Inverse exchange traded funds that profit from falling gold prices have received a boost the past two weeks as precious metal prices slide with global equities.
Short gold ETFs include PowerShares DB Gold Double Short ETN (NYSEArca: DZZ), ProShares Ultrashort Gold ETF (NYSEArca: GLL) and PowerShares DB Gold Short ETN (NYSE Arca: DGZ). [These ETFs Short Gold and Silver]
The products are geared to traders that closely monitor their portfolios, rather than buy-and-hold investors. Some of the inverse ETFs use leverage, which amplifies their daily moves.
Gold and silver ETFs have fallen in recent weeks on speculation some investors are selling profitable positions in precious metals to meet margin calls. [Silver ETFs Tarnished by Debt Worries, Stronger Dollar]
Gold has at times fallen with stocks, causing some investors to recently question the metal’s safe-haven status. [Gold Surrenders $1,700 an Ounce]
SPDR Gold Shares (NYSEArca: GLD) was down 1% in Friday’s premarket.