Philman

DZZ: How To Short Gold by Going Long

The last place I'd want to be, right now, is shorting gold or silver. Soon, big bank short futures position writers, will be finished with this particular downward manipulation. When that finally happens, the price pressure will ease, and prices will start rising.

They may soar, if what Kenneth Rogoff, former chief economist of the IMF says (that a huge US based bank is about to fail) ends up coming true. But, even if that were not the case, one never knows when gold is going up, or going down.

It is utter foolishness to own any type of leveraged gold investment. Gold should be purchased with cash ONLY, and kept for the long term. If you buy on margin, or using one of these margined instruments, you will surely lose your shirt. Gold and silver are the two most carefully manipulated commodities in the world.

Most of us are not privy to what is said inside the smoke filled rooms. Anyone who is heavily leveraged or margined is going to get creamed. Check out this article, which goes into great detail about the way that manipulators play the precious metals game.

seekingalpha.com/artic...