Seeking Alpha

PowerShares DB Gold Double Short ETN (DZZ)

  • Jan. 4, 2013, 10:38 AM
    The central thesis of gold bugs - that the Fed has lost control of the money supply - is now "in tatters," writes Dennis Gartman. The bulls only hope is a more dovish FOMC in 2013. It may be so at the margin, but not materially so, he says. Gold -1.8%, but - as they say - off the lows.
  • Jan. 4, 2013, 10:06 AM
    Interesting action in the precious metals had them continuing overnight a sharp fall begun after FOMC minutes suggested an earlier-than-expected end to Fed candy. This reversed with the 8:30 jobs report which showed still-sluggish employment growth. Gold has since bounced $21 to $1,651, though still off 1.4% on the session. Silver jumps $0.70, but remains -2.6%.
  • Dec. 31, 2012, 1:17 PM
    Gold is higher following the CME's Friday announcement of a cut in initial gold margins to $6.6K/contract from $7.425K, effective January 2. The maintenance margin will be a lowered to $6K from $6.75K. GLD +1.4%, though the bulk of the gain has come in the last hour.
    | 1 Comment
  • Dec. 19, 2012, 3:57 PM
    Morgan Stanley pulls the plug on John Paulson, its Wealth Management Division recommending clients sell 6 his funds after 2 years of horrid performance. Paulson is a major holder of GLD, and surely knew the liquidations were coming. Might this have something to do with the recent sell off in the metal, asks ZH.
  • Dec. 18, 2012, 2:10 PM
    Comex gold finished with sharp losses, -1.6% to $1,670.70/oz. and its lowest settlement since Aug. 30, and futures continue to spiral lower, down ~2% at $1,664. The usual reasons are cited - expectations of a fiscal cliff resolution, a drop in the U.S. current account deficit, rising homebuilder confidence - but gold has been losing out in a recent trend toward riskier assets.
  • Dec. 18, 2012, 7:43 AM
    Gold at $1,200 is among Saxo Bank's outrageous predictions for 2013. The reason: A strong economic recovery in the U.S. saps demand for the safe-haven investment. Eventually, central banks take advantage of the low price and buy (At the bottom? That would be a first).
  • Dec. 13, 2012, 11:09 AM
    Gold slipping in the wake of the Fed's even easier policies doesn't surprise Uri Landesman, who sees a dramatic correction ahead. The metal performs best as a "flight to quality," he argues, and the Fed moves take that bid away. His downside target next year is $1,400/oz.
  • Dec. 10, 2012, 8:58 AM
    Latin American central banks - of all places - have caught the gold bug, with Brazil, Paraguay, Argentina, and Colombia joining Mexico in adding to their reserves of the metal. Brazil seems to the best candidate for significant future purchases, with its gold stash at just 0.8% of reserves, and the central bank looking into diversification.
  • Dec. 7, 2012, 2:51 PM
    Add UBS to the recent flurry of bullish calls on gold, citing next week's FOMC meeting and year-end commodity index rebalancing; gold is likely to be bought this time around as opposed to being sold in previous years. And though the effect so far on gold prices has been a dud, there's still the possibility the fiscal cliff could yield good things.
    | Comment!
  • Dec. 6, 2012, 3:53 PM
    "Gold remains our preferred fundamental metal exposure heading into 2013," says Morgan Stanley, citing all the usual reasons. Keeping score, that's Morgan and Nomura bullish, Goldman bearish.
  • Dec. 5, 2012, 8:59 AM
    Gold gets a downgrade at Goldman Sachs, the firm lowering its 2013 end-of-year price forecast to $1,800/oz., and 2014 to $1,750. "We see growing downside risks ... the gold outlook is caught between the opposing forces of more Fed easing and a gradual increase in U.S. real rates on better U.S. economic growth."
  • Nov. 29, 2012, 9:02 AM
    Agreeing on the creaky condition of the fiscal position of Western governments, two economists come to the opposite conclusion on gold. Lombard's Leigh Skene thinks the EU debt crisis has set in play a deflationary spiral in which gold falls (and sliver plunges), while John Williams says 2014 will bring realization of the U.S. government's insolvency and a soaring price.
  • Nov. 15, 2012, 10:01 AM
    Gold slides 1.1% amidst the World Gold Council reporting an 11% Y/Y decline in Q3 demand to 1.1K metric tons. Central banks remained steady buyers, but investment demand - ETPs, bars, coins - was off 16% Y/Y. The WGC notes 2011 Q3 is a tough comparison, and demand remains well above the 5-year average of 984.7 metric tons.
  • Nov. 14, 2012, 10:46 AM
    No one can predict the future, but that central banks will continue pump-priming next year is about as certain as it gets. Look for gold to take out $2K/oz. in 2013 as a result, says Deutsche's Ray Key. Bulls should nevertheless take caution at these levels, he says, because the market "remains fundamentally long." A two-handed forecast if there ever was one.
  • Nov. 9, 2012, 3:19 PM
    The current iteration of QE isn't yet giving a lift to gold because it hasn't stoked the monetary base the way versions I and II did, says Deutsche Bank. Give QE3 time, says Deutsche, and bank reserves will start growing, real rates will move further into negative territory, the dollar will weaken, and the yellow metal will perk up.
  • Nov. 1, 2012, 12:17 PM
    Gold ETFs continued to enjoy strong inflows in October, even as the price buckled (from $1,800 to $1,700 pretty much in a straight line). The $2.5B of net inflows last month brings the 3-month total to $10B, according to BlackRock. GLD and IAU garnered the majority of the money.
    | 1 Comment
DZZ vs. ETF Alternatives
DZZ Description
The PowerShares DB Gold ETNs provide investors with a cost-effective and convenient way to take a short or leveraged view on the performance of gold. All of the PowerShares DB Gold ETNs are based on a total return version of the Deutsche Bank Liquid Commodity Index-Optimum Yield Gold™.
See more details on sponsor's website
Find the right ETFs for your portfolio: Seeking Alpha's new ETF Hub