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The gold bugs are rejoicing. A crisis on the southern border, another war brewing in the Middle East, a successful cyberattack on one of the nation&#39;s energy pipelines, and obvious signs of inflation have resulted in a flight to safety.

The price of gold has risen almost 10% since early April.

3 ETFs To Play The Gold Breakout

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Market Vectors ETF Trust Market Vectors Gold Miners

MicroSectors Gold Miners -3X Inverse Leveraged ETNs

GDXD

GDXJ

MicroSectors Gold Miners 3X Leveraged ETN

GDXU

GOLD

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

New 3X Leveraged Gold Miners ETNs Begin Trading

Long Silver, Short Gold ETFs? Maybe

ProShares UltraShort Gold

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<ul>
<li>Gold rose 0.16% to $1,940.15 at 04.30 AM ET</li>
<li>Silver rose 0.21% to $23.328 at 04.30 AM ET</li>
</ul>

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SGOL

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Gold And Silver Prices Edge Higher Today, Ahead Of US Inflation Data

The gold bugs are rejoicing. A crisis on the southern border, another war brewing in the Middle East, a successful cyberattack on one of the nation&#39;s energy pipelines, and obvious signs of inflation have resulted in a flight to safety.
The price of gold has risen almost 10% since early April.
Many investors would like to invest in gold, but they don&rsquo;t want to deal with the hassle of buying and storing it. And buying the stocks of individual gold companies can be very risky.
These investors should consider gold ETFs, such as the SPDR Gold Shares ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gld#NASDAQ">GLD</a>), the ProShares Ultra Gold ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ugl#NASDAQ">UGL</a>), and the ProShares UltraShort Gold ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gll#NYSE">GLL</a>).
See Also: <a href="https://www.benzinga.com/money/best-gold-stocks/">Best Gold Stocks Right Now</a>
The investment objective of GLD is to reflect the performance of the price of gold bullion, minus the ETF&rsquo;s expenses.
<img alt="gld.png" src="https://www.benzinga.com/files/u344550/gld.png" style="height:400px; width:751px" />
UGL is for aggressive investors. It uses leverage.
UGL seeks to replicate the daily investment results, before fees and expenses, that correspond to twice the daily performance of the Bloomberg Gold Subindex.
<img alt="ugl.png" src="https://www.benzinga.com/files/u344550/ugl.png" style="height:400px; width:640px" />
GLL is designed for aggressive investors who think the price of gold is going down. It seeks daily investment results that correspond to two times the inverse of the daily performance, minus fees and expenses, of the Bloomberg Gold Subindex.
<img alt="gll.png" src="https://www.benzinga.com/files/u344550/gll.png" style="height:400px; width:640px" />

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
The price of gold spot hit an all-time high in August 2020, as did the SPDR Gold Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gld#NYSE">GLD</a>). Meanwhile, the VanEck Vectors Gold Miners ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdx#NYSE">GDX</a>), the largest gold mining exchange traded fund by assets, hit a 7-year high.
With this in mind, sophisticated investors seeking to manage daily trading risks as part of an overall diversified portfolio are now able to trade two new exchange traded notes with +3X and -3X leverage. The MicroSectors Gold Miners 3X Leveraged ETN (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdxu#NYSE">GDXU</a>) and MicroSectors Gold Miners -3X Inverse Leveraged ETN (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdxd#NYSE">GDXD</a>) offer sophisticated investors +3X and -3X inverse daily exposure, respectively, to an index that tracks the performance of two gold mining exchange traded funds, compounded daily before taking into account fees. GDXU and GDXD are linked to the performance of the S-Network MicroSectors&trade; Gold Miners Index. &nbsp;&nbsp;
These ETNs seek a return on the underlying index for a single day, resetting daily. The performance of these ETNs over longer periods of time can differ significantly from the performance (or inverse of the performance) of their underlying index during the same period of time. You should proceed with extreme caution in considering an investment in the ETNs.
<h3>What&rsquo;s Different About GDXU And GDXD?</h3>
Unlike other leveraged gold products, like the ProShares Ultra Gold Commodity (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ugl#NYSE">UGL</a>) and ProShares UltraShort Gold (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gll#NYSE">GLL</a>) that provide exposure to commodity futures, GDXU and GDXD provide exposure to the performance of the two largest gold mining exchange traded funds, GDX and GDXJ, which invest in the common stocks of precious metal mining companies. Accordingly, an investor in GDXU and GDXD has exposure to these stocks, and does not have direct exposure to the price of gold itself.&nbsp;
GDXU and GDXD are linked to the performance of the S-Network MicroSectors&trade; Gold Miners Index which tracks the performance of two of the largest gold mining exchange traded funds, the VanEck Vectors&reg; Gold Miners ETF (the &ldquo;GDX&rdquo;) and the VanEck Vectors&reg; Junior Gold Miners ETF (the &ldquo;GDXJ&rdquo;). The index&rsquo;s underlying composition is market capitalization weighted across both ETFs. &nbsp;&nbsp;
The chart below shows the performance of GDX and GDXJ from January 1, 2020 through December 2, 2020. Past performance is not indicative of future results.
<img alt="image001_10.png" src="https://www.benzinga.com/files/u91860/image001_10.png" style="height:367px; width:700px" />
It&rsquo;s worth noting that GDXU and GDXD are exchange traded notes (ETNs), not exchange traded funds (ETFs), a key difference. For example, ETNs are structured as senior unsecured debt obligations of the issuer. GDXU and GDXD are ETNs issued by the Bank of Montreal, and investors are subject to the bank&rsquo;s credit risk.&nbsp;
<h3>What These ETNs Track</h3>
GDXU and GDXD are linked to the performance of the S-Network MicroSectors&trade; Gold Miners Index (MINERS). The index tracks the performance of two of the largest gold mining ETFs, the VanEck Vectors Gold Miners ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdx#NYSE">GDX</a>) and the VanEck Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gdxj#NYSE">GDXJ</a>). GDX tracks the performance of the NYSE Arca Gold Miners Index, which includes companies involved in the gold mining industry such as Newmont Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>) and Barrick Gold Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>). GDXJ tracks the MVIS Global Junior Gold Miners Index.
GDXU seeks to deliver 3X the daily return of the index and GDXD seeks to return 3X the daily inverse return of the index. These are intended to be held as short-term investments and not intended to be buy-and-hold investments.&nbsp;
The exchange traded notes are subject to the credit risk of Bank of Montreal, the issuer of the ETNs. The ETNs are also subject to the issuer&rsquo;s credit ratings, and the issuer&rsquo;s credit spreads may adversely affect the market value of the notes. 
Please note that leveraged, inverse and inverse leveraged ETNs seek a return on the underlying index for a single day. Those investments are not &ldquo;buy and hold&rdquo; investments, and should not be expected to provide the respective return of the underlying index&rsquo;s cumulative return for periods greater than a day. The investments are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives only on a daily basis. Leveraged investments include risk and are not suitable for all investors. You should proceed with extreme caution in considering an investment in the ETNs. &nbsp;For each ETN, please read the disclosure documents, including the relevant pricing supplements, for additional information, including the relevant risk factors, before making an investment decision. 
Bank of Montreal, the issuer of the ETNs, has participated in the preparation of this article in connection with its offering of the ETNs. &nbsp;Bank of Montreal has filed a registration statement (including a pricing supplement, a prospectus supplement and a prospectus) with the Securities and Exchange Commission (the &quot;SEC&quot;) about each of the ETNs that are being offered by this free writing prospectus. Please read those documents and the other documents relating to these offerings that Bank of Montreal has filed with the SEC for more complete information about Bank of Montreal and these offerings. These documents may be obtained without cost by visiting EDGAR on the SEC website at <a href="http://www.sec.gov" title="www.sec.gov">www.sec.gov</a>. Alternatively, Bank of Montreal, any agent or any dealer participating in these offerings will arrange to send the applicable documents if so requested by calling toll-free at 1-877-369-5412.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

