Precious Metals Inverse ETF Funds

Many investors decide to invest in previous metals such as gold and silver to hedge themselves against the loss in purchasing power of paper currencies (fiat money).  During times of uncertainty, the price of gold and silver usually spikes due to the fact that many investors want to preserve their capital. 


When the economy shows signs of growth with signs of prosperity then gold and silver will usually decline in prices.  This is the best time to look into purchasing a precious metal inverse ETF.  A portfolio of inverse ETF precious metals funds will increase in value as the precious market declines in value.  
Gold Inverse ETF

If an investor believes the Gold market will go down then they can invest in multiple gold inverse ETFs that are available to both retail and institutional investors.  Investors interested in the Gold Inverse Exchange traded funds are usually hedging their long positions or believe the market is set for a correction or downturn.   

Leveraged ETFs trade at a multiple of the benchmark, so for a leveraged 2x Inverse Gold ETF. the funds performance will be 2x (200%) the benchmark.  If the market declines by 1% then the Gold ETF will profit by 2%. 

The majority of an Inverse Gold ETFs portfolio is made up of both Gold futures contracts and forwards.

Silver Inverse ETF


If an investor believes the Silver market will go down then they can invest in multiple silver inverse ETFs that are available to both retail and institutional investors.  Investors interested in the Silver Inverse ETF are usually hedging their long positions or believe the market is set for a correction or downturn.   

Leveraged ETFs trade at a multiple of the benchmark, so for a leveraged 2x Inverse Silver ETF. the funds performance will be 2x (200%) the benchmark.  If the market declines by 1% then the Silver ETF will profit by 2%. 

The majority of an Inverse Silver ETFs portfolio is made up of both Silver futures contracts and forwards.
Available Inverse Precious Metals ETFs

Inverse Gold ETF


Proshares Ultrashort Gold ETF (GLL) - Trades at 2x the gold market index.  It invests in both gold futures and contracts.  This Gold ETF has an inception date of 12/1/08.  The average daily trading volume is 150k shares a day. 

PowerShares DB Gold Short ETN 2x (DZZ)
- PowerShares DB Gold Short ETN, a gold Exchange Traded Note, tracks the performance of the Deutsche Bank Liquid Commodity index - Optimum Yield Gold Excess Return. The underlying index reflects changes in the value of particular gold futures contracts, but consists of a single unfunded gold futures contract.

PowerShares DB Gold Short ETN (DGZ) - DGZ, the PowerShares DB Gold Short ETN is an inverse Exchange Traded Note that moves in the opposite direction of the Deutsche Bank Liquid Commodity index - Optimum Yield Gold Excess Return. The underlying index reflects changes in the value of gold futures contracts, but actually comprised of just a single gold futures contract.
Inverse Silver ETF

ProShares Ultrashort Silver ETF (ZSL) - ZSL trades at 2x (200%) the benchmark for a single day.  Investors interested in this type of ETF are either hedging their long position or expect a correction / market decline in the silver market. 






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