sdavid0419

Why Leveraged and Derivatives-Based ETFs Are Dangerous

When oil was rising with no end in sight I bought the oil up fund thinking it was a no brainer. After I thought about it I dumped it for a short term gain figuring what would happen if either the up fund or the down fund got to zero. I didn't want to find out.

With the gold etf's and the future's trading thereof it opens the door for serious foul play. Its a known fact that there is not enough known gold in the world to back all of the US dollars being printed by Mr. Bernanke. Yet with derivatives like this and the other metal funds the Maddoff types can manipulate the amount of gold needed to back such paper money without it existing.