If precious metals exchange-traded funds, such as the SPDR Gold Trust (ETF) (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>) and the iShares Silver Trust (ETF) (NYSE: <a class="ticker" href="/stock/slv#NYSE">SLV</a>), were to be compared to high school sports teams, the gold funds would be the varsity team while SLV and friends would be the junior varsity squad.
That is not so much a knock on SLV as it is a testament to GLD&#39;s strength. Year to date, the world&#39;s largest bullion-backed ETF is up 16.2 percent, while SLV is higher by &ldquo;just&rdquo; 10.5 percent. Negative interest rates throughout the developed world coupled with investors&#39; thirst for safe assets, among other factors, have buoyed GLD and left SLV to pick up the scraps.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/16/03/7658918/a-reason-not-to-trust-the-coal-etfs-rally">A Reason Not To Trust The Coal ETF's Rally</a></bzrelatedlink>
That situation has reversal potential, and ambitious traders can exploit it to the fullest by shorting gold and being long silver.
&ldquo;Gold has been the best performing asset this year for two main reasons: a referendum on negative interest rates (i.e. currency devaluation) and credit stress, both of which have caused the trade-weighted US dollar to sell off by more than 4 percent since the beginning of February,&rdquo; said <a href="https://rareviewmacro.com/">Rareview Macro</a> founder Neil Azous in a note out Friday. 
<h3>Shorting Gold And Going Long On Silver</h3>
In that note, Azous unveiled a long silver/short gold thesis. Traders shooting for the stars with this trade can employ some leverage via the PowerShares DB Gold Double Short ETN (DB Gold Double Short ETN due February 15, 2038) (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>)) or the ProShares UltraShort Gold (ETF) (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>), which are double-leveraged bearish plays on gold. Of course, those are volatile products because they are leveraged and silver has its own sordid history of being exceptionally volatile at times, so this idea is not for the faint of heart or sensitive of stomach.
Regardless of what ETFs one chooses to put on this trade, a solid case can be made that silver could soon outshine its yellow counterpart.
&ldquo;On the other leg, because silver has more of an industrial bent on a cyclical recovery globally, there is a reason to expect it to perform better if commodities as an asset class hold its recent bid-tone. Additionally, of late, silver has lagged the recovery in other industrial metals such as nickel, aluminum, and copper,&rdquo; added Azous.
For those worried about long silver being a crowded trade, don&#39;t be. It&#39;s not. At least not from the ETF side. SLV has brought in just $123 million in new assets this year, a mere fraction of the nearly $5.8 billion hauled in by GLD. GLD is this year&#39;s top asset-gathering ETF.
Image Credit: <a href="https://pixabay.com/en/pastels-oil-pastels-paint-gold-212321/">Public Domain</a>

SPDR Gold Trust (ETF) (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>), the world&#39;s largest exchange-traded product backed by physical holdings of bullion, has lost 10 percent year-to-date.
 With many market participants expecting the Federal Reserve to raise interest rates at its December meeting, GLD and rival gold ETFs are seeing their losses accelerate.
<h3>Gold On The Move</h3>
In just the past month, GLD is lower by 8.2 percent. On Monday, GLD notched its lowest close since the final trading day of the third quarter of 2009. As market participants continue resetting interest rate hike expectations to reflect the notion that the Federal Reserve will increase borrowing costs following its December meeting, plenty of rate-sensitive asset classes and sectors are coming under intense scrutiny.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/11/5984991/gold-miners-etfs-are-getting-smoked">Gold Miners ETFs Are Getting Smoked</a></bzrelatedlink>
Add commodities and commodities producers to that list &ndash; a list that most certainly includes gold and gold mining equities. The November tale of the tape for leveraged gold miners exchange-traded funds <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/11/5969460/rate-hike-odds-shine-a-light-on-leveraged-gold-miners-etfs">reflects the havoc</a> traders expect will be wrought upon gold and bullion-producing companies as the Fed inches closer to higher interest rates.
Even with all of gold woes, many traders have not been tempted by various inverse gold exchange-traded products. Those traders are missing out.
<h3>Give Inverse Gold Another Look</h3>
Over the past month, the DB Gold Double Short ETN due February 15, 2038 (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>) and the ProShares UltraShort Gold (ETF) (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>), which attempts to deliver double the daily inverse performance of the London fixing gold price, have each soared nearly 18 percent. Yet, since the start of the current quarter, GLL has lost nearly $1.1 million in assets while DZZ has added a modest $7.6 million. 
Over the same period, GLD has bled more than $893 million. Only two ETFs have lost more assets during the fourth quarter than GLD. Year-to-date, GLD is lighter by $1.6 billion in assets, an outflows total exceeded by just eight other ETFs.
DZZ and GLL are not the only inverse gold ETFs receiving a chilly reception from traders. The DB Gold Short ETN due February 15, 2038 (NYSE: <a class="ticker" href="/stock/dgz#NYSE">DGZ</a>), the non-leveraged equivalent of DZZ, has climbed 8.8 percent over the past month; however, since the start of the fourth quarter, DGZ has lost nearly $19 million in assets. 
The Credit Suisse AG - VelocityShares 3x Inverse Gold ETN (NYSE: <a class="ticker" href="/stock/dgld#NYSE">DGLD</a>), which attempts to deliver triple the daily inverse performance of the S&amp;P GSCI Gold Index Excess Return, has surged a staggering 29 percent over the past month. One might think a performance like that would lure traders to DGLD, but the triple-leveraged ETN has seen fourth-quarter inflows of just $1.5 million. 
Image Credit: <a href="https://pixabay.com/en/horizontal-pocket-gold-gold-nugget-626086/">Public Domain</a>

Intraday Update

DGLD

Gold's Tumble Not Luring Traders To Inverse ETFs

By&nbsp;<a href="http://www.dailygainsletter.com/author/johnwhitefoot/" rel="author" style="font-family: Verdana, Arial, Geneva, sans-serif; font-size: 12px; line-height: 16px; background-color: rgb(255, 255, 255);" title="Posts by John Whitefoot">John Whitefoot</a>

	Gold prices&nbsp;hit one-week highs after the&nbsp;<a data-mce-href="http://www.dailygainsletter.com/federal-reserve/" href="http://www.dailygainsletter.com/federal-reserve/" title="Federal Reserve">Federal Reserve</a>&nbsp;did exactly what it said it would do (not what the market feared it would do)&mdash;continue it&rsquo;s $85.0-billion-per-month bond buying program until unemployment numbers decrease and inflation increases.

