{"id":1013,"date":"2008-06-19T10:59:42","date_gmt":"2008-06-19T15:59:42","guid":{"rendered":"http:\/\/selfinvestors.com\/tradingstocks\/goldsilver\/gold-silver-breaking-out-leverage-with-double-long-gold-etn-dbg\/"},"modified":"2018-08-12T01:40:39","modified_gmt":"2018-08-12T06:40:39","slug":"gold-silver-breaking-out-leverage-with-double-long-gold-etn-dgp","status":"publish","type":"post","link":"https:\/\/selfinvestors.com\/tradingstocks\/goldsilver\/gold-silver-breaking-out-leverage-with-double-long-gold-etn-dgp\/","title":{"rendered":"Gold & Silver Breaking Out?: Leverage with Double Long Gold ETN (DGP)"},"content":{"rendered":"

The following is analysis provided by TheCorrectCall.com<\/a> exclusive to readers of SelfInvestors.  I completely agree with this analysis.  Breaking of bullish wedge formations\/downtrends are taking place in the Gold & Silver ETFs.  Great post!<\/p>\n

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In our daily screens of stock charts exhibiting positive and negative MACD crossovers, The Correct Call<\/strong><\/font> recognized a trend too large to ignore. Our heads turned when we saw at least 25% of the upside candidates were Gold\/Silver stocks and ETFs<\/strong>. As we have noted many times before, we are big believers in confirmation. When we see a disproportionate number of companies in the same sector all presenting the same "buy signal", we feel it is safe to say something is happening.<\/p>\n

In these turbulent times it nice to find some water in the desert.<\/p>\n

Investors worried about mounting losses can possibly stem the tide by adding Gold to their portfolio. According to a study titled "Is Gold a Hedge or a Safe Haven? An Analysis of Stocks, Bonds and Gold"<\/em> by Dirk G. Baur and Brian M. Lucey, gold is an "ideal venue to park money during periods of uncertainty.<\/em>" Their analysis found that in the US, Gold and stock returns are negatively correlated and that Gold acts as a hedge at all times. That means when stocks go down, Gold usually goes up.<\/strong><\/p>\n

That’s good news for investors.<\/p>\n

All of the Gold\/Silver stock & ETF charts we reviewed look this iShares COMEX Gold Trust (IAU)<\/strong>. Each has roughly a 6 week narrow trading range with yesterday’s MACD breakout.<\/p>\n

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Conservative investors<\/strong> should buy IAU, streetTRACKS Gold Trust (GLD) or iShares Silver Trust (SLV).<\/p>\n

More aggressive<\/strong> investors might consider owning individual stocks or DB Gold Double Long ETN (DGP)<\/strong>. DGP’s objective is to give its owners twice the return of Gold’s price changes. That means if Gold moves up 5%, investors can expect see a return of 10%.<\/strong><\/p>\n

The precious metal stocks with charts pointing the way up include:<\/p>\n