Diamonds Are an ETF’s Best Friend?
Thanks to Olivier Ludwig at IndexUniverse for a heads up about IndexIQ’s planned Physical Diamond Trust ETF (and to Tadas @ Abnormal Returns for this post title). The SEC filing is here, and there are...
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TVIX – You Mess With The Bull, You Get The Horns
First of all, if you want some background on what’s going on in TVIX please read these two related posts I’ve written on the subject: 1) $GAZ – The Ultimate Greater Fool Trade 2) $TVIX – Not Your...
View ArticleSo You Got Killed In TVIX Yesterday? CSFB Might Be Your Salvation
A lot of people lost a lot of money in $TVIX yesterday. Before continuing, you have to read this post I wrote last night. I want to be clear about something: I stand by every word of that post. If...
View ArticleDo We Need To Protect Investors From Themselves? AKA: That ETN Problem
Herb Greenberg asked me via Twitter if I thought that the SEC made a mistake in approving products like $TVIX in the first place. I think that in a way, I already wrote a post related to that question...
View ArticleCross A Greater Fool Trade With A Ponzi Scheme And You Get…
You can feel the exasperation in Jason Zweig’s post from a few days ago, titled “High Rates? Are You Delirious?” (emphasis mine) “Have today’s insanely low interest rates driven investors insane?...
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Latest Sprott Offering Proves Paper and Physical Gold Prices Are Not...
We’ve been through this before, but things can change, so it’s always a good idea to check and see if perhaps maybe, just maybe, “physical” gold prices and “paper” gold prices are decoupling. If...
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About That Big Change To SLV’s Silver Inventories
Last week, Zerohedge noticed that the Ishares Silver Trust ($SLV) reported a sizable increase in its silver inventories on Wednesday night (January 16, 2013). You can see all of SLV’s historical...
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Don’t Expect Follow On Offerings From Sprott Any Time Soon (PHYS, PSLV)
One of the main problems with the closed end trust structure (as opposed to the ETF structure) revolves around secondary offerings. While ETFs allow authorized participants to bring assets to their...
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No, GLD Shares May Not Be Used to Settle COMEX Contracts
As a public service to metal-heads who continue to be misinformed by not only by those writing blogs, but also by others cluttering blog comments sections with more misinformation confidently stated as...
View ArticleWhen Your Precious Metals Blogger Doesn’t Understand How ETFs Work…
One cannot speak intelligently about the metals markets these days when one does not understand how exchange traded funds work. $GLD for gold and $SLV for silver became massive players in their...
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A Leveraged ETF Trading Flow Case Study: Gold Miners –$GDX $NUGT $DUST
Share on StockTwits Today I came home from soccer practice (coaching, not playing) and was catching up on the FOMC-minutes-induced madness that had occurred in the previous few hours. What caught...
View ArticleClosed End Fund Arbitrage and Hostile Takeovers
Share on StockTwits Our story begins with a closed end gold trust – GTU – that has been trading at a significant discount to its net asset value. GTU, like its sister funds “CEF” (a mixed closed end...
View ArticleWhere Bloomberg Discovers That Large Orders Have Market Impact
Share on StockTwits In my former life, my trading desk made a lot of money trading around index-related flows. My bosses were amongst the first to grasp the impact of index fund demand and how it...
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Gold Miners Are Cheap. (?)
Share on StockTwits I have a confession to make: I am not the guy you want to talk to about valuing gold miners. The purpose of this post is not to bash gold or gold miners, or to try to convince...
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Let’s Talk About Arbitrage – Bitcoin Futures Edition
Let’s get one thing straight right off the bat: this is not a post where I’m going to debate the merits of Bitcoin or discuss it in the comments. Take your zealotry elsewhere. I want to talk about...
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$XIV Volpocalypse – A Sea of Disinformation and Misunderstanding
If you follow the stock market or the volatility market, you probably saw what happened on Monday afternoon when the VIX volatility index exploded higher, stocks tanked lower, and the $XIV Credit...
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