	Gold, often seen as a safe haven investment and hedge against inflation, had lost more than 20% of its value since the beginning of the year after the Federal Reserve hinted it would start to taper quantitative easing, which would put an end to its loose&nbsp;<a data-mce-href="http://www.dailygainsletter.com/monetary-policy/" href="http://www.dailygainsletter.com/monetary-policy/" title="monetary policy">monetary policy</a>.

	More recently, gold prices had been on the decline since the beginning of September on encouraging U.S. economic data and suggestions that a war in Syria would be averted. Between September 3 and 17, gold lost approximately six percent of its value.

	But in spite of gold&rsquo;s year-long tumble, it&rsquo;s important to remember that gold prices are still roughly 60% higher than they were in late 2008, before the Federal Reserve kick-started its first round of quantitative easing.

	Gold was poised to fall even further had the Federal Reserve announced it would begin to taper its quantitative easing policies. It didn&rsquo;t, however, and the markets responded in kind.

	The price of gold bullion soared 4.2% last Wednesday to around $1,367 per ounce, its largest daily gain since June 2012, after Federal Reserve chairman Ben Bernanke said it would stick to its stimulus plan (for now).

	The correction in gold prices was inevitable. That&rsquo;s because gold, and many other sectors, have become overly reliant on the Federal Reserve&rsquo;s support. Gold prices drop when investors think the Fed&rsquo;s going to taper, and they rise when it doesn&rsquo;t. Even the risk of war in the Middle East takes a back seat to the Federal Reserve&rsquo;s quantitative easing program.

	While the correction in gold prices was inevitable, so too is the fact that the Federal Reserve will eventually begin to scale back quantitative easing, though probably not until early 2014. When it does, gold prices will likely resume their decline. After all, encouraging economic data will point to sustained U.S. growth&mdash;and less of a need for a low-interest-rate environment.

	All of this will negatively impact gold bulls. That said, investors can gain exposure to gold regardless of the fluctuations. Long-term investors looking to benefit from rising gold prices might want to consider a gold exchange-traded fund, (ETF) like SPDR Gold Shares (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>) or iShares Gold Trust (NYSE: <a class="ticker" href="/stock/iau#NYSE">IAU</a>), individual mining shares, or even physical gold.

	More active investors will focus on futures and options. That said, with quantitative easing on the backburner and few major political triggers out there to spark fear into the markets, short-term investors looking to make money on gold are probably going to want to take a breather.

	Or investors could look at ETFs that short gold, like the ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) or PowerShares DB Gold Short ETN (NYSE: <a class="ticker" href="/stock/dgz#NYSE">DGZ</a>). They could also consider an ETF that shorts gold&nbsp;<a data-mce-href="http://www.dailygainsletter.com/mining-companies/" href="http://www.dailygainsletter.com/mining-companies/" title="mining companies">mining companies</a>, like Direxion Daily Gold Miners Bear 3X Shares (NYSE: <a class="ticker" href="/stock/dust#NYSE">DUST</a>).

	While it&rsquo;s impossible to predict where gold prices will go, there is enough economic and geopolitical sentiment to make a case for going either short or long with gold. Thankfully, there are a large number of investing strategies to suit any outlook.

	This article&nbsp;<a data-mce-href="http://www.dailygainsletter.com/precious-metals/how-to-profit-from-golds-current-price-instability/1868/" href="http://www.dailygainsletter.com/precious-metals/how-to-profit-from-golds-current-price-instability/1868/" target="_blank">How to Profit from Gold&rsquo;s Current Price Instability</a>&nbsp;was originally published at&nbsp;<a data-mce-href="http://www.dailygainsletter.com" href="http://www.dailygainsletter.com/" target="_blank">Daily Gains Letter</a>

DUST

How to Profit from Gold's Current Price Instability

Big winners (up at least 5%, list condensed due to tapering announcement): iShares MSCI Brazil Capped ETF (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>), Global X Brazil Consumer ETF (NYSE: <a class="ticker" href="/stock/braq#NYSE">BRAQ</a>), PowerShares DB Silver (NYSE: <a class="ticker" href="/stock/dbs#NYSE">DBS</a>), Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>), Market Vectors Indonesia ETF (NYSE: <a class="ticker" href="/stock/idx#NYSE">IDX</a>), iShares MSCI Poland Investable Market ETF (NYSE: <a class="ticker" href="/stock/epol#NYSE">EPOL</a>), Market Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdxj#NYSE">GDXJ</a>), Global X Silver Miners ETF (NYSE: <a class="ticker" href="/stock/sil#NYSE">SIL</a>) and the iShares MSCI Thailand Investable Market ETF (NYSE: <a class="ticker" href="/stock/thd#NYSE">THD</a>).

	Big losers (down at least 5%): Direxion Daily Gold Miners Bear 3X Shares (NYSE: <a class="ticker" href="/stock/dust#NYSE">DUST</a>), ProShares UltraShort Utilities (NYSE: <a class="ticker" href="/stock/sdp#NYSE">SDP</a>), ProShares UltraShort MSCI Brazil (NYSE: <a class="ticker" href="/stock/bzq#NYSE">BZQ</a>), ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) and the ProShares UltraShort Silver (NYSE: <a class="ticker" href="/stock/zsl#NYSE">ZSL</a>).

	Unusual volume (at least 5X ADV): EGShares Emerging Markets Domestic Demand ETF (NYSE: <a class="ticker" href="/stock/emdd#NYSE">EMDD</a>), Global X China Industrials ETF (NYSE: <a class="ticker" href="/stock/chii#NYSE">CHII</a>), First Trust US IPO Index Fund (NYSE: <a class="ticker" href="/stock/fpx#NYSE">FPX</a>), SPDR S&amp;P International Technology Sector ETF (NYSE: <a class="ticker" href="/stock/ipk#NYSE">IPK</a>) and the iPath Global Carbon ETN (NYSE: <a class="ticker" href="/stock/grn#NYSE">GRN</a>).

	Must reads of the day:

	WisdomTree analyzes the important <a href="http://www.wisdomtree.com/blog/index.php/the-anatomy-of-a-simple-exchange-traded-fund-spread/">issue of ETF spreads.</a>

	<a href="http://www.wisdomtree.com/blog/index.php/the-anatomy-of-a-simple-exchange-traded-fund-spread/">Breakout: Dollar dips, stocks soar </a><a href="http://finance.yahoo.com/blogs/breakout/market-awaiting-fomc-announcement-bernanke-presser-173933565.html?l=1">as tapering is shelved</a>.

