RE: RE: Robbie OT"Short HGU "
What he said.........anytime you have the opp. to go long, if you can short the opposite ETF, that is the better way to do it. It is most effective with HNU (due to the erosion effect of contango) but it will work for all of them......basically, you're putting the costs of running the ETF (fees, contagon if apporpriate etc.) to work for you. Instead of paying the fees (not a lot of money, but hey, it all adds up) you are paying yourself with those fees by shorting.
I'm actaully taking it one step furthur and buying options for added leverage. Options, if you're not sure how they work, are riskier....but if you're right you can make a pile.
In the case of HGU, I think that it is likely it will hit $12...of course, predicting exactly when is impossible, but I think it will be sometime before March. So you can do two things....short HGU, or buy put options (as I have done)
Both have their merits....just shorting HGU is safer, of course....but I am very confident that a correction in gold has to happen (long term, I am bullish gold, but I'm talking meium term now)