Sunday, November 6, 2011

A Levered Barrick Play

The Horizons BetaPro S&P/TSX Global Gold Bull+ ETF (HGU) and the Horizons BetaPro S&P/TSX Global Gold Bear+ ETF (HBP Gold Bear+ ETF) seek daily investment results equal to 200% the daily performance, or inverse daily performance, of the S&P/TSX Global Gold Index. The Index consists of securities of global gold sector issuers listed on the TSX, NYSE, NASDAQ and AMEX

This product is highly correlated now with heavy weight Barrick Gold and is basically a levered call on Barrick. OK if you like ABX like I do manly because of the recent higher low put in following 9-months of bullish price congestion the HGU at $16.52 is a lower cost way to participate in Barrick.Gold – think of the HGU as a call option with no expiry


James said...

Bill, so if gold were to drop and ABX along with it then does the same hold true of HGD, and therefore would be a great way to protect your investment or make money in a down turn? said...

Hi James

I am just suggesting there is high correlation between ABX and the HGU

We do need ABX to post a new 52-wk high in this move or the run up in the group is likely to end

Bill C