	Fortune/CNN Money: Preparation for <a href="http://tech.fortune.cnn.com/2013/09/18/twitter-post-ipo/?section=magazines_fortune">the Twitter IPO</a>.

	Marketwatch: Gold soared today <a href="http://www.marketwatch.com/story/the-cruelest-month-for-gold-2013-09-18">but the gains may be short-lived.</a>

	<a href="http://www.marketwatch.com/story/the-cruelest-month-for-gold-2013-09-18">Speaking of Internet stocks and ETFs, check out where </a><a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3923975/this-years-hottest-stocks-reside-in-small-etfs">2013's hottest stocks reside</a>.

	Emerging Markets consumer ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3923773/emerging-markets-consumer-etfs-roar-back-to-life">are back in a big way</a>.

	Don't forget to follow me on Twitter <a href="https://twitter.com/ETFProfessor1">@ETFProfessor1</a>.

Sector ETFs

Broad U.S. Equity ETFs

Emerging Market ETFs

Currency ETFs

After-Hours Center

BRAQ

CHII

EMDD

iShares MSCI Poland Investable Market Index Fund ETF

EPOL

SPDR S&P International Technology Sector ETF

iShares MSCI Thailand Investable Market Index Fund

Benzinga's Mandatory ETF Reading for September 18, 2013

Here is the ETF Professor's ETF Watch List for Friday, July 5, 2013.

Keep an eye on the WisdomTree Europe Hedged Equity Fund (NYSE: <a class="ticker" href="/stock/hedj#NYSE">HEDJ</a>).

Check in with the WisdomTree Japan Hedged Equity Fund (NYSE: <a class="ticker" href="/stock/dxj#NYSE">DXJ</a>).

Index play of the day: ProShares UltraShort S&amp;P500 (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>).

The ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) could be ready to snap back.

Emerging markets plays of the day: iShares MSCI Taiwan Index Fund (NYSE: <a class="ticker" href="/stock/ewt#NYSE">EWT</a>), WisdomTree India Earnings ETF (NYSE: <a class="ticker" href="/stock/pie#NYSE">PIE</a>) and the PowerShares DWA Emerging Markets Technical Leaders ETF (NYSE: <a class="ticker" href="/stock/pie#NYSE">PIE</a>).

Forex play of the day: CurrencyShares British Pound Trust (NYSE: <a class="ticker" href="/stock/fxb#NYSE">FXB</a>).

Bond play of the day: Market Vectors High-Yield Muni ETF (NYSE: <a class="ticker" href="/stock/hyd#NYSE">HYD</a>).

Pre-Market Outlook

WisdomTree Trust Japan Total Dividend Fund

CurrencyShares British Pound Sterling Trust

HEDJ

Market Vectors High Yield Municipal Index ETF

PowerShares DWA Emerging Markets Technical Leaders

ETFs to Watch July 5, 2013 (GLL, HYD, SDS)

Friday is the last day of the second quarter so now is the ideal time to have a look at the themes and ETFs that worked well for investors over the past three months.

	According to simple screen that we <a href="http://www.finviz.com/screener.ashx?v=141&amp;f=ind_exchangetradedfund,ta_perf_13w10o&amp;ft=3&amp;o=-perf13w">ran on Finviz</a>, fewer than 50 ETFs and ETNs are showing second-quarter gains of 10 percent or more.

	The Direxion Daily Gold Miners Bear 3X Shares (NYSE: <a class="ticker" href="/stock/dust#NYSE">DUST</a>) is on pace for a second-quarter triple, making it the best-performing ETF for the quarter. DUST's stellar second-quarter performance is nothing new. Even with a more than eight percent loss Thursday, this triple-leveraged bearish play on gold miners is up almost 450 percent in the past six months.

	DUST also serves as a good segue to exploring some of the similarities among the second quarters ETF studs. Of the 20 top ETFs and ETNs after DUST in terms of second-quarter returns, five are bearish plays on precious metals, including the three best after DUST. Those three are the ProShares UltraShort Silver (NYSE: <a class="ticker" href="/stock/zsl#NYSE">ZSL</a>), the ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) and the PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>).

	Prior to Thursday, the average quarterly gain for those three products was nearly 79 percent. Of course, it must be repeated that there are significant risks involved with leveraged ETFs, <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3429669/these-leveraged-etfs-could-be-worth-the-risk">particularly over long holding periods</a>. They taketh as quickly as they giveth.

	Finding non-leveraged star performers among the "Non-DUST 20" is not hard, but the group is small in number. However, investors may already be familiar with some of these ETFs as <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3686609/interesting-similarities-among-2013s-top-performing-etfs">they are among 2013's best non-leveraged performers</a>.

	The four best non-leveraged ETFs in the current quarter are, in order starting with best returns, the Guggenheim Solar ETF (NYSE: <a class="ticker" href="/stock/tan#NYSE">TAN</a>), the Market Vectors Solar Energy ETF (NYSE: <a class="ticker" href="/stock/kwt#NYSE">KWT</a>), the First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ: <a class="ticker" href="/stock/qcln#NASDAQ">QCLN</a>) and the PowerShares WilderHill Clean Energy (NYSE: <a class="ticker" href="/stock/pbw#NYSE">PBW</a>).

	The common theme beyond alternative energy is that as of June 18, three of those four ETFs held at least one Elon Musk stock, Solar City (NASDAQ: <a class="ticker" href="/stock/scty#NASDAQ">SCTY</a>) or Tesla (NASDAQ: <a class="ticker" href="/stock/tsla#NASDAQ">TSLA</a>). KWT was the exception.

	Four of the remaining top performers are linked by the same theme as well. That being <a>rising yields on U.S. Treasurys</a>. Specifically, these are ETFs that are designed to go up when Treasury yields do the same. That quartet includes the ProShares UltraPro Short 20+ Year Treasury (NYSE: <a class="ticker" href="/stock/ttt#NYSE">TTT</a>) and the Direxion Daily 20+ Yr Treasury Bear 3X Shares (NYSE: <a class="ticker" href="/stock/tmv#NYSE">TMV</a>), which are up an average of 22 percent this quarter.

	No surprises among some of the other non-DUST 20. Six are <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3694555/four-more-facts-about-em-etfs-you-need-to-know-now">bearish plays on emerging markets</a>, including three of the top seven. Inverse plays on three of the four BRIC nations are included in that group of six. India is the exception because there is no longer an inverse ETF for that country. The best bearish emerging markets ETF in the second quarter has been the double-leveraged ProShares UltraShort MSCI Brazil (NYSE: <a class="ticker" href="/stock/bzq#NYSE">BZQ</a>). Forget its quarterly performance, though. Even with a 3.5 percent drop on Thursday, BZQ is still up 41.5 percent in just the past month.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Bonds

PowerShares Exchange Traded Fund Trust WilderHill Clean Energy Portfolio

First Trust NASDAQ Clean Edge Green Energy Index Fund

QCLN

SCTY

Direxion Daily 20+ Year Treasury Bear 3X Shares

TSLA

Common Themes Among Q2's Best ETFs

Here is the ETF Professor's ETF Watch List for Thursday, June 20, 2013.

The ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) looks good.

The iShares MSCI Italy Index Fund (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>) is in technical trouble.

Give the iShares Dow Jones Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvy#NYSE">DVY</a>) a try.

Keep an eye the First Trust ISE-Revere Natural Gas Index Fund (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>).

Emerging markets plays of the day: ProShares UltraShort FTSE China 25 (NYSE: <a class="ticker" href="/stock/fxp#NYSE">FXP</a>), Direxion Daily Russia Bear 3X Shares (NYSE: <a class="ticker" href="/stock/russ#NYSE">RUSS</a>) and the iShares MSCI South Korea Index Fund (NYSE: <a class="ticker" href="/stock/ewy#NYSE">EWY</a>).

Currency play of the day: WisdomTree Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: iShares Barclays 20+ Year Treasury Bond ETF (NYSE: <a class="ticker" href="/stock/tlt#NYSE">TLT</a>).

WisdomTree Dreyfus Emerging Currency Fund

iShares Dow Jones Select Dividend Index Fund

First Trust ISE-Revere Natural Gas Index Fund

RUSS

iShares Trust Barclays 20+ Year Treasury Bond Fund

ETFs to Watch June 20, 2013 (EWI, FCG, TLT)

Here is the ETF Professor's ETF Watch List for Thursday, June 6, 2013. 

Keep an eye on the ProShares UltraShort S&amp;P500 (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>).

Sector plays: ProShares UltraShort Oil &amp; Gas (NYSE: <a class="ticker" href="/stock/dug#NYSE">DUG</a>) and the First Trust Financials AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxo#NYSE">FXO</a>).

Give the ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) a look.

Emerging markets plays of the day: ProShares UltraShort FTSE China 25 (NYSE: <a class="ticker" href="/stock/fxp#NYSE">FXP</a>), Market Vectors Egypt Index ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>) and the iShares MSCI Taiwan Index Fund (NYSE: <a class="ticker" href="/stock/ewt#NYSE">EWT</a>).

Forex play of the day: PowerShares DB Dollar Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>).

Bond play of the day: iShares JPMorgan USD Emerging Markets Bond (NYSE: <a class="ticker" href="/stock/emb#NYSE">EMB</a>).

EGPT

iShares JPMorgan USD Emerging Markets Bond Fund

PowerShares DB US Dollar Index Bullish Fund

ETFs to Watch June 6, 2013 (DUG, GLL, UUP)

ProShares, the largest issuer of inverse and leveraged ETFs, announced 2-for-1 splits for two of its ETFs and reverse splits for nine of its funds. The ProShares Ultra Nasdaq Biotechnology (NASDAQ: <a class="ticker" href="/stock/bib#NASDAQ">BIB</a>) and the ProShares Short VIX Short-Term Futures ETF (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>) will be split 2-for-1.

All splits will apply to shareholders of record as of the close of the markets on October 2, 2012, payable after the close of the markets on October 4, 2012. The funds will trade at their post-split price on October 5, 2012, according to a statement issued by ProShares.

Nine ProShares ETFs will be reverse split on a 1-for-4 basis. Those funds are as follows: ProShares UltraShort 20+ Year Treasury (NYSE: <a class="ticker" href="/stock/tbt#NYSE">TBT</a>), the ProShares UltraShort S&amp;P500 (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>), the ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>), the ProShares UltraPro Short Dow30 (NYSE: <a class="ticker" href="/stock/sdow#NYSE">SDOW</a>), the ProShares UltraShort Basic Materials (NYSE: <a class="ticker" href="/stock/smn#NYSE">SMN</a>), the ProShares Ultra MSCI Brazil (NYSE: <a class="ticker" href="/stock/ubr#NYSE">UBR</a>), the ProShares UltraShort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>), the ProShares UltraShort Nasdaq Biotech (NASDAQ: <a class="ticker" href="/stock/bis#NASDAQ">BIS</a>) and the ProShares UltraShort Consumer Goods (NYSE: <a class="ticker" href="/stock/szk#NYSE">SZK</a>).

Those funds will also trade at their post-split prices on October 5.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Stock Split

SDOW

SVXY

ProShares UltraShort Lehman 20+ Year Treasury

ProShares to Split 2, Reverse Split 9 ETFs

Current week has been tough for gold investors. Since Monday's opening price of $1,715 per pound, this precious metal has lost 3.5% or $60 of its value and currently trades at $1,655. In addition, the gold futures broke below its 50-day and 200-day moving averages, which is a bearish signal.

Traditionally, investors have been buying gold to hedge their portfolios against economical and political uncertainty or high inflation. However, strong economic data and the recent rally in the US equities has boosted investors' confidence and made gold a less attractive asset.

Also the Chinese economic data seems bearish for gold. The demand for gold in China has been one of the driving factors for higher gold prices, but the looming concerns of an economic slowdown in China are putting downward pressure on gold. On top of this <a href="">India announced</a> that it will double its customs duty on gold, which could hurt gold exports to India. 

All these factors are signaling that gold could continue falling and test the support level around $1,600 per ounce. Investors who think that the price of gold is going to fall might want to take a look at ProShares UltraShort Gold ETF (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) or PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>) for a higher risk investment.

Futures

Economics

Gold Poised to Fall Lower on Improving US Economy

Direxion Daily Emerging Markets Bull 3x Shares(<a class="ticker" href="/stock/etf#">ETF</a>) (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>) lost 6.59% today, and it closed at $22.53. CNOOC Limited (ADR) (NYSE: <a class="ticker" href="/stock/ceo#NYSE">CEO</a>) is a component of the MSCI Emerging Markets Index, and it fell 3.37%.

Direxion Daily Financial Bull 3X Shares(<a class="ticker" href="/stock/etf#">ETF</a>) (NYSE: <a class="ticker" href="/stock/fas#NYSE">FAS</a>) dropped 5.98% on Thursday, and it closed at $13.21. In the financial space, Bank of America Corp (NYSE: <a class="ticker" href="/stock/bac#NYSE">BAC</a>) lost 3.74%.

Direxion Daily Small Cap Bull 3X Shares(<a class="ticker" href="/stock/etf#">ETF</a>) (NYSE: <a class="ticker" href="/stock/tna#NYSE">TNA</a>) fell 5.70% today as the Russell 2000 Index traded lower. TNA closed at $42.52, and it had a volume of 25.79M traded shares. 

ProShares UltraShort Gold (<a class="ticker" href="/stock/etf#">ETF</a>) (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) traded 5.30% lower, and it closed at $14.82. GLL broke its two-day winning streak today.

