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JimVanMeerten (63.03)

Is there gold in ETF's

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November 09, 2009 – Comments (1) | RELATED TICKERS: DGL

On Financial Tides we realize there many 2 reasons to buy ETF's. You can make plays on the economy, the underlining fundamentals of a particular industry or country or just plain technical analysis.

DGL the Proshares double Gold ETF is just such a technical play. Gold has been rising and this ETF gives you leverage.

Right now DGL is within .33% of its recent high and has seen 4 new highs in the last 5 days and 6 new highs in the last 20. It's had an 18.41% price appreciation in the last 65 days.

BarChart's technical analysis indicators have a buy signal on 13 out of 13 indicators for a 100% buy signal. Over on Motely Fool the CAPS rating by their readers is 105 to 10 in favor of a further price increase.

Recommendation: If you think gold will go up and the dollar will continue to weaken then DGL the Proshres double Gold ETF is a buy at 40 with a protective stop loss no higher than 37.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com

Disclosure: I hold no positions in DGL at the time of this publication

1 Comments – Post Your Own

#1) On November 09, 2009 at 2:29 PM, jesusfreakinco (28.89) wrote:

Jim,

To answer your question... no Gold ETFs are NOT backed by gold and don't offer an investor the same protection as holding the physical or the same upside as gold mining stocks.  Read more at http://www.gata.org/ if you are interested.

JFC

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