short ETF. If a |
| about anything, including gold. Shorting securities, | | | | speculator thought that gold was overpriced and |
| or betting that their price will decrease, is an | | | | due for a correction, they could buy a short gold |
| increasingly popular investment that is used both | | | | ETF and earn a profit if their forecasting was |
| for speculation and to hedge overall portfolios. | | | | indeed correct. Another popular technique involves |
| With the proliferation of exchange traded funds, | | | | an investor with large gold positions in their |
| or ETFs, it is not surprising that a large number of | | | | portfolio who may want to purchase a short ETF |
| short ETFs have been launched as well. An ETF is | | | | to protect their long position over the long run. |
| a security that trades like a stock on an | | | | The main benefit of an gold inverse ETF fund is |
| exchange and tracks the movement of an | | | | that it gives an individual, and sometimes even |
| underlying index of commodity. An ETF can track | | | | institutional investors, the opportunity to bet |
| the price movements of almost any financial | | | | against gold when it might otherwise have been |
| investment and today there are hundreds of | | | | overly costly to do so. By keeping transaction |
| ETFs that mirror the movements of everything | | | | costs to a minimum and hiring professionals to |
| from stock indexes to the price gold. A short gold | | | | manage the funds, ETFs are able to offer an |
| ETF is simply one that invests in numerous | | | | efficient, inexpensive way to gain exposure to |
| derivatives that enable it to profit when the spot | | | | falling gold prices. Like other short ETFs, short gold |
| price of gold declines. There are some short gold | | | | ETFs also increase the liquidity in the marketplace, |
| ETFs that even use leverage to increase both the | | | | a development that is good for everyone. |