Direxion Daily Emerging Markets Bull 3x Shares

Aberdeen Emerging Markets Telecommunications & Infrastructure Fund

Benzinga's Top ETF Decliners, September 8th (EDC, FAS, TNA, GLL)

Some holders of gold must have been spooked out of their gold Tuesday when the analysts at Wells Fargo Private Bank (NYSE: <a class="ticker" href="/stock/wfc#NYSE">WFC</a>) said gold was in a bubble.

Not only did they say gold was in a bubble, but it was in a "<a href="http://www.bloomberg.com/news/2011-08-16/gold-market-is-a-bubble-poised-to-burst-wells-fargo-says-1-.html">bubble that is poised to burst</a>."

You have to wonder if it was a cruel joke to get weaker hands to cash in what Mr. Gold, <a href="http://www.jsmineset.com/">Jim Sinclair</a>, calls insurance against what is to come, namely, the collapse of the US dollar.

The idea it must have been a joke comes from what one of the team members at Wells Fargo said in late 2009.

In December of 2009, Erik Davidson, deputy chief investment officer for Wells Fargo Private Bank, said, "It's quite possible we have seen the peak in gold."

"In 2010, I think things will go back to normal - i.e. a growing economy – and normal takes a bit of fear away from gold," he added back then.

The price of gold at the end of 2009 was a few bucks under $1,100, approximately 60% less than where it is trading today.

Investors should also keep in mind that saying something is in a bubble is nothing less than a cop-out. Gold could rise 1000% from here before diving down in price and Mr. Davidson could rightly say, "See, I told you it was in a bubble."

One should also consider this is coming from Wells Fargo Private Bank. If you were wealthy, would you go to Wells Fargo?

<a href="http://www.bloomberg.com/news/2011-08-15/john-paulson-maintains-31-5-million-shares-in-spdr-gold-trust-holdings.html">John Paulson</a> has stuck with his $4.6 billion stake of SPDR Gold Shares (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>). That should mean something more than what Wells Fargo says.

ACTION ITEMS:
 Bullish:
 
Traders who believe that gold prices will rise might want to consider the following trades:
 

<ul><li> Buy physical gold</li></ul>

<ul><li> SPDR Gold Shares (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>)</li></ul>

Bearish:
 
Traders who believe that gold is in a bubble and about to burst may consider these alternate positions:
 

<ul><li> PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>)</li></ul>

<ul><li> ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>)</li></ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Analyst Color

Hedge Funds

Price Target

General

Was Wells Fargo Joking When It Said Gold Is In A Bubble?

One often heard argument against hoarding gold is, "But you can't eat it."

Well, boys and girls, the truth is, you can eat your gold.

In Mexico, you can suck on a <a href="http://www.scenebylaurie.com/travel-news/the-worlds-most-expensive-popsicle/">tequila popsicle</a> with 24 carat gold flakes inside. Of course, be prepared to shell out $1,000 for your luxury ice pop.

Sounds like the perfect way to cool off on a summer day.

You can eat gold leaf sushi rolls and gold leaf chicken. You can eat chocolate cake covered in gold with a few diamonds thrown in as well. Wash it all down with gold infused Champagne followed by a shot of longtime favorite, Goldschlaeger, which has flakes of gold.

Gold is even used as a food coloring and has its own food coloring number code in Europe, E175.

Of course, you won't be getting any nutritional value from ingesting gold. But the same holds true for US dollars too. Eighteen Franklins won't make a meal either.

"But you can buy a nice meal with a couple Franklins," say the foes of gold.

You can surely buy a nice meal with an <a href="http://catalog.usmint.gov/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10001&amp;storeId=10001&amp;productId=16270&amp;langId=-1&amp;parent_category_rn=10118">American Eagle</a> one-tenth ounce coin as well. It is highly doubtful a restaurant would turn you away because you only have gold.

Most people are under the mistaken belief that gold is a commodity. Even many who believe a collapse of society is imminent fail to recognize gold for what it is: gold is a currency.

With gold trading at record levels, expect to hear more foolishness about the metal, such as you can't eat it.

ACTION ITEMS:
 Bullish:
 
Traders who believe that gold prices will rise might want to consider the following trades:
 

<ul><li> Buy physical gold</li></ul>

<ul><li> SPDR Gold Shares (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>)</li></ul>

Bearish:
 
Traders who believe that the price of gold will fall may consider these alternate positions:
 

<ul><li> PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>)</li></ul>

<ul><li> ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>)</li></ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Topics

Yes, You Really Can Eat Your Gold

FRANKFURT - Gold has hit a fresh record high today of over $1,719 an ounce, its 11th record high in the last 19 trading sessions.

Shares of most unhedged gold miners, however, are far from their all-time highs and well below their 52-week highs.

Barrick Gold (NYSE: <a class="ticker" href="/stock/abx#NYSE">ABX</a>), for example, though up nearly 5% today, would still have to rise over 15% to approach its 52-week high.

Barrick, the biggest gold miner in the world, is actually down approximately 10% year-to-date. This is at odds with SPDR Gold Trust (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>), the gold trust that seeks to replicate the price of gold, which is up nearly 20% year-to-date.

The Amex Gold BUGS Index, also known as the HUI Index and listed on the American Stock exchange, is well off its 52-week high as well. The HUI index tracks 15 of the largest and most widely held unhedged public gold miners.

Barrick is the largest component of the index, and a close second in the index is Goldcorp (NYSE: <a class="ticker" href="/stock/gg#NYSE">GG</a>), another unhedged miner that has risen over 5% today but again, is also well off its highs.

Another favorite unhedged miner, Agnico-Eagle Mines (NYSE: <a class="ticker" href="/stock/aem#NYSE">AEM</a>), is off by nearly 23% year-to-date, and once more, that is after rising over 5% today.

An investor could do very well buying unhedged miners if they believe gold will continue setting records.

As Reuters has <a href="http://af.reuters.com/article/investingNews/idAFJOE77703I20110808">reported</a>, Dominic Schneider, an analyst at UBS Wealth Management, said today that UBS had increased its price target to $1,800, adding, "but I would say the way things evolve right now I really could even imagine $2,000 being in the cards. The chances have increased that we'll reach $2,000--the forecast remains 12-month $1,800, but the risk is that we will actually hit towards $2,000."

If miners play catch up, they could easily outperform gold in the months ahead.

