Wednesday, March 18, 2009

Long gold

I am back into the market in my trading account. With the Fed announcing 300 billion buy of treasuries (1 trillion net), hyperinflation combined with the depression of first degree is well on its way. The gold ETF spiked almost immediately. There are two gold ETFs : GLD and DGP, DGP is the double long ETF version of GLD.

I got into DGP at about 20.6 as a pure trade, though long term gold is where all the smart money is getting BIG positions in. Hedge fund czars John Paulson as well as David Einhorn are getting into gold, via bloomberg. as the money printing continues unabated by all major economies. Paulson bought a 11.3% stake in a gold miner Anglogold Ashanti, while Einhorn is buying the ETF GLD.

Zero hedge also has an interesting piece on this money printing.

Disclaimer : Long DGP in trading account

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