This essay is based on the Premium Update posted November 6th, 2009

The recent huge purchase of gold by the Indian central bank triggered a substantial rally that took gold to new (nominal - !) highs gathered a lot of attention and generated a substantial rally. I’ve touched this subject in my previous essay, but since this topic is so popular, I would like to put additional comments this time, but from a different point of view. In the following essay I would like to comment on the negative impact that the future government sales may have on the price of gold. After all, that is a wide-known argument against investing in the precious metals. It is said that gold is not a good investment, because governments and central banks around the world will at some point flood the market with their gold reserves and thus cause a massive plunge in the price of gold and silver (correlated with gold).

This essay is based on the Premium Update posted October 30th, 2009

The U.S. Dollar, the currency which precious metals are priced in, is standing at a crossroads today. The possibility of breakout to the upside has grown in the past week, but the trend still remains down. So, what are the implications for the precious metals?

By Dave Nadig

It’s one thing to love a product for its innovation, but another to blanket the world with that love without highlighting the real problems.

This essay is based on the Premium Update posted October 23rd, 2009

The crude oil market has lost most of its popularity since it is no longer near $150 per barrel (no longer do oil-related topics dominate the main financial websites), but nonetheless I’m sure that nobody can deny crude oil’s importance in today’s globalized economy. It is vital for both businesses and individual consumers, as fuels are derived from it. Most of us need to drive and purchase goods that also need to be transported to us directly or indirectly.

This essay is based on the Premium Update posted October 16th, 2009

In one of the previous essays I’ve drawn Readers’ attention to the fact that gold has now decisively broken above the $1,000 level, and that this profound action has important implications for all gold and silver investors. I have received many e-mails from investors (for which I am thankful) and several of them asked about the price of gold in currencies other than gold. Therefore, this week I will provide you with analysis of gold with emphasis on its price in currencies other than U.S. Dollar.

A positive report indicating that manufacturing in the United States is in expansion mode helped give a boost to silver and its related ETFs, kicking off the month of September for the metal with a bang.

Silver, like any other commodity, is volatile and requires an understanding of the market before an investors jumps in. David Morgan of NuWire Investor states that among the things an you should do before investing in silver is get educated, do some research, know how much you have to invest with and stay on top of the market.

The number of exchange-traded products on Deathwatch increased for the first time in five months. This month’s list of 142 names is up from 134 last month while still remaining below the record high of 171 in March. The current list consists of 105 ETFs and 37 ETNs that are at least six months old and failed to have an Average Daily Value Traded (ADVT) of at least $100,000 during July.

Claymore/Morningstar Information Super Sector Index ETF (MZN) tops the list this month. It only managed to trade a measly 45 shares per day on average. This translates to an ADVT of just $813. A closer look reveals that all of its trading took place on just two days, with 896 shares changing hands on July 1 and 100 more shares on July 21. The other 20 trading days it showed up in the zero volume reports.

One of Europe’s most prominent ETF sponsors has jumped across the pond, making its initial foray into the U.S. markets. ETF Securities (ETFS), which has about $12 billion invested in more than 130 products worldwide, launched the ETFS Silver Trust (SIVR) on Friday. The new fund will trade on the NYSE Arca Exchange, and has an initial expense ratio of 0.30% (the expense ratio will be capped at 0.45% after July 24, 2010).

ETFS has a history of innovations in the ETF industry. The company, led by chairman Graham Tuckwell, developed the world’s first gold exchange-traded product in Australia and London and launched the first crude oil ETP in 2005.

By Brad Zigler

Silver traders continued to take profits in the overnight market early Tuesday in anticipation of the London fix. When City dealers settled at $10.85, the move seemed prescient.

by Brad Zigler

Real-time Inflation Indicator (per annum): 10.0%

The overnight market wasn't good to silver. By 7 a.m. Eastern Time, COMEX futures were down more than 3.5% ahead of the London cash market fix. But that shouldn't come as a surprise to metals traders. After all, silver ran the table in the last trading week of 2008, rising 7.7% in the spot market against gold's 3.9% gain. A reaction ought to be expected, right?

The number of ETFs on Deathwatch continues to grow as we enter 2009. My current list contains 139 names: 97 ETFs and 42 ETNs. The list includes any ETF/ETN that is at least six months old and had an Average Daily Value Traded of less than $100,000 in December.

Exchange Trade Notes are suffering from concerns of default risk. The Lehman Brothers (LEHMQ.PK) bankruptcy, which resulted in the demise of three ETNs, is causing investors to hesitate before throwing money into these products. Unless ETN sponsors to take steps to calm investor fears, their representation on the list is likely to grow in the coming months.

ProFunds Group launched on Wednesday the first exchange-traded funds in the U.S. to provide short or leveraged exposure to gold or silver.

Last week, ProFunds made a splash when it launched the majority of the new 200% inverse and leveraged commodities and currency ETFs on the NYSE Arca. Those ETFs covered the DJ-AIG Commodity Index, crude oil, the euro and the yen—offering 200% long and short versions of each.

Many of our readers at AboutETFs.com enjoyed our earlier article The Complete List of Currency ETFs and have been requesting a similar list for commodities. So, once again, by popular demand, here is our newest list, The Complete List of Commodity ETFs and ETNs, as of October 20, 2008.

COMMODITY BASKETS (All Commodities)

By Lawrence Carrel

It's been a stomach-churning period for the U.S. economy. During the first six months of 2008, the macroeconomic reasons that sent the stock market plunging into bear market territory pushed precious metals to new highs. But since then, gold, silver and platinum have experienced corrections ranging from 10% to 23%.

Even after oil's $8 pullback in two days, the long-term uptrend line for the commodity hasn't been tested.  For oil to test the bottom of its uptrend, it needs to get down to the $132-$133 range.  Until then, talk of a "bubble" bursting is pointless. 

Along with oil, most other commodities have seen pretty big declines in the last two days.  Based on their trading range charts shown below, the declines in copper, coffee and corn seem to be the most extreme.  However, none of the ten commodities shown below are even trading in oversold territory after this week's selloff. 

Broad Based Commodity ETFs and ETNs
E-TRACS UBS Bloomberg CMCI Index ETN (UCI)
GreenHaven Continuous Commodity Index (GCC)
GS Connect S&P GSCI Enhanced Commodity Total Return Strategy Index ETN (GSC)
iShares GSCI Commodity-Indexed Trust ETF (GSG)
iPath Dow Jones-AIG Commodity Index Total Return ETN (DJP)
iPath S&P GSCI Total Return Index ETN (GSP)
PowerShares DB Commodity Index Tracking Fund ETF (DBC)
Opta Lehman Brothers Commodity Index Pure Beta Total Return ETN (RAW)

Back in November, Moody's Investors Service downgraded UBS' financial strength rating from "A-" to "B+" on the heels of Standard & Poor's slashing the bank's long-term credit rating from "AA+" to "AA." If there were a bright side to this it was that Moody's continued to rate the bank's senior debt as "Aaa."