Traders who believe that gold and unhedged gold miners will go higher might want to consider the following trades:
 

<ul><li> Play gold by picking up SPDR Gold Shares (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>)</li></ul>

<ul><li> Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>), which seeks to replicate the price and yield performance of the NYSE Arca Gold Miners Index</li></ul>

<ul><li> Market Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdxj#NYSE">GDXJ</a>), which seeks to replicate the Market Vectors Junior Gold Miners index</li></ul>

<ul><li> Buy shares of Barrick Gold (NYSE: <a class="ticker" href="/stock/abx#NYSE">ABX</a>), Goldcorp (NYSE: <a class="ticker" href="/stock/gg#NYSE">GG</a>) and Agnico-Eagle Mines (NYSE: <a class="ticker" href="/stock/aem#NYSE">AEM</a>)</li></ul>

Bearish:
 
Traders who believe that gold will drop sharply after this spike may consider these alternate positions:
 

<ul><li> PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>)</li></ul>

<ul><li> ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>)</li></ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Are Shares Of Gold Miners A Steal At These Levels?

FRANKFURT - Gold burst through $1,700 an ounce in Asia on Monday as investors dropped riskier assets and ran to the safety of the ancient currency.

Markets were sharply down in Asia in the first day of trading after Standard &amp; Poor's <a href="http://www.benzinga.com/markets/bonds/11/08/1838866/u-s-debt-downgraded-from-aaa">downgraded</a> the sovereign debt rating of the US to AA+ from AAA.

Jim Sinclair, known as Mr. Gold, wrote on his <a href="http://www.jsmineset.com/">blog</a> that the next target for gold is $1,764 with $1,784 being the gate to an entirely new phase.

Looking at a one year chart, gold has climbed from $1,197 an ounce to the new high reached today in Asia of over $1,715, a jump of approximately 43%.

Former Fed Chairman Alan Greenspan said on Sunday, "Considering the momentum in which the market went down over the last week, it is very unlikely, if history is any guide, that this isn't going to take a while to bottom out," on NBC's "Meet The Press" program.

If there is a further selloff in equities in Europe and the US later in the day, investors should expect gold to move even higher.

It might be time to batten down the hatches and <a href="http://www.benzinga.com/etfs/commodities/11/08/1826692/short-usd-short-eur-but-buy-gold-equities-cigs-and-whiskey">buy gold, cigs and whiskey</a>.

Depending on how you see it, there are a few ways to play gold and the dollar on Monday.

ACTION ITEMS:
 Bullish:
 
Traders who believe that gold will go higher might want to consider the following trades:
 

<ul><li> Play gold by picking up SPDR Gold Shares (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>)</li></ul>

<ul><li> Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>), which seeks to replicate the price and yield performance of the NYSE Arca Gold Miners Index</li></ul>

<ul><li> Market Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdxj#NYSE">GDXJ</a>), which seeks to replicate the Market Vectors Junior Gold Miners index</li></ul>

Bearish:
 
Traders who believe that gold will drop sharply after this spike may consider these alternate positions:
 

<ul><li> PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>)</li></ul>

<ul><li> ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>)</li></ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Media

Gold Takes Out $1,700 and Keeps Going Up in Asia

Precious metals and the Swiss franc are the clear winners in Monday's early trading, as there is little improvement in the debt ceiling negotiations in the United States, while at the same time the market euphoria over the EU agreement on Greece is fading. At around 5:40 GMT, the euro moved one step closer to parity with the franc as the European currency lost 0.73% of its value to trade around 1.1678, while the greenback slid 0.8% to 0.8126. At the same time, gold was pushed to new heights as the yellow metal passed through the $1,615 mark. At the moment, gold is trading around $1,615.65, or 0.81% above previous close. Silver is trading over the $40 barrier once more. Currently, silver stands at $40.55, or 1.16% above previous close.

Precious metals and the franc are traditionally seen as safe-havens by investors, as shelters to turn to in times of big crises and uncertainties. World is moving towards another crisis as the U.S. debt ceiling talks fail to progress. Over the weekend, the two sides were unable to break the ideological deadlock between them. Republicans still want to reduce the massive U.S. deficit through spending cuts, while Democrats are more comfortable with taxing the rich than with slashing spending on social welfare programs for the U.S. elderly and the poor.

As the negotiations approach August 2, the day when the U.S. government will not be able to repay its debts and will be forced to shut down, the stakes are rising. <a href="http://www.reuters.com/article/2011/07/25/us-usa-debt-downgrades-idUSTRE76O0BE20110725">Rating agencies</a> have warned they will slash their triple-A rating on the U.S. government bonds if shutdown takes place. However, rating agencies have also warned that the only way to safeguard the highest rating for the U.S. bonds will be to reach a credible plan to reduce the U.S. budget deficit. 

Other countries are becoming increasingly agitated over the failure to reach a debt ceiling agreement. Vince Cable, U.K.'s Business Secretary, has attacked the U.S. Republicans over their failure to compromise with President Obama. Speaking in a BBC show, <a href="http://www.bbc.co.uk/news/business-14267091">Mr. Cable</a> placed the blame for the current stalemate on “a few right-wing nutters in the American Congress”. It remains to be seen how Republicans and the U.S. public will respond to a strong criticism of the G.O.P. by the member of a foreign government. However, other governments should fear the U.S. government shutdown, since it is likely that the effects will be felt across the globe.

U.S. Treasury Secretary, <a href="http://www.bbc.co.uk/news/business-14268147">Tim Geithner</a>, remains confident that the last ditch efforts will be made and the worst case scenario will be avoided. Many traders still seem to believe the same, as the U.S. dollar is holding ground against its main rivals on Monday. At the moment, the U.S. dollar made a small retreat against the Japanese yen, falling 0.17% to stand around ¥78.41. At the same time, the euro added only 0.01% to its value against the greenback to trade around $1.4359.

The European currency is again under attack as the euphoria over the second Greek bailout eases. Rating agencies have warned that any “voluntary” participation of the private sector in the Greek bailout will be viewed as selective default and now they are starting to act on their promises. <a href="http://www.guardian.co.uk/business/2011/jul/22/fitch-puts-greece-on-restricted-default">Fitch</a> was the first to confirm it will put Greece into a “restricted default” rating. 

On Monday, <a href="http://www.reuters.com/article/2011/07/25/us-markets-ratings-greece-idUSTRE76O0I420110725">Moody's</a> slashed its rating on Greece by three notches from Caa1 to Ca, citing serious medium term insolvency problems. Policies agreed by the Europeans and the Greek government, which include privatization and austerity cuts, remain deeply unpopular among the Greek people. Many analysts are therefore rightfully worried that the Greek government will have huge difficulties in implementing the agreed reforms.

