September 05, 2008 at 1:00 am by Tom Lydon
The double-digit losses in one month for precious metals exchange traded funds (ETFs) is yet another example of how jumping into hot markets can leave you burned when you don’t stick to the plan.
Over the summer, these ETFs were the “safe havens” during market turmoil, but as the U.S. dollar regained its strength, the bandwagon dumped all of the followers off in one quick swoop, reports Richard Widows for TheStreet.
The latest slip in precious metals was enough to take all of the focused ETFs into a negative zone. UBS E TRACS CM CI Silver Trust (USV) lost 19.9% in August, and is down 20.9% for the past three months.
Other August losers included:
- iShares Silver Trust (SLV): down 23.7%
- SPDR Gold Shares (GLD): down 9.3%
- ELEMENTS MLCX Precious Metals ETN (PMY): down 11.9%
- PowerShares DB Precious Metals (DBP): down 12.2%
Will losses continue this month? If the U.S. dollar stays strong, they could.
Tags: DBP, GLD, Gold, PMY, Precious Metals, Silver, SLV, USV
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September 5th, 2008 at 6:55 am
Still some companies holding up in the metal and mineral mining industry - 30 of the 78 companies in my Global Metal & Mineral Mining Index with gains over the past year:
http://www.etfrx.com/2008/09/global-metal-and-mineral-mining-index.html