Short Gold ETF Rallies As Gold Declines
With the recent pull back in Gold and Silver the upside action has been in the Short Gold ETF – GLL. In fact, in the past month it’s up over 17% at the time of this writing. GLL is actually a double short gold etf so when gold is down 2.2% today it actually produces a 4.4% gain in GLL.
There is also a short gold ETN – DZZ with is an exchange traded note but has the same exact relationship to gold and is trading up 4.4% today as well.
The short silver etf – ZSL is even performing better since the turn of the year up around 30%.
30% might sound like a huge gain in only a few short weeks but all you have to do is pull up a 1 year chart to put things in perspective. You can quickly see that ZSL was absolutely pounded throughout 2010 falling from a peak at $60 all the way down to below $10. So it was about time for a bounce to occur. The 200 day moving average for SLV doesn’t come in until we reach $22 so that’s going to be long term support for silver.