ACTION ITEMS: Bullish: Traders who believe that the two U.S. parties will not be able to reach an agreement by August and that Greece will falter in implementation of the agreed reforms, which should send the value of safe-havens skyrocketing, might want to consider the following trades: 

<ul><li>CurrencyShares Swiss Franc Trust ETF (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>) is a long play on the franc. FXF should rise if the franc appreciates.</li></ul>

<ul><li>iPath Dow Jones-AIG Precious Metals Total Return Sub-Index ETN (NYSE: <a class="ticker" href="/stock/jjp#NYSE">JJP</a>) is a long play on precious metals. JJP is expected to rise if prices of precious metals increase.</li></ul>

<ul><li>E-TRACS CMCI Gold ETN (NYSE: <a class="ticker" href="/stock/ubg#NYSE">UBG</a>) is a long play on gold. UBG should rise if the price of gold increases.</li></ul>

Bearish: Traders who believe that there is enough pragmatism among the U.S. political elites to reach a compromise and that the European determination will eventually prevail over its debt problems may consider an alternate positions: 

<ul><li>ETFS Short Swiss Franc Long US Dollar ETC ETF (<a class="ticker" href="/stock/schf#">SCHF</a>) is a short play on the franc. SCHF should rise if the franc depreciates.</li></ul>

<ul><li>PowerShares DB Gold Short ETN (NYSE: <a class="ticker" href="/stock/dgz#NYSE">DGZ</a>) is short play on gold. DGZ should rise if the price of gold decreases.</li></ul>

<ul><li>ProShares UltraShort Gold ETF (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) is another short play on gold. However, GLL should rise more than DGZ if the price of gold decreases.</li></ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Forex

iPath DJ-UBS Precious Metals Subindex Total Return ETN

SCHF

Precious Metals and Swiss Franc Rise Strongly as Debt Worries in Europe and the United States Continue

Market confidence seems to be recovering following a new deal on Greece. On Thursday, the Eurozone leaders agreed on the form of the second Greek bailout and markets have responded by eating into the value of safe havens. At around 5:40 am GMT, the U.S. dollar rose 0.42% against the Swiss franc to trade around 0.8184, while the euro added 0.2% to its value against the franc to stand around 1.1777. The Swiss franc has probably been the main beneficiary, among currencies at least, of the financial crisis that started in 2008 in the U.S. and then quickly spread to the whole world. Precious metals, other popular safe havens, were also in retreat of Friday. At the moment, gold fell back below the $1,600 mark, sliding 0.18% to stand around $1,588.25. Silver is also trading below an important $40 barrier, losing 0.93% to stand around $39.06.

It seems as if the Europeans have managed to find a long-term solution to Greece's problems, which has calmed the markets. On Thursday, the Eurozone leaders agreed on <a href="http://www.fxstreet.com/fundamental/market-view/market-insights/2011/07/22/?utm_source=twitterfeed&amp;utm_medium=twitter">a range of new measures</a> aimed at restoring financial stability in the debt-ridden country. The size of the new bailout was set to €109 billion. The Germans have managed to persuade other countries that it is crucial for the private sector to bear some of the costs of the crisis. It is estimated that the “voluntary participation” of the private sector to the bailout will amount to around €37 billion. In order to restore financial stability in Greece, debt maturity was raised from 7.5 years to a minimum 15 years and a maximum of 30 years. At the same time, Greece will be given a grace period of 10 years.

For a long time, the Europeans were trying to prevent the Greek crisis from spreading to other countries. In essence, they have failed miserably in this quest, since the crisis has spread to other peripheral economies. At this point, it was important to minimize the spillover effects of the Greek crisis on other debt-ridden countries on the Eurozone periphery. In order to achieve that, the Europeans had to get Greece out of the headlines. In other words, the second bailout has to be the real thing. The Eurozone cannot afford Greece to be forced into the corner again in a few months time. A decisive action was needed and the Europeans have stepped in when it mattered, or so it seems. 10 year grace period, longer debt maturity and lower interest rates should give enough time to Greece to stabilize its finances and shelter the troubled country from the attacks of bond market speculators.

Markets have responded positively to the news as both the euro and the European bank stocks rose following the news. The ultimate question is how long will the euphoria last. After all, the Europeans might try to avoid the word but this is a type of default. The Europeans might speak about voluntary participation of the private sector, but there is nothing voluntary about accepting <a href="http://www.bbc.co.uk/news/business-14245250">a 20% haircut</a>, which is a part of two options the Greek bond holders have at their disposal. The rating agencies have already warned the Europeans they will view any “voluntary” participation of the private sector in the second bailout as a default. It remains to be seen if Moody's, Fitch and S&amp;P will start targeting Italy and Spain after one Eurozone country was allowed to declare default.

There is a lot of risk in the new Greece bailout plan. Above all, it sends a message that the Eurozone countries can default. The Europeans were, of course, very quick to point out that Greece was a onetime thing. However, as <a href="http://blogs.reuters.com/felix-salmon/2011/07/21/greece-defaults/">Felix Salmon of Reuters</a> pointed out, the precedent deals never happen only once. It remains to be seen if the haircut in Greece will scare investors away from holding bonds of other Eurozone countries like Portugal, Ireland, Spain or Italy. If this scenario becomes reality, Greece might not be the only Eurozone country allowed to default on parts of its debt.

Across the Atlantic Ocean, tax increases for the rich remain the main stumbling block between the two sides. The Democrats have accepted deep spending cuts asked by the Republicans, which control the House of Representatives, in order to bring down the massive U.S. budget deficit. However, the Republicans seem reluctant to agree on raising taxes for the rich. As the combination of tax increases and spending cuts is the only option acceptable to the White House, the shutdown of the U.S. government becomes a more likely scenario with each day passing.

In spite of recent setbacks for safe havens like the Swiss franc and precious metals, there is still a lot of uncertainty in the global economy. The shutdown of the U.S. government, or credit rating cuts in the Eurozone periphery, could cause massive problems for the world economy, ultimately resulting in double dip recessions across the globe. It the global economy turns the wrong corner, the value of the franc, gold and silver will be rising to new heights very soon.

ACTION ITEMS: Bullish: Traders who believe that the market confidence in the Eurozone will be short-lived, which should provide a lot of tailwind for safe-heavens, might want to consider the following trades: 

<ul><li>CurrencyShares Swiss Franc Trust ETF (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>) is a long play on the Swiss franc. FXF should rise if the franc appreciates.</li></ul>

<ul><li>ELEMENTS MLCX Precious Metals ETN (NYSE: PMY) is a long play on precious metals. PMY should rise if the prices of precious metals increase.</li></ul>

<ul><li>PowerShares DB Gold Double Long ETN (NYSE: <a class="ticker" href="/stock/dgp#NYSE">DGP</a>) is a double long play on gold. DGP should rise if the price of gold increases.</li></ul>

Bearish: Traders who believe that the Eurozone has turned the corner and the U.S. is about to do the same in the next few days, which would restore market confidence and persuade a number of investors to leave safe havens, may consider an alternate positions: 

<ul><li>ETFS Short Swiss Franc Long US Dollar ETC (Sterling) ETF (SCHP) is a short play on the Swiss franc. SCHP should rise if the franc depreciates.</li></ul>

<ul><li>PowerShares DB Gold Short ETN (NYSE: <a class="ticker" href="/stock/dgz#NYSE">DGZ</a>) is a short play on gold. DGZ should rise if the price of gold decreases.</li></ul>

<ul><li>ProShares UltraShort Gold ETF (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) is another short play on gold. However, GLL should rise more than DGZ if the price of gold decreases.</li></ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.